Contracts & Legal
Contract CloseoutAdd to favorites
A Contract Closeout occurs when a contract has met all the terms of a contract and all administrative actions have been completed, all disputes settled, and final payment has been made. This includes those administrative actions that are contractually required; i.e. property, security, patents and royalties. The procedures for contract closeout are located in Federal Acquisition Regulation (FAR) 4.804-5.
Below is the checklist for administrative actions that are required to close out a contract that has met all its terms and conditions.
- Issue interim contract completion statement
- Ensure disposition of classified material is completed
- Receive final patent/royalty report clearance
- Ensure there are no outstanding value engineering change proposals
- Ensure property clearance is recorded in MOCAS
- Receive and file plant clearance report
- Settle all interim or disallowed costs
- Complete price revision
- Ensure Prime contractor has settled Subcontracts
- Settle prior year indirect cost rates
- Ensure submission of final subcontracting plan report
- Complete termination docket
- Completed contract audit
- Ensure receipt of contractor’s closing statement (release)
- Review/submit contractor’s final invoice/voucher
- Ensure final voucher has been paid
- Complete contract funds review and deobligate excess funds
The standard timeframes for closing out are located in the FAR 4.804.
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