Overview
This section outlines the mandatory procedures for distributing finalized indirect cost rate agreements and their supporting documentation to all relevant government stakeholders and the contractor.
Key Rules
- Distribution Responsibility: The contracting officer or auditor must promptly provide executed copies of the indirect cost rate agreement to the contractor and every affected contracting agency.
- Documentation Standards: Agreement copies must be maintained in contract files following the specific distribution guidance for contract modifications found in FAR subpart 4.2.
- Supporting Records: Negotiation memorandums (for CO determinations) or audit reports (for auditor determinations) must be shared with the relevant contracting and government audit offices.
Practical Implications
- Uniformity: This ensures that all agencies doing business with a specific contractor apply the same negotiated indirect rates, preventing conflicting cost applications across the government.
- Audit Readiness: By formalizing the distribution of negotiation memos, the regulation creates a transparent audit trail necessary for contract closeouts and future price proposals.