Transcript Slide 1
NORTH REGIONAL CONTRACTING OFFICE CONTRACT CLOSEOUT 13 January 2010 CONTRACT COMPLETITION A contract is completed and ready for closeout when: • Physically completed • Final Payment has been made CLOSEOUT TIME FRAMES FAR 4.804.1 • Simplified Acquisition Procedures should be closed upon receipt of evidence of completition and final payment. • Firm-Fixed Price (FFP) contracts other than those using simplified acquisition procedures, should be closed within six (6) months after the date the Contracting Officer receives evidence of physical completition. • Contracts requiring settlement of indirect cost rates should be closed within thirty- six (36) months of month in which the Contracting Officer receives evidence of physical completition. • All other contracts should be closed within twenty (20) months of the month in which the Contracting Officer received evidence of physical completition. PHYSICALLY COMPLETED CONTRACTS FAR 4.804-4 A contract is Physically Completed when: • Contractor has completed required deliveries and the Government has inspected and accepted the supplies; • Contractor has performed all services and the Government has accepted these services; and • All option provisions, if any, have expired. • Government has given the Contractor notice of complete contract termination. or • Rental, use, and storage agreements are considered to be physically completed when— (1) The Government has given the contractor a notice of complete contract termination; or (2) The contract period has expired. PROCEDURES FOR CLOSING OUT CONTRACT FILES FAR 4.804-5 A contract is ready for Closeout when you ensure that the following, as applicable, are resolved: • Deobligate any excess funds (must be done by modification to the contract/delivery order/task order as it applies); • Disposition of classified material is completed; • Final patent report is cleared; • Final royalty report is cleared; PROCEDURES FOR CLOSING OUT CONTRACT FILES FAR 4.804-5 (Continued) • There is no outstanding value engineering change proposal; • Plant Clearance Report is received; • Property Clearance is received; • All Interim or Disallowed Costs are settled; • Price revision is completed; • Subcontractors are settled by the Prime Contractor; PROCEDURES FOR CLOSING OUT CONTRACT FILES FAR 4.804-5 (Continued) • Prior year indirect cost rates are settled; • Termination docket is completed; • Contractor Audit is completed; • Contractor’s closing statement is completed; • Contractor’s final invoice has been submitted; • Contract funds review is completed and excess funds deobligated. WHEN NOT TO CLOSEOUT A CONTRACT A contract shall not be closed if: • It is in litigation or under appeal • In the case of termination, all termination actions have not been completed • Applicable items on previous charts have not been completed CLOSEOUT BY THE OFFICE ADMINISTERING THE CONTRACT PGI 204.804-1 • For contracting offices administering their own contracts, locally developed forms or a statement of completion may be used instead of the DD Form 1594, Contract Completion Statement. Whichever method is used, the form shall be retained in the official contract file. • For contracts valued above the simplified acquisition threshold, prepare a DD Form 1597, Contract Closeout Check List (or agency equivalent), to ensure that all required contract actions have been satisfactorily accomplished. CONTRACT COMPLETITION STATEMENT When the actions from the previous slides have been verified, the contracting officer administering the contract must ensure that a contract completion statement, containing the following information, is prepared: • Contract administration office name and address (if different from the contracting office). • Contracting office name and address. • Contract number. • Last modification number. • Last call or order number. • Contractor name and address. • Dollar amount of excess funds, if any. • Voucher number and date, if final payment has been made. • Invoice number and date, if the final approved invoice has been forwarded to a disbursing office of another agency or activity and the status of the payment is unknown. • A statement that all required contract administration actions have been fully and satisfactorily accomplished. • Name and signature of the contracting officer. • Date. CONTRACT COMPLETITION STATEMENT (Continued) • When the statement is completed, the Contracting Officer must ensure that— • The signed original is placed in the contracting office contract file (or forwarded to the contracting office for placement in the files if the contract administration office is different from the contracting office); and • A signed copy is placed in the appropriate contract administration file if administration is performed by a contract administration office. STORAGE, HANDLING, AND DISPOSAL OF CONTRACT FILES FAR 4.805 • • Agencies must prescribe procedures for the handling, storing, and disposing of contract files. These procedures must take into account documents held in all types of media, including microfilm and various electronic media. Agencies may change the original medium to facilitate storage as long as the requirements of Part 4, law, and other regulations are satisfied. The process used to create and store records must record and reproduce the original document, including signatures and other written and graphic images completely, accurately, and clearly. Data transfer, storage, and retrieval procedures must protect the original data from alteration. Unless law or other regulations require signed originals to be kept, they may be destroyed after the responsible agency official verifies that record copies on alternate media and copies reproduced from the record copy are accurate, complete, and clear representations of the originals. Agency procedures for contract file disposal must include provisions that the documents specified in paragraph (b) of this section may not be destroyed before the times indicated, and may be retained longer if the responsible agency official determines that the files have future value to the Government. When original documents have been converted to alternate media for storage, the requirements in paragraph (b) of this section also apply to the record copies in the alternate media. If administrative records are mixed with program records and cannot be economically segregated, the entire file should be kept for the period of time approved for the program records. Similarly, if documents described in the following table are part of a subject or case file that documents activities that are not described in the table, they should be treated in the same manner as the files of which they are a part. The retention periods for acquisitions at or below the simplified acquisition threshold also apply to acquisitions conducted prior to July 3, 1995, that used small purchase procedures. The retention periods for acquisitions above the simplified acquisition threshold also apply to acquisitions conducted prior to July 3, 1995, that used other than small purchase procedures. QUICK-CLOSEOUT PROCEDURES FAR 42.708 The contracting officer responsible for contract closeout shall negotiate the settlement of indirect costs for a specific contract, in advance of the determination of final indirect cost rates, if— • The contract is physically complete; • The amount of unsettled indirect cost to be allocated to the contract is relatively insignificant. Indirect cost amounts will be considered insignificant when— The total unsettled indirect cost to be allocated to any one contract does not exceed $1,000,000; and • Unless otherwise provided in agency procedures, the cumulative unsettled indirect costs to be allocated to one or more contracts in a single fiscal year do not exceed 15 percent of the estimated, total unsettled indirect costs allocable to cost-type contracts for that fiscal year. The contracting officer may waive the 15 percent restriction based upon a risk assessment that considers the contractor’s accounting, estimating, and purchasing systems; other concerns of the cognizant contract auditors; and any other pertinent information; and • Agreement can be reached on a reasonable estimate of allocable dollars. • Determinations of final indirect costs under the quick-closeout procedure provided for by the Allowable Cost and Payment clause at 52.216-7 shall be final for the contract it covers and no adjustment shall be made to other contracts for over- or under-recoveries of costs allocated or allocable to the contract covered by the agreement. • Indirect cost rates used in the quick closeout of a contract shall not be considered a binding precedent when establishing the final indirect cost rates for other contracts.