FAR 42.709-5 Computing Interest
Subsection Federal Acquisition Regulation
Facts
- Citation
- FAR 42.709-5
- Type
- Subsection
- Last amended
- 86 FR 44255 Effective Sep 10, 2021
- Text as of
- FAC 2026-01
- Official text
- acquisition.gov
Text from acquisition.gov. Federal Register history from the Federal Register's records of the rules that amended this subsection.
Text
For 42.709-2(a)(1)(ii), compute interest on any paid portion of the disallowed cost as follows:
(a) Consider the overpayment to have occurred, and interest to have begun accumulating, from the midpoint of the contractor’s fiscal year. Use an alternate equitable method if the cost was not paid evenly over the fiscal year.
(b) Use the interest rate specified by the Secretary of the Treasury pursuant to Pub.L.92-41 (85 Stat. 97).
(c) Compute interest from the date of overpayment to the date of the demand letter for payment of the penalty.
(d) Determine the paid portion of the disallowed costs in consultation with the contract auditor.
Federal Register history
| Final rule | Published | Effective |
|---|---|---|
| Federal Acquisition Regulation; Technical Amendments |
Sections cited
- FAR 42.709-2(a)(1)(ii) General
Quick answers
What is FAR 42.709-5?
FAR 42.709-5 is a subsection of the Federal Acquisition Regulation, titled "Computing Interest".
When was FAR 42.709-5 last changed?
The most recent final rule on record is "Federal Acquisition Regulation; Technical Amendments" (86 FR 44255), published Aug 11, 2021 and effective Sep 10, 2021.
Are changes to FAR 42.709-5 proposed?
No proposed rule from the last 3 years is waiting on a final rule.
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