What is one of the primary purposes of contractor record retention?

One of the primary purposes of contractor record retention is to allow for audits and reviews. Maintaining comprehensive records ensures that all transactions, decisions, and actions taken during the contract lifecycle can be reviewed for compliance with federal laws, regulations, and contract terms. This practice supports transparency and accountability, which are critical in federal contracting. Audits may be conducted by government agencies to evaluate contractor performance, adherence to regulatory requirements, and the proper use of government funds. Robust record retention policies ensure that all necessary documentation is available to support these evaluations, making it possible to identify discrepancies or areas that require corrective actions.

While minimizing contract costs, managing contractor relationships, and enhancing bidding strategies are also important aspects of contract management, they do not directly constitute the primary purpose of record retention in the context of compliance and audit readiness. Therefore, the focus on enabling audits and reviews highlights the critical nature of keeping accurate and accessible documentation throughout the duration of a contract.