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48 CFR · Federal Acquisition Regulation and Defense supplement

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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.

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39 sections with “final indirect cost rates”

  • FAR 42.705 Final indirect cost rates.
    (a) Final indirect cost rates shall be established on the basis of— (1) Contracting officer determination procedure (see 42.705-1) or (2) Auditor determination procedure (see 42.705-2). (b) Within 120 days (or longer period, if approved …
  • DFARS 242.705 Final indirect cost rates.
  • FAR 52.242-4 Certification of Final Indirect Costs.
    As prescribed in 42.703-2(f), insert the following clause: Certification of Final Indirect Costs (JAN 1997) (a) The Contractor shall— (1) Certify any proposal to establish or modify final indirect cost rates; (2) Use the format in parag…
  • FAR 42.707 Cost-sharing rates and limitations on indirect cost rates.
    …pment contracts, see 35.003(b). (b)(1) Other situations may make it prudent to provide a final indirect cost rate ceiling in a contract. Examples of such circumstances are when the proposed contractor— (i) Is a new or recently reorganized…
  • FAR 52.216-15 Predetermined Indirect Cost Rates.
    … upon by the parties, as specified below. (b)(1) The Contractor shall submit an adequate final indirect cost rate proposal to the Contracting Officer (or cognizant Federal agency official) and auditor within the 6-month period following th…
  • FAR 42.703-2 Certificate of indirect costs.
    …U.S.C. 4307, a proposal shall not be accepted and no agreement shall be made to establish final indirect cost rates unless the costs have been certified by the contractor. (b) Waiver of certification. (1) The agency head, or designee, may …
  • FAR 49.303-4 Adjustment of indirect costs.
    …able Cost and Payment, and it appears that adjustment of indirect costs will unduly delay final settlement, the TCO, after obtaining information from the appropriate audit agency, may agree with the contractor to— (1) Negotiate the amount …
  • FAR 52.216-7 Allowable Cost and Payment.
    …interest penalty provisions of the Prompt Payment Act. Interim payments made prior to the final payment under the contract are contract financing payments, except interim payments if this contract contains Alternate I to the clause at 52.23…
  • FAR 30.606 Resolving cost impacts.
    …; and (B) Adjust interim payment requests (public vouchers and/or progress payments) and final vouchers to reflect the difference between the costs paid using the noncompliant practice and the costs that should have been paid using the com…
  • FAR 42.704 Billing rates.
    …gnizant Federal agency official) or auditor responsible under 42.705 for establishing the final indirect cost rates also shall be responsible for determining the billing rates. (b) The contracting officer (or cognizant Federal agency offic…
  • FAR 31.110 Indirect cost rate certification and penalties on unallowable costs.
    (a) Certain contracts require certification of the indirect cost rates proposed for final payment purposes. See 42.703-2 for administrative procedures regarding the certification provisions and the related contract clause prescription. (b)…
  • FAR 52.230-6 Administration of Cost Accounting Standards.
    …part 16.4); (3) Orders issued under indefinite-delivery contracts and subcontracts where final payment is not based on actual costs incurred (FAR Subpart 16.5); and (4) The fixed-hourly rate portion of time-and-materials and labor-hours c…
  • FAR 52.242-3 Penalties for Unallowable Costs.
    … Costs (DEC 2022) (a) Definition. Proposal, as used in this clause, means either— (1) A final indirect cost rate proposal submitted by the Contractor after the expiration of its fiscal year which— (i) Relates to any payment made on the b…
  • FAR 2.101 Definitions.
    …e Federal agency that, on behalf of all Federal agencies, is responsible for establishing final indirect cost rates and forward pricing rates, if applicable, and administering cost accounting standards for all contracts in a business unit. …
  • FAR 42.703-1 Policy.
    (a) A single agency (see 42.705-1) shall be responsible for establishing final indirect cost rates for each business unit. These rates shall be binding on all agencies and their contracting offices, unless otherwise specifically prohibited …
  • FAR 42.705-1 Contracting officer determination procedure.
    …ntracting officer (or cognizant Federal agency official) responsible for establishing the final indirect cost rates: (1) Business units of a multidivisional corporation under the cognizance of a corporate administrative contracting officer…
  • FAR 42.705-3 Educational institutions.
    (a) General. (1) Postdetermined final indirect cost rates shall be used in the settlement of indirect costs for all cost-reimbursement contracts with educational institutions, unless predetermined final indirect cost rates are authorized an…
  • FAR 42.801 Notice of intent to disallow costs.
    … issued without coordination with the contracting officer or auditor having authority for final indirect cost settlement (see 42.705). (f) In the event the contractor submits a response that disagrees with the notice (see paragraph (b) abo…
  • FAR 42.708 Quick-closeout procedure.
    … 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 amoun…
  • FAR 4.804-5 Procedures for closing out contract files.
