Question
Acontractorcompletesperformanceofa$1,000,000cost-reimbursementcontractthatincludes the contract clause at FAR 52.242-3 and submits (a) its proposal for final indirect costratesand(b)acertificateoffinalindirectcosts.Duringanalysisoftheproposaltheadministrativecontracting officer (ACO) discovers that the proposal includes $10,000 of
Acontractorcompletesperformanceofa$1,000,000cost-reimbursementcontractthatincludes the contract clause at FAR 52.242-3 and submits (a) its proposal for final indirect costratesand(b)acertificateoffinalindirectcosts.Duringanalysisoftheproposaltheadministrativecontracting officer (ACO) discovers that the proposal includes $10,000 of indirect costs that areexpresslyunallowableunderFARcostprinciples,butthathavenotpreviouslybeendeterminedtobeunallowable.Asyet,nopartoftheunallowablecostshasbeenpaid.
A.Answer thefollowingquestions:
1.Whatifanydollaramountofpenalty musttheACOassessthecontractorforincludingtheunallowablecostsinitsfinalindirectcostrateproposal?
2.WhatFARcitation(be specificandcomplete)supports youranswer?
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