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.
Contract Closeout Procedures
The procedures for contract closeout are located in Federal Acquisition Regulation (FAR) 4.804-5.
Contract Closeout Checklist
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 the final voucher has been paid
- Complete contract funds review and deobligate excess funds
Contract Closeout Timeframe
The standard timeframes for closing out are located in FAR 4.804.
Contract Closeout Retention Periods
| Records | Retention Period |
| (1) Contracts (and related records or documents, including successful and unsuccessful proposals, except see paragraph (c)(2) of this section regarding contractor payrolls submitted under construction contracts). | 6 years after final payment. |
| (2) Contractor’s payrolls submitted under construction contracts in accordance with Department of Labor regulations (29 CFR 5.5(a)(3)), with related certifications, anti-kickback affidavits, and other related records. | 3 years after contract completion unless contract performance is the subject of an enforcement action on that date (see paragraph (c)(8) of this section). |
| (3) Unsolicited proposals not accepted by a department or agency. | Retain in accordance with agency procedures. |
| (4) Files for canceled solicitations. | 6 years after cancellation. |
| (5) Other copies of procurement file records used for administrative purposes. | When business use ceases |
| (6) Documents pertaining generally to the contractor as described at 4.801(c)(3) | Until superseded or obsolete. |
| (7) Data submitted to the Federal Procurement Data System (FPDS). Electronic data file maintained by fiscal year, containing unclassified records of all procurements exceeding the micro-purchase threshold, and information required under 4.603. | 6 years after submittal to FPDS |
| (8) Investigations, cases pending or in litigation (including protests), or similar matters (including enforcement actions). | Until final clearance or settlement, or, if related to a document identified in paragraphs (c)(1) through (7) of this section, for the retention period specified for the related document, whichever is later. |
| FAR 4.805.4(c) | |
AcqLinks and References:
- Website: FAR 4.804-5 Contract Closeout
- Website: DCMA Contract Closeout Guidebook
- Acquisition Institute Contract Closeout Guidebook – Oct 07
- DoD Procedures for Settling Financial Accounts Under the Special Temporary Contract Closeout Authority – Oct 2005
- GSA Contract Closeout Quick Reference Guide
- Example: Army SADDM Chapter 6 Contract Closeout
Updated: 6/22/2021
Rank: G1