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                            42.708 Quick-closeout procedure.
        
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FAC Number: 2024-03 Effective Date: 02/23/2024
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Subpart42.042.142.242.342.442.542.642.742.842.942.1142.1242.1342.1542.1642.17
Section42.70042.70142.70242.70342.70442.70542.70642.70742.70842.709
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42.708 Quick-closeout procedure.42.708 Quick-closeout procedure.       (a) 						            The contracting officer responsible for contract closeout shall negotiate the settlement of direct and indirect costs for a specific contract, task order, or delivery order to be closed, in advance of the determination of final direct costs and indirect rates set forth in  42.705, if-                                                         (1) 								                The contract, task order, or delivery order is physically complete;                                                            (2) 								                The amount of unsettled direct costs and indirect costs to be allocated to the contract, task order, or delivery order is relatively insignificant. Cost amounts will be considered relatively insignificant when the total unsettled direct costs and indirect costs to be allocated to any one contract, task order, or delivery order does not exceed the lesser of-                                                                           (i) 										                    $1,000,000; or                                                                              (ii) 										                    10 percent of the total contract, task order, or delivery order amount;                                                                                                           (3) 								                The contracting officer performs a risk assessment and determines that the use of the quick-closeout procedure is appropriate. The risk assessment shall include-                                                                           (i) 										                    Consideration of the contractor’s accounting, estimating, and purchasing systems;                                                                              (ii) 										                    Other concerns of the cognizant contract auditors; and                                                                              (iii) 										                    Any other pertinent information, such as, documented history of Federal Government approved indirect cost rate agreements, changes to contractor’s rate structure, volatility of rate fluctuations during affected periods, mergers or acquisitions, special contract provisions limiting contractor’s recovery of otherwise allowable indirect costs under cost reimbursement or time-and-materials contracts; and                                                                                                           (4) 								                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.    **Parent topic:**  Subpart 42.7 - Indirect Cost Rates
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