B.  Adequacy Determination

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 the term "adequate" be replaced with "complete" or "detailed" at FAR 42.705-1(b). The respondent states that the phrase "the contractor shall submit * * * an adequate indirect cost rate proposal" is inappropriate, as the Defense Contract Audit Agency (DCAA) has historically interpreted the term "adequate" to mean identical to DCAA's incurred cost model.

Response: Use of the term "adequate" for describing the Government's requirements for submission of costs is more appropriate than utilizing the terms "complete" or "detailed". The FAR already required the submission of an adequate final indirect cost rate proposal (FAR 42.705-1(b)). This final rule establishes the content of an adequate submission.