Contract Closeout Guide - Attachment 6 Advance Agreement - Template and Instructions
Once an agreement is reached for the final rate, the CO should prepare an advance agreement. Both the contractor and the CO should sign the agreement. A sample Advance Agreement follows:
QUICK CLOSEOUT AGREEMENT with XYZ COMPANY
1. This agreement is entered into by and between the Office of Acquisition and Grants Management [name of office], a Centers for Medicare and Medicaid Services activity and XYZ COMPANY organized and existing under the laws of [State], having offices in [City].
2. This agreement is entered into under the authority of Federal Acquisition Regulation (FAR) 42.708, “Quick-Closeout Procedure” and FAR 52.232-7 “Payments under Time-and-Materials and Labor-Hour Contracts” and/or FAR 52.216.7 “Allowable Cost and Payment.”
3. The purpose of this agreement is to set forth indirect cost rates for fiscal year ____ to be assessed against: “other direct costs” only, which are included in contracts priced on a time and material basis (unless otherwise specified in the contracts) and/or appropriate direct costs only, which are included in contracts priced on a cost plus fixed fee basis (unless otherwise specified in the contracts).
These contracts will be closed prior to the establishment of indirect cost rates for fiscal year ______. The subsequent audit of and the establishment of final indirect cost rates for this year will have no affect on the final price and closure of these contracts. There will be no adjustments made to other contracts for over or under recoveries of costs allocated to the contracts covered by this agreement.
FISCAL YEAR: ____
OVERHEAD RATE: 124.28%
G&A RATE: 11.57%
Establishment of these rates shall not be considered a binding precedent when establishing the final indirect cost rates for other contracts.
4. Upon full execution of this agreement, XYZ Company will perform audits of the affected contracts and reconcile all applicable accounts using the indirect cost rates established herein. Once this is accomplished, or within thirty (30) days after full execution of this agreement, whichever is sooner, XYZ Company will submit to the Contracting Officer, a final voucher for each of the affected contracts.
5. It is understood and agreed that the affected contracts are physically complete. It is also understood and agreed that the amount of redeterminable indirect costs associated with any one of the affected contracts is less than $1,000,000.00 and the total amount of determinable indirect costs to be allocated to the affected contracts in 2002 is less than 15% of the total redeterminable indirect in that year.
6. Notwithstanding the provisions of paragraph 3, 4 and 5 above, this agreement shall not change any monetary ceiling, contract obligation or specific allowance or disallowance established by the terms and conditions of the affected contracts.
IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed by its duly authorized representative.
OFFICE OF ACQUISITION AND GRANTS MANAGEMENT
CENTERS FOR MEDICARE AND MEDICAID SERVICES