[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR42.708]

[Page 775]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 42_CONTRACT ADMINISTRATION AND AUDIT SERVICES--Table of Contents
 
                    Subpart 42.7_Indirect Cost Rates
 
Sec.  42.708  Quick-closeout procedure.

    (a) The contracting officer responsible for contract closeout shall 
negotiate the settlement of indirect costs for a specific contract, in 
advance of the determination of final indirect cost rates, if--
    (1) The contract is physically complete;
    (2) The amount of unsettled indirect cost to be allocated to the 
contract is relatively insignificant. Indirect cost amounts will be 
considered insignificant when--
    (i) The total unsettled indirect cost to be allocated to any one 
contract does not exceed $1,000,000; and
    (ii) Unless otherwise provided in agency procedures, the cumulative 
unsettled indirect costs to be allocated to one or more contracts in a 
single fiscal year do not exceed 15 percent of the estimated, total 
unsettled indirect costs allocable to cost-type contracts for that 
fiscal year. The contracting officer may waive the 15 percent 
restriction based upon a risk assessment that considers the contractor's 
accounting, estimating, and purchasing systems; other concerns of the 
cognizant contract auditors; and any other pertinent information; and
    (3) Agreement can be reached on a reasonable estimate of allocable 
dollars.
    (b) Determinations of final indirect costs under the quick-closeout 
procedure provided for by the Allowable Cost and Payment clause at 
52.216-7 or 52.216-13 shall be final for the contract it covers and no 
adjustment shall be made to other contracts for over- or under-
recoveries of costs allocated or allocable to the contract covered by 
the agreement.
    (c) Indirect cost rates used in the quick closeout of a contract 
shall not be considered a binding precedent when establishing the final 
indirect cost rates for other contracts.

[48 FR 42370, Sept. 19, 1983, as amended at 55 FR 52796, Dec. 21, 1990; 
61 FR 31661, June 20, 1996]