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Contract Closeout

This SOP has internal roles only.

Some links will work for NIAID staff only.

Standard Operating Procedure Table of Contents

Purpose
Procedure
Contacts
Links

Purpose

To administratively close a contract after it is completed, including certifying that all services and deliverables are satisfactory and all costs have been settled.

Procedure

Contracts are physically complete when contractors have rendered all services and the government has accepted all documents, materials, data, and other deliverables. Contracts are administratively complete when all administrative activities have been accomplished, releases executed, and final payment made.

Files for firm-fixed-price contracts, other than those using simplified acquisition procedures, should be closed within six months after the date on which the contracting officer receives evidence of physical completion.

Files for contracts requiring settlement of indirect cost rates should be closed within 36 months of the month in which the contracting officer receives evidence of physical completion.

Files for all other contracts should be closed within 20 months of the month in which the contracting officer receives evidence of physical completion.

A contract file shall not be closed if the contract is in litigation or under appeal or if all termination actions have not been completed.

NIAID retains completed contract files in the main DEA contract and grant contract file room for two years after a final voucher is received, if the contract file has been closed by the closeout staff. Then, the contract files are moved to the Washington National Records Center where they are retained for four years and three months. They may be destroyed six years and three months after the final voucher has been received and paid.

Contract Specialists

At least three months before contract completion, begin preparing for closeout.
Within 90 days after contract completion:
- Obtain a completed Project Officer's Evaluation of Progress Report form from the project officer, documenting review and acceptance of the Final Technical Progress Report.
- Obtain a completed Project Officer Certification (NIH 2553) from the project officer, certifying that the contractor has satisfactorily performed the work requirements of the contract.
- Complete a Final Contractor Performance Evaluation using the NIH Contractor Performance System.
- File the Final Technical Progress Report with the signed Project Officer's Evaluation of Progress Report and Project Officer Certification. Place both documents on top of the Final Technical Progress Report.
- Receive a final Subcontracting Report for Individual Contracts (SF-294) in the Electronic Subcontracting Reporting System. Review the SF-294 and either accept or reject the report.
- Complete a Subcontracting Compliance Memo.
- Complete a Contracting Officer's Memo stating the disposition of property and animals, if applicable.
- Ensure a copy of the invoice spreadsheet is located on the “R:” drive. Click on the “R:” drive; select the “OA Invoice” spreadsheets and then the “CMB” spreadsheets. Save a copy of your invoice spreadsheet in this folder. Forward the contract file to the closeout administrator.
Upon return of the completed contract file, process the in-house modification drafted by the closeout administrator if funds are de-obligated or refunds are returned to the Office of Acquisitions and then administratively close out the contract in DCIS. If funds are not involved, the contract specialist is still required to administratively close out the contract in DCIS.
Provide the contract file to the OA branch chief and contracting officer to review, execute the in-house modification, and sign the required closeout forms. Return the contract file to the closeout administrator.

Project Officers

Complete the technical portions of the Final Contractor Performance Evaluation using the NIH Contractor Performance System.
Review the final technical progress report; complete the Project Officer's Evaluation of Progress Report Form, and submit the completed form to the contract specialist.
Instruct the contract specialist about the disposition of property and animals, if applicable.
Review and recommend approval of the completion and final vouchers.
Complete the Project Officer Certification (NIH 2553) within 90 days after the contract is completed and submit it to the contract specialist.

Closeout Administrators

Receive contract file from contract specialist.
Maintain completed contracts, assuring all forms listed in the Checklist for Contract Closure are completed and included in the contract file.
Initiate contract closeout by sending contractors a Completion Letter.
Obtain a statement from contractors indicating that each subcontract has been settled.
Obtain a final property inventory from contractors.
Obtain a contract property administration completion report (NIH 488) from the property administrator.
Receive final negotiated indirect cost (IDC) agreements for the contract period of performance.
Perform a desk audit using the Desk Audit Template. Remember to save a copy of the Template to your personal computer before populating the Template. See the completed Sample Desk Audit.
Process all vouchers using predetermined or final IDC rates and cross check all vouchers against the Data Warehouse spread sheet.
Send a determination of cost letter.
Settle interim and disallowed costs.
De-obligate excess funds, if applicable.
Obtain a Contractor's Certification -- General Provisions.
Obtain a Contractor's Release for All Contracts (NIH 2582).
Obtain a Contractor's Assignment of Refunds, Rebates, and Credits (NIH-1943).
Complete Completion Statement.
Complete Final Certification.
If funds are de-obligated or refunded, draft an “in-house” contract modification.
After receiving closeout documentation, give contract file and documentation to the senior closeout administrator. Then forward to the appropriate OA branch chief for review.

For more information on closeout administrator responsibilities, see the Office of Acquisitions closeout manual (hard copy only).

OA Branch Chiefs and Contracting Officers

Receive completed contract file from closeout administrators.
Assign the contract file to a contract specialist to process an in-house modification, if funds are to be de-obligated or refunds are to be returned to OA and to administratively close out the contract in DCIS.
Upon receipt of the contract file back from the contract specialist, review the contract file, execute the in-house modification, and sign the required closeout forms.
Return signed closeout forms with the contract file to the closeout administrator. The closeout administrator must be contacted to pick up the contract file. This process must be completed within 14 working days of initial receipt of the contract file from the closeout administrator.

Note the difference between a completion voucher and a final voucher. A completion voucher is received shortly after a contract is completed; a final voucher is due within one year after contract completion and is for a final payment.

Contacts

Staff Only Contact

Contract Specialists: Staff Only Contact and Staff Only Contact

Closeout Administrators: Staff Only Contact and Staff Only Contact

See the public Office of Acquisitions staff listing for list of contract specialists and branch chiefs.

If you have knowledge to share or want more information on this topic, email deaweb@niaid.nih.gov with the title of this page or its URL and your question or comment. Thanks for helping us clarify and expand our knowledge base.