---
kind: "section"
citation: "48 C.F.R. § 42.705"
title: "48"
number: "42.705"
heading: "Final indirect cost rates."
url: "https://uscodex.org/cfr/48/42.705"
---

# §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 in writing by the contracting officer,) after settlement of the final annual indirect cost rates for all years of a physically complete contract, the contractor must submit a completion invoice or voucher reflecting the settled amounts and rates. To determine whether a period longer than 120 days is appropriate, the contracting officer should consider whether there are extenuating circumstances, such as the following:
  - (1) **Pending closeout of subcontracts awaiting Government audit.**
  - (2) **Pending contractor, subcontractor, or Government claims.**
  - (3) **Delays in the disposition of Government property.**
  - (4) **Delays in contract reconciliation.**
  - (5) **Any other pertinent factors.**
- (c)
  - (1) If the contractor fails to submit a completion invoice or voucher within the time specified in [paragraph (b)](#b) of this section, the contracting officer may—
    - (i) Determine the amounts due to the contractor under the contract; and
    - (ii) **Record this determination in a unilateral modification to the contract.**
  - (2) This contracting officer determination must be issued as a final decision in accordance with 33.211.

## Notes

### Amendments

[61 FR 69296, Dec. 31, 1996, as amended at 67 FR 6119, Feb. 8, 2002]

### Authority

Authority: 41 U.S.C. 1121(b); 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113.

### Source

Source: 48 FR 42370, Sept. 19, 1983, unless otherwise noted.

### Amendments

[61 FR 69296, Dec. 31, 1996, as amended at 67 FR 6119, Feb. 8, 2002]