N.  Summary of Changes

The Councils made the following changes to the FAR as a result of the public comments:

1.  Revised FAR 42.705-1(b)(1) to be consistent with language at FAR 52.216-7(d)(2).

2.  Revised FAR 42.705-1(b) and 42.705-2(b)(2) to clarify the role of the auditor.

The term "determination" was removed from proposed 42.705-1(b)(1)(ii);

FAR 42.705-1(b)(1)(iii), 42.705-1(b)(2), and 42.705-2(b) clarify that the auditor--

[cir] Reviews the proposal for adequacy and provides the findings of inadequacy to the contractor and contracting officer; and

[cir] Prepares an advisory audit report, after the proposal has been determined to be adequate for audit.

3.  Revised FAR 42.708(a)(2) to lower the percentage limitation in the existing quick-closeout criteria. FAR 42.708 (a)(2)(i) dollar limitation reverts to $1,000,000, instead of $4,000,000 in the proposed rule. Renumbered FAR 42.708(a)(3) as FAR 42.708(a)(4) and added a new paragraph FAR 42.708(a)(3). Provided examples of other pertinent information at new paragraph FAR 42.708(a)(3)(iii).

4.  Revised FAR 52.216-7(d)(2)(iii) to further illustrate the data.

5.  Revised FAR 52.216-7(d)(2)(iv) to clarify that the supplemental information listed, although it may not be required for a determination on the adequacy of the contractor's proposal, may be required during the audit process.

6.  Revised FAR 52.216-7(d)(2)(iii) and (d)(2)(iv) to clarify items provided for adequate final indirect cost rate proposal at FAR 52.216-7(d)(2)(i).