4.804
Closeout of contract files
FAR 4.804 establishes clear procedures and responsibilities for closing out contract files to ensure all obligations are met and records are properly maintained.
Overview
FAR 4.804 outlines the requirements and procedures for the closeout of contract files, ensuring that all administrative actions are completed, all disputes are resolved, and final payments are made. The section details responsibilities for the office administering the contract, the contracting office (when another office administers), and the paying office. It also defines when a contract is considered physically complete and prescribes step-by-step procedures for closing out contract files. The goal is to maintain proper records, ensure compliance, and facilitate audits or reviews.
Key Rules
- Closeout by Administering Office
- The office administering the contract is primarily responsible for closing out contract files once all contractual obligations are met.
- Closeout by Contracting Office
- If another office administers the contract, the contracting office must close its own files after receiving necessary documentation.
- Closeout by Paying Office
- The paying office must close its files after final payment and resolution of any payment issues.
- Physically Completed Contracts
- Contracts are considered physically complete when all required supplies/services are delivered and accepted, and all options are exercised or expired.
- Closeout Procedures
- Specific procedures must be followed to ensure all administrative actions, payments, and documentation are finalized before file closure.
Responsibilities
- Contracting Officers: Ensure all closeout actions are completed, documentation is accurate, and files are closed in accordance with FAR procedures.
- Contractors: Fulfill all contractual obligations, submit required deliverables, and resolve any outstanding issues to facilitate closeout.
- Agencies: Oversee the closeout process, maintain records, and ensure compliance with FAR requirements.
Practical Implications
- This section ensures contract files are properly closed, reducing risk of unresolved issues and facilitating future audits.
- Delays in closeout can impact agency operations and contractor payments.
- Proper closeout is essential for compliance, accountability, and efficient contract administration.