kdjenkins

Sorry if my post has been confusing! Under a cost-reimbursement contract, final indirects must be settled in order for the vendor to submit an invoice for final contract payment. If the indirects have not been settled and the contract not closed out, the vendor would be required to keep all contract files and documentation to support the final billing. DCAA is running approx 3 - 5 yrs behind in closing out indirects which affects final contract payment and contract closeout. Therefore, in this situation, if final contract payment has not occurred, the records retention issue is moot and does not kick-in until the final contract payment actions has occurred. Am I off base or at least in the ball park? Thanks!!

Hey Vern - Thanks for the response. I have been an admirer of your work since I attended some of your classes at GW. I believe the issue centers around "final contract payment". FAR 4.7 references the FAR Clause 52.215-2 (Audit and Records - Negotiation) regarding applicability. This clause as well as 52.216-7 (Allowable Cost and Payment) were included in the contract. Paragraph (h) of 52.217-7 states that a condition of final contract payment under a CR contract is the approval of the invoice/voucher reflecting the settled amounts and rates for final annual indirect cost rates for all years physically completed. Therefore, if this has not occurred, then final contract payment is still pending, correct?

My organization used another Govt agency's fee-for-service contracting activity. A CPFF task order was issued. An inquiry was made by an investigative arm of the Govt regarding records retention. The Other Govt Agency's CO stated that the records only needed to be maintained 3 yrs after final contract payment and since performance had been completed more than 3 yrs ago, the vendor was not required to keep records. The problem is that 1) the TO is CPFF; 2) final indirects have not yet been established; and 3) formal contract closeout has not occurred. Based on the above, I believe (and know) that the CO is mistaken since final contract payment could not have yet been made (regardless of performance) since the indirects have not yet been settled. Is my rationale and logic correct based on the scenario?