(a) Requirement. A DoD Component's general terms and conditions must address audit requirements.

(b) Award terms and conditions—(1) General. A DoD Component's general terms and conditions must include the wording appendix E to this part provides for FMS Article V.

(2) Exception. A DoD Component may reserve Section B of the wording in appendix E if there will be no subawards to for-profit entities under any award using those terms and conditions.