42.708  Quick-closeout procedure.

FAC 2005–17 JUNE 14, 2007

(a)  The contracting officer responsible for contract close-out 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 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.