[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR42.708]



[Page 799]

 

            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]