42.709-2 Responsibilities.
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(a) The cognizant contracting officer is responsible for-
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(1) Determining whether the penalties in 42.709-1(a) should be assessed;
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(2) Determining whether such penalties should be waived pursuant to 42.709-5; and
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(3) Referring the matter to the appropriate criminal investigative organization for review and for appropriate coordination of remedies, if there is evidence that the contractor knowingly submitted unallowable costs.
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(b) The contract auditor, in the review and/or the determination of final indirect cost proposals for contracts subject to this section, is responsible for-
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(1) Recommending to the contracting officer which costs may be unallowable and subject to the penalties in 42.709-2(a);
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(2) Providing rationale and supporting documentation for any recommendation; and
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(3) Referring the matter to the appropriate criminal investigative organization for review and for appropriate coordination of remedies, if there is evidence that the contractor knowingly submitted unallowable costs.
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