Acquisition Policy Flash! 16-05 - Office of Acquisition and Logistics (OAL)
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Acquisition Policy Flash! 16-05


Department of Veterans Affairs Contract Closeout

Purpose:  To remind Contracting Officers and Heads of Contracting Agencies within the Department of Veterans Affairs (VA) that in accordance with (IAW) FAR Subpart 42.302(a)(65) Contract Closeout is a part of contract administration.  Contract closeout must be accomplished IAW the requirements of FAR Subpart 4.804.

Federal Acquisition Regulation (FAR) and Veterans Affairs Acquisition Regulation (VAAR) Sections Impacted:  FAR Subpart 4.804 and FAR Subpart 42.302

Background:  Contract closeout is the final stage of the Government contracting process.  It can begin when the contract has been physically completed, and is not finished until final payment is made, any disputes settled, and all administrative actions required by the Federal Acquisition Regulation and specific agency procedures are completed.  It is the responsiblilty of the contracting office administering the contract to closeout the contract in accordance with the requirements of and time specified in FAR Subpart 4.804, Closeout of contract files.  OMB A123 Acquisition Assessments consistently found closeout of contract files was not timely and not accomplished in accordance with FAR Subpart 4.804.

Applicability:  This notice applies to contract specialist, warranted contracting officers, Head of Contracting Activities, and others in acquisition workforce performing contract closeout tasks.

Action Required: Members of the VA acquisition workforce must close-out contractual actions in a timely manner IAW FAR Subpart 4.804.  The time standards for closing out contract files IAW FAR Subpart 4.804-1 (a) are as follows:

(1) Files for contracts using simplified acquisition procedures should be considered closed when the contracting officer receives evidence of receipt of property and final payment, unless otherwise specified by agency regulations.

(2) Files for firm-fixed-price contracts, other than those using simplified acquisition procedures, should be closed within 6 months after the date on which the contracting officer receives evidence of physical completion.

Additionally, contracts will be closed in accordance with the close-out procedures required by the electronic contract writing system.

Additional Information:  Questions or concerns should be addressed to the Office of Acquisition and Logistics (003A), Procurement Policy and Warrant Management Service (003A2A) at (202) 632-5288 or