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Due six months after year end, every year
If you hold cost-reimbursement, time-and-materials or other flexibly priced contracts, the Allowable Cost and Payment clause (FAR 52.216-7) generally requires a final indirect cost rate proposal within six months after the end of each fiscal year. For a calendar-year contractor, that is June 30.
An adequate submission includes your indirect rate calculations, allocation bases, direct costs by contract, cumulative contract costs, and a signed Certificate of Final Indirect Costs, with unallowable costs removed. Late or inadequate submissions can lead to withheld payments, unilateral rate decisions and delayed contract closeout.
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