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Contract Closeout

Contract Closeout. Agenda. Contract closeout Involvement of key players in closeout process Develop a check list and a team Understand the types of contracts and the timeframes required for closeout. Know the appropriation life cycle Common closeout barriers Expediting contract closeout

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Contract Closeout

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  1. Contract Closeout

  2. Agenda • Contract closeout • Involvement of key players in closeout process • Develop a check list and a team • Understand the types of contracts and the timeframes required for closeout. • Know the appropriation life cycle • Common closeout barriers • Expediting contract closeout • Discussion

  3. Life Cycle of a Contract – Procure to Pay Contract Performance and Administration Title Funding Pre Contract Structure/Award Contract Closeout

  4. Contract Closeout Key Players Services Additional Funding Property Disposition Replacement Funds Product Acceptance Funds Management Negotiation of Rates Complete all Closeout Actions DCAA DCMA Final OH Rates Indirect Cost Audits CACWS Final Voucher Review ONE FOCUS Indirect Cost Rate Prop Year End Rate Adjustments Final Invoice//Vouchers Settle Subcontracts Reconciliations Part B (FFP<100K) Final Payment Industry DFAS

  5. Major Steps in Contract Closeout 7. Dispose of contract file 6. Prepare contract completion statement 5. Deobligate excess funds / request additional funds 4. Initiate final payment to or collection of overpayment from contractor 3. Resolve all outstanding issues 2. Obtain all forms, reports, and clearances, for closeout 1. Verify that contract is physically complete

  6. Time Standard FAR 4.804 • FAR 4.804-3 directs payment office to close contract upon issuance of final payment voucher

  7. Appropriation Life Cycle Expired Current/Available Cancelled Available for Funding Available for Obligation and Payment Must Obtain New Funding Payment

  8. Common Closeout Barriers • Contractor Submission Delays • Delinquent incurred cost proposals • Awaiting Subcontractor Submissions • Submission of Final Cost Vouchers • Delayed Negotiation of Overhead Rates • Payment Delays • Contract Writing • Canceled Funds • Reconciliation Issues

  9. Contract Closeout Excess Funds Process Flow The ACO deobligates excess funds after final price determination; ensure funding is in accordance with contract terms The excess funds available for deobligation are removed by contract modification (SF 30) after PCO permission The ACO reviews unliquidated obligations (ULOs) against open and cancelled appropriations Excess funds do NOT include “remaining” funds due to price variance, rounding, or cost underrun funding The PCO is notified of the contract closeout by a MILCAP EDI (electronic) or a DD form 1594 (manual) Systemic deobligation of remaining funding is handled under the Q-Final process in MOCAS * Request closeout contract payment history at cco-reconciliation-maillog@dfas.mil

  10. Resources • DCMA Homepage: • www.dcma.mil • DCMA Contract Closeout Page: • http://home.dcma.mil/cntr-dcmac-m/index.htm • DCAA Homepage: • www.dcaa.mil • FAR Home Site • www.arnet.gov/far

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