FAR 42.708 - Quick-Closeout Procedure
Subject: Contract Administration, Contract Closeout
Source: FAR
FAR Part: FAR 42
DFAR Part:
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 does 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 quickcloseout procedure provided for by the Allowable Cost and Payment (FAR 52.216-7) clause at 52.216-7 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.
