PNWC's Government Contracting Update

The Contract Closeout Tsunami | PNWC’s Government Contracting Update

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What does it take to close out a contract? A lot, actually. FAR (Federal Acquisition Regulations) 4.804-5 lays out the steps that must be completed before a contract can be officially closed. Although the process is within the responsibility of the contract administration office, most of the steps require some involvement or input by the contractor. Let’s look at some of the steps:

  1. Disposition of classified material is completed
  2. Final patent and royalty reports are cleared
  3. There are no outstanding value engineering change proposals
  4. Plant clearance report is received
  5. Property clearance is received
  6. All interim or disallowed costs are settled
  7. Price revision is completed
  8. Subcontracts are settled by the prime contractor (don’t underestimate this requirement)
  9. Prior year indirect cost rates are settled
  10. Termination docket is completed
  11. Contract audit is completed
  12. Contractor’s closing statement is completed
  13. Contractor’s final invoice has been submitted, and
  14. Contract funds review is completed and excess funds deobligated.

Source: PNWC’s Government Contracting Update: The Contract Closeout Tsunami

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