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FAR and DFARS › DFARS Part 242: Contract Administration and Audit Services › Subpart 242.7

DFARS 242.708 Quick-closeout procedure.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section lets Defense Contract Management Agency administrative contracting officers negotiate to settle direct and indirect costs for a specific contract, task order, or delivery order before final direct costs and indirect rates are determined under FAR 42.705. It applies regardless of dollar value or the percentage of unsettled costs, and it sets a $2 million limit for when unsettled costs are considered relatively insignificant.

Applies to: Defense Contract Management Agency administrative contracting officers and contracts they close out

Key terms: quick-closeout procedure · administrative contracting officers · direct costs · indirect costs · unsettled costs

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) Defense Contract Management Agency administrative contracting officers are authorized to 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 FAR 42.705, regardless of the dollar value or percentage of unsettled direct or indirect costs allocable to the contract, task order, or delivery order.

(2) In lieu of the thresholds at FAR 42.708(a)(2)(i) and (ii), the amount of unsettled direct costs and indirect costs to be allocated to the contract, task order, or delivery order 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 do not exceed $2 million, regardless of the total contract, task order, or delivery order amount.

Sections it refers to

  • 42.705 Final indirect cost rates.
  • 42.708 Quick-closeout procedure.

← 242.705-2 Auditor determination procedure. · 242.771 Independent research and development and bid and proposal costs. →

Rule changes for DFARS Part 242

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

DFARS 242.708 Quick-closeout procedure · SpendQuery