Effective May 20, 2021, The Department of Defense (DoD) issued a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS). The rule adds a new contract clause at DFARS 252.204-7022, Expediting Contract Closeout, and a prescription for the clause at DFARS 204.804-70. This final rule will allow government contractors to expedite the contract close out process by a waiver between the contractor and Government of entitlement to any residual dollar amounts that are due to either party at the time of contract closeout up to $1,000. As of the end of fiscal year 2020, according to the Government, there were an estimated 20,884 DoD contracts with total residual contract amounts valued at approximately $1,844,101 that meet the criteria for application of the rule.
Chess Consulting has successfully assisted government contractors with analyzing and summarizing cost data for a significant number of contracts spanning many years in support of final vouchers to the Government. We assist clients throughout the life cycle of a government contract including pre-award, post-award, and dispute-related matters. We bring to each engagement a unique combination of government contracting regulatory expertise, technical financial accounting and reporting knowledge, and an understanding of our client’s business processes, risks, and challenges.
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