Government Contracts DFARS Class Deviation Updates Quick-Closeout Threshold
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Wednesday, June 19, 2019

DFARS Class Deviation Updates Quick-Closeout Threshold

The Department of Defense has issued Class Deviation 2019-O0009, Quick-Closeout Procedures Threshold. The deviation directs contracting officers to deviate from the quick-closeout procedures in FAR 42.708(a) for cost reimbursement, time and material, labor hour, fixed-price incentive, and fixed-price redeterminable contracts, task orders, and delivery orders. Specifically, in lieu of the thresholds at FAR 42.708(a)(2)(i) and (ii), COs must consider cost amounts to be relatively insignificant when the total unsettled direct and indirect costs to be allocated to any one contract, task order, or delivery order do not exceed $2 million. In addition, Defense Contract Management Agency Administrative COs are authorized to deviate from FAR 42.708(a)(2) and 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 direct costs and indirect rates set forth in FAR 42.705 regardless of the dollar value or percent of unsettled direct or indirect costs allocable to the contract. This class deviation supersedes and incorporates the DCMA Quick-Closeout Procedure Class Deviation of August 15, 2017 (DCMA 17-142). For the text of the class deviation, effective May 3, 2019, see ¶70,245.103.

By Government Contracts Editorial Staff

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