FAR 49.303-4 Adjustment of indirect costs
Subsection Federal Acquisition Regulation
Facts
- Citation
- FAR 49.303-4
- Type
- Subsection
- Proposed changes
- 1
- 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
(a) If the contract contains the clause at 52.216-7, Allowable Cost and Payment, and it appears that adjustment of indirect costs will unduly delay final settlement, the TCO, after obtaining information from the appropriate audit agency, may agree with the contractor to-
(1) Negotiate the amount of indirect costs for the contract period for which final indirect cost rates have not been negotiated, or to use billing rates as final rates for this period if the billing rates appear reasonable; or
(2) Reserve any indirect cost adjustment in the final settlement agreement, pending establishment of negotiated rates under subpart 42.7.
(b) When an amount of indirect cost is negotiated under paragraph (a)(1) of this section, the contractor shall eliminate the indirect cost and the related direct costs on which it was based from the total pool and base used to compute indirect costs for other contracts performed during the applicable accounting period.
Proposed changes
| Proposed rule | Published | Comments |
|---|---|---|
| Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 3 and 49 | Closed Jul 23, 2026No final rule found |
Sections cited
- FAR 52.216-7 Allowable Cost and Payment
- FAR Subpart 42.7 Indirect Cost Rates
Quick answers
What is FAR 49.303-4?
FAR 49.303-4 is a subsection of the Federal Acquisition Regulation, titled "Adjustment of indirect costs".
Are changes to FAR 49.303-4 proposed?
One proposed change has no final rule yet.
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