A.  "Adequacy" Definition

The final rule implements the changes published in the proposed rule, without further amendments in response to comments in this category.

Comment: One respondent recommends a new definition for "adequacy" at FAR 42.705-1. The respondent states that guidelines for determining adequacy should be established in order to provide a baseline against which the contracting officer can resolve differences of opinion on adequacy between the auditor and the contractor.

Response: A new definition is not necessary, as specific information has been provided in the clause to ensure uniformity, consistency, and fairness for all contractors. This assures that contractors are fully informed in advance of the Government's parameters for the content of an adequate final indirect cost rate proposal.