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Breakout Session # 311 Jack R. Hott, CPCM, Fellow Manager, Data Systems & Practices Battelle Memorial Institu

Contract Closeout Basics for Buyers and Sellers. Breakout Session # 311 Jack R. Hott, CPCM, Fellow Manager, Data Systems & Practices Battelle Memorial Institute Vincent M. Krivda, CPCM, Fellow Senior Subcontracts Officer Battelle Memorial Institute

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Breakout Session # 311 Jack R. Hott, CPCM, Fellow Manager, Data Systems & Practices Battelle Memorial Institu

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  1. Contract Closeout Basics for Buyers and Sellers Breakout Session # 311 Jack R. Hott, CPCM, Fellow Manager, Data Systems & Practices Battelle Memorial Institute Vincent M. Krivda, CPCM, Fellow Senior Subcontracts Officer Battelle Memorial Institute Katherine A. WoodallStudent Intern, BGSU Battelle Memorial Institute Date April 16,2008 Time 2:40 – 3:40

  2. Important Closeout Questions • What is administrative closeout? • What is physically complete? • How do you know it is physically complete? • Are there any outstanding contract issues? • What actions are needed for administrative closeout? • How long do we have to close the contract? • When does the final invoice need submitted? • What needs to be on the final release?

  3. What is Administrative Closeout? • CLOSEOUT – The process of settling all outstanding issues to ensure that each party has met all of its obligations, and documenting the contract file accordingly. • The primary objects of contract closeout are: • To identify and resolve, before memories fade, any uncompleted obligations or pending liabilities on the part of either the Government or the contractor • To ensure that contract-related decisions and actions have been properly documented The Government Contracts Reference Book, Second Edition

  4. What is Physical Competition? • Physically Completed Contracts (FAR 4.804-4) • Required supplies delivered, inspected and accepted • All services performed and accepted • All options have expired

  5. How do You Know it is Physically Complete? • DD250 • Notice of Completion (NOC) • Period of Performance • Period of Performance • Receipt and Acceptance • Program Management Acknowledgement

  6. Are there any outstanding contract issues? • Request for Equitable Adjustments • Change Orders • Modifications • Contract Deliverables • Data Items (CDRL)

  7. What actions are needed for administrative closeout? • Property (property list, contractor acquired property) • Patent (DD882) • Security (DD254) • Small Business (SF294) • Subcontracts/Purchase orders/P-Cards closed

  8. How long do we have to close the contract? • Firm-Fixed-Price (SAP) when received and final paid • Firm-Fixed-Price 6 months • Others 20 months (i.e. FP-EPA) • Indirect rates required 36 months (TM, CPAF, CPF, CR) FAR 4.804-1 Note: Contractors do not have this much time.

  9. When does the final invoice need submitted? • 120 Day Submission Requirement (FAR 42.705(b) and 52.216-7 (d)(5)) • Special Contract Terms • Expiring Funds

  10. What needs to be on the final release? • Firm-Fixed Price vs. Other Contract Types • Release vs. Contingent Release (FAR 52.216-7 (h)) • Refunds and Rebates

  11. Conclusion • Administrative closeout is a critical element of the contract lifecycle • Understanding when a contract is physically complete is an essential first step • Each closeout is unique • Timely closeout makes good business sense to both parties

  12. Conclusion – The Real Bottom Line CLOSEOUT BEGINS WHEN THE CONTRACT IS AWARDED!

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