contract closeout rebecca beck director of finance - dfas columbus
TRANSCRIPT
Contract Closeout
Rebecca Beck
Director of Finance - DFAS Columbus
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Overview
• Contract Life Cycle
• Key Players
• Major Steps in Closeout Process
• Time Standards
• Appropriation Life Cycle
• Common Barriers
• How Can You Help?
• Initiatives
• Disconnect with Accounting
• Excess Funds
• Resources
• Group Discussion
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Funding
Life Cycle of a Contract – Procure to Pay
Pre ContractStructure/Award
Pre ContractStructure/Award
Contract Performanceand Administration
Contract Performanceand Administration
Contract CloseoutContract Closeout
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ONE FOCUS
Additional Funding
Property Disposition
Replacement Funds
Product Acceptance
Services
Final OH Rates
Indirect Cost Audits
CACWS
Final Voucher
Review
Indirect Cost Rate Prop
Year End Rate Adjustments
Final Invoice//Vouchers
Settle Subcontracts
Industry
DC
AA
Contract Closeout Key Players
DFAS
DC
MA Funds
Management Negotiation of
RatesComplete all
Closeout Actions
Reconciliations Part B (FFP<100K)
Final Payment
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Major Steps in Contract Closeout
1. Verify that contract is physically complete
2. Obtain all forms, reports, and clearances, for closeout
3. Resolve all outstanding issues
4. Initiate final payment toor collection of overpayment
from contractor
5. Deobligate excess funds /request additional funds
6. Prepare contractcompletion statement
7. Dispose of contract file
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• FAR 4.804-3 directs payment office to close contract upon issuance of final payment voucher
Time Standard FAR 4.804
Contract Type Calendar Months
Contracts Using Simplified
Acquisition Procedures
Evidence of Receipt
and Final Payment
All Other Fixed Priced contracts 6 Months
Cost-Reimbursement Contracts
(including T&M and LH contracts)36 Months
All Other Contract Types 20 Months
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Current/Available Expired Cancelled
Appropriation Life Cycle
Appropriation Types
Available Expired Cancellation Date
O & M = 1 Year + 5 Years = Sept. 30th of the 6th year
R & D = 2 Year + 5 Years = Sept. 30th of the 7th year
PROC = 3 Year + 5 Years = Sept. 30th of the 8th year
MILCON = 5 Year + 5 Years = Sept. 30th of the 10th year
Available for Obligation
and Payment
Must ObtainNew Funding
Available for Payment
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Contract Closeout Initiatives
Priority Audits
ContractCloseout
NotificationEDI 567
Reducing LateSubmission
Quick Closeout
CumulativeAllowable Cost
Worksheet(CACWS)
ContractAudit ClosingStatements
(CAC)
Initiatives
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Disconnect with Accounting System
Accounting
MOCASEDI 567(DD 1594)
Acquisition
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Contract Closeout Excess Funds
The ACO deobligates excess funds after final
price determination; ensure funding is in accordance
with contract terms
The PCO is notified of the contract closeout
by a MILCAP EDI (electronic) or a DD form 1594 (manual)
Systemic deobligation of remaining funding is handled under the Q-
Final process in MOCAS
Excess funds do NOT include “remaining” funds due to price
variance, rounding, or cost underrun funding
The excess funds available for deobligation are removed by contract
modification (SF 30) after PCO permission
The ACO reviews unliquidated obligations
(ULOs) against open and cancelled appropriations
Process Flow
* Request closeout contract payment history at [email protected]
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Common Closeout Barriers
Delayed Negotiation of Overhead Rates
Contractor Submission Delays Delinquent incurred cost proposals
Awaiting Subcontractor Submissions
Submission of Final Cost Vouchers
Contract Writing
Cancelled Funds
Payment Delays
Reconciliation Issues
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Electronic Commerce Contract
Acceptance
Invoice
Submission of Cumulative
Allowable Cost Worksheets
(CACWS)
Timely Submission of
Final Voucher
How Can You Help?
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MOCAS Data Share Initiative
Monitor Cancelled Funds
Contract Structure
Standard Payment Instructions
Limit Contract Financing Rates
How Can You Help?
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Discussion / Questions
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Resources
DCMA Homepage: www.dcma.mil
DCMA Contract Closeout Page: http://home.dcma.mil/cntr-dcmac-m/index.htm
DCAA Homepage: www.dcaa.mil
FAR Home Site www.arnet.gov/far
Rebecca Beck – DFAS-Columbus, Director of Finance