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  • Question

    I ask because while closing out contracts, I have come upon a .01 difference. Example, contract $3456.17, vendor submitted charge $3456.16.


    Answer

    Your example appears to be a FAR Part 13 acquisition using Simplified Acquisition Procedures. The purpose of Simplified Acquisition, according to FAR 13.002 is to-- (a) Reduce administrative costs;

     (b) Improve opportunities for small, small disadvantaged, women-owned, veteran-owned, HUBZone, and service-disabled veteran-owned small business concerns to obtain a fair proportion of Government contracts;

     (c) Promote efficiency and economy in contracting; and

    (d) Avoid unnecessary burdens for agencies and contractors.

    The payment office for your contract will issue payment for the invoiced amount up to the contract price. Only those additional actions required by your organization beyond the directions at FAR 4.804 and the associated DFARS and DFARS PGI references need be accomplished prior to close out the contract.  This principle of handling relatively insignificant variations between contract price and contractor invoice in a fair and prudent manner can be witnessed in FAR 42.708 – Quick-Closeout Procedure. 

    One of the conditions which allow the contracting officer 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 indirect rates set forth in FAR 42.705, is, FAR 42.708(a)(2) the lesser of (i) $1,000,000; or (ii) 10 percent of the total contract, task order, or delivery order amount. FAR 42.705(d) goes on to say this contracting officers determination is final for the contract it covers.


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