# 48 C.F.R. § 42.705 (2026): Final indirect cost rates

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T48_P42_S42_705

## Section

- **Citation:** 48 C.F.R. § 42.705 (2026)
- **Heading:** Final indirect cost rates
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Title 48 CFR: Federal Acquisition Regulations System / Chapter 1 / Part 42 / Subpart 42.7 / § 42.705: Final indirect cost rates.

## Text

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

## Nearby sections

- [48 C.F.R. § 42.700 (2026) Scope of subpart.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P42_S42_700.md)
- [48 C.F.R. § 42.701 (2026) Definition.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P42_S42_701.md)
- [48 C.F.R. § 42.702 (2026) Purpose.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P42_S42_702.md)
- [48 C.F.R. § 42.703-1 (2026) Policy.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P42_S42_703_1.md)
- [48 C.F.R. § 42.703-2 (2026) Certificate of indirect costs.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P42_S42_703_2.md)
- [48 C.F.R. § 42.704 (2026) Billing rates.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P42_S42_704.md)
- [48 C.F.R. § 42.705 (2026) Final indirect cost rates.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P42_S42_705.md)
- [48 C.F.R. § 42.705-1 (2026) Contracting officer determination procedure.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P42_S42_705_1.md)
- [48 C.F.R. § 42.705-2 (2026) Auditor determination procedure.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P42_S42_705_2.md)
- [48 C.F.R. § 42.705-3 (2026) Educational institutions.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P42_S42_705_3.md)
- [48 C.F.R. § 42.705-4 (2026) State and local governments.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P42_S42_705_4.md)
- [48 C.F.R. § 42.705-5 (2026) Nonprofit organizations other than educational and state and local governments.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P42_S42_705_5.md)
- [48 C.F.R. § 42.706 (2026) Distribution of documents.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P42_S42_706.md)
- [48 C.F.R. § 42.707 (2026) Cost-sharing rates and limitations on indirect cost rates.](https://www.frixlaw.com/law-library/statutes/CFR_T48_P42_S42_707.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T48_P42_S42_705. Check the current official text before relying on it. Not legal advice.