Certificate of Final Indirect Costs

The Certificate of Final Indirect Costs is captured in the contract clause FAR 52.242-4 - Certification of Final Indirect Costs

The FAR requirement to have a VP or CFO sign the certificate is applicable to all contractor and all home office incurred cost submissions. For the government to accept the incurred cost submission, it must be certified by the contractor and the certification must be signed by an individual of the Contractor’s organization at a level no lower than a vice president or chief financial officer of the business segment of the Contractor that submits the proposal.

Otherwise, the submission can be returned as inadequate for not meeting the requirements specified in the FAR reference 52.216-7, Allowable Cost and Payment Clause, (N) Certificate of final indirect costs (see 52.242-4, Certification of Final Indirect Costs), which is prescribed by 42.703-2(f), required when establishing or modifying final indirect cost rates. FAR 42.703-2 Certificate of indirect costs, states,

"(a) General. In accordance with 10 U.S.C. 3747 and 41 U.S.C.4307, a proposal shall not be accepted and no agreement shall be made to establish final indirect cost rates unless the costs have been certified by the contractor."

Certificate of Final Indirect Costs

This is to certify that I have reviewed this proposal to establish final indirect cost rates and to the best of my knowledge and belief:

1. All costs included in this proposal (identify proposal and date) to establish final indirect cost rates for (identify period covered by rate) are allowable in accordance with the cost principles of the Federal Acquisition Regulation (FAR) and its supplements applicable to the contracts to which the final indirect cost rates will apply; and

2. This proposal does not include any costs which are expressly unallowable under applicable cost principles of the FAR or its supplements.

Firm: _________________________________________

Signature: _____________________________________

Name of Certifying Official: ______________________

Title: _________________________________________

Date of Execution: ______________________________