541 - Approval of accounting system.
SUBCHAPTER E TYPES OF CONTRACTS Sec. 541. Approval of accounting system. 542. Multiterm contracts. 543. Effective contracts. § 541. Approval of accounting system. No contract type shall be used unless it has been determined in writing by the head of the purchasing agency that: (1) The proposed contractor's accounting system will permit timely development of all necessary cost data in the form required by the specific contract type contemplated. (2) The proposed contractor's accounting system is adequate to allocate costs in accordance with generally accepted accounting principles. Notwithstanding the preceding, a contract may be used without a prior written determination where the contract is a firm, fixed- price contract or a contract awarded under section 516 (relating to emergency procurement). Cross References. Section 541 is referred to in section 561 of this title.