What is a contract closeout and its

purpose?
When is a contract completed?
When is a contract ready for closeout?
What are some specific issues that can
occur during a contract closeout?
Contract closeout checklist

1.

To verify that both parties fulfilled their

contractual obligations.

2.

To assess the success of the contract

and lessons learned for future
contracting.

It is usually a simple, but detailed

administrative procedure agencies
should perform after the contract is
completed.

All goods and services have been received

and accepted;
All reports have been delivered and
accepted;
All administrative actions have been
accomplished;
All agency-furnished equipment and
material have been returned;
And final payment has been made to the
contractor.

All services have been satisfactorily performed, and all

products have been delivered and accepted by the agency ;

Final payment has been made;

All property, inventory, and ownership issues are resolved

including disposition of any equipment or licenses purchased
under the contract;

Contractor is aware of and is in compliance with records

retention requirements and a plan has been developed for
contract file maintenance;

Any deficiencies found as part of the closeout process are

documented and communicated to all appropriate parties

A performance bond is a surety bond

issued by an insurance company or a
bank to guarantee satisfactory
completion of a project by a contractor.

A payment bond is a surety bond

posted by a contractor to guarantee
that his subcontractors and material
suppliers on the project will be paid.

Retainage is a portion of the agreed upon

contract price deliberately withheld until the
work is substantially complete to assure that
contractor or subcontractor will satisfy its
obligations and complete a construction project.

This usually occurs in construction contracts

where a 10% retainage is typically withheld and
not due until the work is substantially complete.

Establishing a new contract creates a range of

issues and potential risks that need to be
managed.
Transition Plan

Executive Summary
Transition Approach
Team Organization
Work Execution
Subcontractors
Property
Knowledge Transfer
Schedule
Handover and Acceptance

Any deficiencies found as part of the closeout

process are documented and communicated
to all appropriate parties
Vendor Performance Tracking System

Exceptional performance
Unethical business practices
Repeated delivery and performance issues

Report vendor performance on purchases

$25,000 or greater
The scope & accuracy of the data collected is
dependent upon the participation of
agencies.

All products or services required were provided to the

buyer.
Documentation adequately shows receipt and formal
acceptance of all contract items.
No claims or investigations are pending on this
contract.
Any buyer-furnished property or information was
returned to the buyer.
All actions related to contract price revisions and
changes are concluded.
All outstanding subcontracting issues are settled.
If a partial or complete termination was involved,
action is complete.
Any required contract audit is now complete.