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.

Contract Closeout

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Updated: 7/17/2017

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