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    RATE AGREEMENT ) The language below represents an indirect cost-rate agreement the government used to settled indirect cost rate for FY2004. Both parties signed the rate agreement for the indirect cost rate for FY2004. The question is raised: Since the contractor did not submit his/her voucher within the time limit allowed as indicated in agreement , which is 120 days after the agreement has been signed, then the Government can reopen negotiations or the agreement is voided. However, the language clearly indicated that the “Contractor acknowledges that if it fails to submit final invoices or final vouchers within this 120-day period, the ACO may unilaterally determine amounts due or owed under the contracts in accordance with FAR 52.2l6-7(d)(6).” The result of the discussion in the office with others is that the government can reopen negotiations or the agreement is voided. Several individuals disagree since both parties have signed the agreement, which is a binding document, and the government should have taken the appropriate action as indicated in the agreement in paragraph below number (9) is a part of the agreement. 9. If contractor has completed performance under the specified contracts for respective contracts, a final voucher submittal and assignment and release documents for those contracts must be submitted no later than 120 days from the date on which this Agreement is executed. contractor acknowledges that if it fails to submit final invoices or final vouchers within this 120 day period, the ACO may unilaterally determine amounts due or owed under the contracts in accordance with FAR 52.216-7(d)(6). Does the government has the right to reopen negotiations/void the rate agreement just because the contractor didn't submit final voucher within 120 days?


    Answer

    I was a bit confused by the background provided.  I think you are saying FAR 52.216-7(d)(6) was included in the contract so the Government and the Contractor need to follow FAR 52.216-7(d)(6), but there are others in your office telling you the Government can reopen negotiations.  I recommend you follow FAR 52.216-7(d)(6)(i) and (ii)

    (i) If the Contractor fails to submit a completion invoice or voucher within the time specified in paragraph (d)(5) of this clause, the Contracting Officer may--

    (A) Determine the amounts due to the Contractor under the contract; and

    (B) Record this determination in a unilateral modification to the contract.

    (ii) This determination constitutes the final decision of the Contracting Officer in accordance with the Disputes clause.

    Recommend you also speak with legal.

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