---
kind: "section"
citation: "48 C.F.R. § 242.7302"
title: "48"
number: "242.7302"
heading: "Requirements."
url: "https://uscodex.org/cfr/48/242.7302"
---

# §242.7302. Requirements.

- (a)
  - (1) An in-depth CIPR as described at DFARS 242.7301(a)(1) shall be conducted only when—
    - (i) A contractor has $50 million of qualifying sales to the Government during the contractor's preceding fiscal year; and
    - (ii) The ACO, with advice from DCMA insurance/pension specialists and DCAA auditors, determines a CIPR is needed based on a risk assessment of the contractor's past experience and current vulnerability.
  - (2) Qualifying sales are sales for which certified cost or pricing data were required under [10 U.S.C. 3702](/usc/10/3702.md), as implemented in FAR 15.403, or that are contracts priced on other than a firm-fixed-price or fixed-price with economic price adjustment basis. Sales include prime contracts, subcontracts, and modifications to such contracts and subcontracts.
- (b) A special CIPR that concentrates on specific areas of a contractor's insurance programs, pension plans, or other deferred compensation plans shall be performed for a contractor (including, but not limited to, a contractor meeting the requirements in [paragraph (a)](#a) of this section) when any of the following circumstances exists, but only if the circumstance(s) may result in a material impact on Government contract costs:
  - (1) **Information or data reveals a deficiency in the contractor's insurance/pension program.**
  - (2) The contractor proposes or implements changes in its insurance, pension, or deferred compensation plans.
  - (3) **The contractor is involved in a merger, acquisition, or divestiture.**
  - (4) **The Government needs to follow up on contractor implementation of prior CIPR recommendations.**
- (c) The DCAA auditor shall use relevant findings and recommendations of previously performed CIPRs in determining the scope of any audits of insurance and pension costs.
- (d) When a Government organization believes that a review of the contractor's insurance/pension program should be performed, that organization should provide a recommendation for a review to the ACO. If the ACO concurs, the review should be performed as part of an ACO-initiated special CIPR or as part of a CIPR already scheduled for the near future.

## Notes

### Amendments

[78 FR 13544, Feb. 28, 2013, as amended at 87 FR 76996, Dec. 16, 2022]

### Authority

Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.

### Source

Source: 56 FR 36437, July 31, 1991, unless otherwise noted.

### Amendments

[78 FR 13544, Feb. 28, 2013, as amended at 87 FR 76996, Dec. 16, 2022]