Use of Quick-Closeout Procedure for Cost-Reimbursement,
Fixed-Price Incentive, Fixed-Price Redeterminable and Time-and-Materials Contracts.
In accordance with DFARS 201.404 and under
the authority granted to me by the Director of the Defense Contract Management
Agency memo dated July 22, 2002, I hereby approve this class deviation to
42.703-1(b) and FAR
42.703-1(c)(2) and FAR
42.708(a)(2). This revises and extends the previous deviation that was
29, 2003 and will expire September
This deviation authorizes Administrative
Contracting Officers (ACOs) to close specific contracts prior to the establishment
of final indirect cost rates regardless of dollar value or the percent of
unsettled indirect costs allocable. This deviation may be used provided
the contractor has submitted a final certified indirect cost rate proposal
that has been audited by the Defense Contract Audit Agency (DCAA). This
deviation is subject to the following conditions:
It applies to cost-reimbursement,
fixed-price incentive, fixed-price redeterminable, and time-and-materials
ACOs must use either DCAA-recommended
rates or other rates mutually agreed to by the ACO and the contractor in
determining the final indirect expenses.
In selected instances, the audit requirement may be waived when compelling
reasons exist. The decision to waive the audit must be made by the cognizant
ACO in consultation with DCAA.
ACOs must ensure contract
closeout under this deviation does not impact the Government’s negotiation
flexibility on the remaining unsettled contracts. Indirect cost rates
used under this deviation must not be considered as setting precedent when
establishing the final indirect cost rates for other contracts.
This deviation shall not be used if
there are significant open cost issues such as Cost Accounting Standards
noncompliances or issues in litigation.
This deviation covers
the period commencing with the date of this deviation and terminating on
September 30, 2007.
/s/ Sep 23, 2005
SALLIE H. FLAVIN Date
Senior Procurement Executive
Defense Contract Management Agency