The document discusses contract closeout procedures. It explains that contract closeout verifies both parties fulfilled obligations, assesses success, and identifies lessons. A contract is ready for closeout when all goods/services are received/accepted, reports delivered/accepted, administrative actions completed, equipment returned, and final payment made. Closeout ensures all work is completed, payments made, property issues resolved, records compliance, and deficiencies documented for communication. It provides examples of issues that can arise like performance bonds, payment bonds, and retainage.

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2.  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
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3. 1. To verify that both parties fulfilled their
contractual obligations.
2. To assess the success of the contract and
lessons learned for future contracting.
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4.  It is usually a simple, but detailed
administrative procedure agencies should
perform after the contract is completed.
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5.  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.
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6.  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
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7.  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.
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8.  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.
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9.  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
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10.  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.
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11.  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.
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