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  • Question

    With the use of quick closeout, FAR 42.708, states " determinations of final indirect costs under the quick-closeout procedure provided 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." Is the same statement true for early closeout? Or can the Govt go back and collect the owed monies?


    Answer

    FAR 4.804-1 (b) states, "When closing out the contract files at 4.804-1(a)(2), (3), and (4), the contracting officer shall use the closeout procedures at 4.804-5. However, these closeout actions may be modified to reflect the extent of administration that has been performed. Quick closeout procedures (see 42.708) should be used, when appropriate, to reduce administrative costs and to enable deobligation of excess funds. 

    As you state in your question,
    42.708(b) states, "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."

    Therefore
    42.708(b) also applies to the Quick Closeout Procedures and the Government does not go back and collect "owed" moneies in your circumstance as agreement on the rates were made and the clause says, determinations of final indirect costs shall be final for the contract it covers.

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