Common use of CERTIFICATION OF FINAL Clause in Contracts

CERTIFICATION OF FINAL. INDIRECT COSTS New policy regarding indirect costs has been issued as Federal Highway Administration (FHWA) Order 4470.1A dated October 27, 2010. This policy requires contractors to certify that costs in accordance with the applicable cost principles contained in the Federal Acquisition Regulations Title 48, Code of Federal Regulations Part 31 were used to establish indirect cost rates for application to Federal-aid engineering and design-related services contracts (as defined in 23 U.S.C. 112(b) (2) (A), 23 CFR 172.3, and State/Local laws and regulations). The FHWA has directed that engineering and design-related consultant services contracts procured, awarded, or modified after January 1, 2011, should have a contractor certification of the allowability of costs used to establish the final indirect cost rate in accordance with FAR cost principles for the applicable term of the contract, or verification that this certification was previously submitted and accepted by the contracting agency. This rate will also be used for contract estimation, negotiation, administration, reporting and payment purposes. The enclosed Certification of Final Indirect Costs Form must be submitted by each Consultant firm with each yearly or interim Overhead Rate submission whether it is prepared by an independent CPA firm, or as a “firm-prepared” indirect cost rate. A contractor found to have knowingly charged unallowable costs to a Federal-aid funded agreement is subject to suspension and debarment actions by the FHWA (as specified in FHWA Order 2000.2A, FHWA Non-procurement Suspension and Debarment Process (Federal-Aid Program) dated June 19, 2000, and 2 CFR 180). Failure to provide the completed Certification form with the annual indirect cost rate submissions will also place the firm in a non-compliant status with NJDOT. The Order is available on FHWA’s Consultant Services web site at xxxx://xxx.xxxx.xxx.xxx/programadmin/consultant.cfm.