    …t procedures must ensure that— (1) Disposition of classified material is completed; (2) Final patent report is cleared. If a final patent report is required, the contracting officer may proceed with contract closeout in accordance with th…
  • FAR 30.604 Processing changes to disclosed or established cost accounting practices.
    …r closed) or the fiscal year(s) in which the costs are incurred (i.e., whether or not the final indirect rates have been established); (2) Combine the cost impact for all affected CAS-covered contracts and subcontracts for all segments if …
  • FAR 42.302 Contract administration functions.
    …osts when there is reason to believe they should be suspended or disapproved, and approve final vouchers. (8) Issue Notices of Intent to Disallow or not Recognize Costs (see subpart 42.8). (9) Establish final indirect cost rates and billi…
  • FAR 42.705-2 Auditor determination procedure.
    …a) Applicability and responsibility. (1) The cognizant Government auditor shall establish final indirect cost rates for business units not covered in 42.705-1(a). (2) In addition, auditor determination may be used for business units that a…
  • FAR 52.212-4 Contract Terms and Conditions—Commercial Products and Commercial Services.
    …rence. The Contractor shall proceed diligently with performance of this contract, pending final resolution of any dispute arising under the contract. (e) Definitions. The clause at FAR 52.202-1, Definitions, is incorporated herein by refer…
  • FAR 52.232-7 Payments under Time-and-Materials and Labor-Hour Contracts.
    …had been incurred after the increase in the ceiling price. (f) Audit. At any time before final payment under this contract, the Contracting Officer may request audit of the vouchers and supporting documentation. Each payment previously mad…
  • DFARS 252.242-7006 Accounting System Administration.
    …nsistent method for the accumulation and allocation of indirect costs to intermediate and final cost objectives; (5) Accumulation of costs under general ledger control; (6) Reconciliation of subsidiary cost ledgers and cost objectives to …
  • FAR 30.605 Processing noncompliances.
    …osts paid by the Government, in the aggregate; and (4) The net effect of any interim and final voucher billing adjustments made to correct a cost accumulation noncompliance will not result in the recovery of more than the increased cost pa…
  • FAR 42.702 Purpose.
    (a) Establishing final indirect cost rates under this subpart provides— (1) Uniformity of approach with a contractor when more than one contract or agency is involved; (2) Economy of administration; and (3) Timely settlement under cost-r…
  • FAR 52.216-10 Incentive Fee.
    …5 percent of all fee withholds under this contract after receipt of an adequate certified final indirect cost rate proposal covering the year of physical completion of this contract, provided the Contractor has satisfied all other contract …
  • FAR 52.216-26 Payments of Allowable Costs Before Definitization.
    …ern may receive more frequent payments than every 2 weeks. (f) Audit. At any time before final payment, the Contracting Officer may have the Contractor's invoices or vouchers and statements of costs audited. Any payment may be (1) reduced …
  • FAR 15.408 Solicitation provisions and contract clauses.
    … the agreement, include a copy, and describe its nature. H. As soon as practicable after final agreement on price or an earlier date agreed to by the parties, but before the award resulting from the proposal, you must, under the conditions…
  • FAR 31.001 Definitions.
    …icable law, regulation, or contract, is specifically named and stated to be unallowable. Final cost objective means (except for subparts 31.3 and 31.6) a cost objective that has allocated to it both direct and indirect costs and, in the co…
  • FAR 42.603 Responsibilities.
    …gnated by the responsible agency. Typical CACO functions include (1) the determination of final indirect cost rates for cost-reimbursement contracts, (2) establishment of advance agreements or recommendations on corporate/home office expens…
  • FAR 42.700 Scope of subpart.
    …his subpart prescribes policies and procedures for establishing (a) billing rates and (b) final indirect cost rates.
  • FAR 42.701 Definition.
    …rsement of incurred indirect costs and (2) adjusted as necessary pending establishment of final indirect cost rates.
  • FAR 15.404-1 Proposal analysis techniques.
    (a) General. The objective of proposal analysis is to ensure that the final agreed-to price is fair and reasonable. (1) The contracting officer is responsible for evaluating the reasonableness of the offered prices. The analytical techniqu…
  • FAR 42.709-6 Waiver of the penalty.
    …written notice, or holds an entrance conference, indicating that audit work on a specific final indirect cost proposal has begun); (b) The amount of the unallowable costs under the proposal which are subject to the penalty is $10,000 or le…
  • FAR 4.804-1 Closeout by the office administering the contract.
    …nsidered closed when the contracting officer receives evidence of receipt of property and final payment, unless otherwise specified by agency regulations. (2) Files for firm-fixed-price contracts, other than those using simplified acquisit…
  • DFARS 242.708 Quick-closeout procedure.
    …c 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 allo…

FAR (chapter 1)

DFARS (chapter 2, Defense)

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Rule changes in progress: FAR, DFARS. Terms: glossary.