Finalizing the Lifecycle

Finalizing the Lifecycle

After meeting the requirements that are agreed upon in a contract, the closeout process begins. Various aspects are considered, such as settling of disputes, making of payments, and meeting the guidelines. The federal process is made up of six important steps in the contracting process (CDC, 2019). We shall analyze the final step, types, and implications of delays in contract closeouts.

Types of Closeouts

The type of contract closeout is dependent on the contract. To begin with, there is a fixed price closeout. The federal acquisition regulations that fixed price closeouts be handled within six months of completion of the project (Service Acquisition, 2018). The complexity is determined by associated deliverables as documented in the deliverables of the project. Other considerations include liquidation obligations (Knauer, 2007). A final acceptance document is required, which is processed and moved to the second section, where the six months clock starts. The status of the contract’s funds is reviewed which looks at the identification of excesses, the state of disposition of federal property, and verification of the final documents.

All these processes have to be verified before the final buying or contract activity is authorized.

The cost-reimbursable closeout is another type of closeout. There are complex since they look at the actual costs incurred, which may vary and an agreement may pull into years (Knauer, 2007). Several areas are monitored which include the indirect cost settlements, corporate allocations, and the possibility of using the quick closeout procedure. The areas that are closely monitored include the performance period, the validity and submission of reports and data items, funding status, and any public vouchers. These documentations allow for the progress of the items to section 2, which is the physical completion where evidence of contract completion is ort after. This leads to the final acceptance. A final voucher is required which looks at aligning of indirect cost rates which require review and approval. This is the final voucher to be paid out; a contract completion statement is then developed.

The third type is the labor hour or the time and material contract closeout. There is a special issue of consideration since these types of closeouts may be lacking in actual costs as well as clear schedule audits. As such, there is the monitoring of labor and other costs to ensure there are not excessive amounts. In fixed indirect rates, the adequacy of the contractor’s recording system is required and an inadequacy spotted should be adjusted according to its nature. The next step of the procedure for closing out the project is similar to a cost-reimbursable contract closeout (Knauer, 2007).

Implications of Delayed Closeouts

            One of the important areas of closeouts is the protection of the government’s interests. By delay in the closeout process, there is a significant amount of financing that is withheld. This means that there is a delay in the allocation of resources for other priority areas. Prolonged delays may also lead to increased accumulation of fees to the contractors, which would cost more for the government. Prolonged disputes can also lead to delays in closing out a project which in turn can also lead to increased risk of delayed progress in the subsequent projects. Projects requiring the completion of the delayed project can adversely be affected, leading to delayed delivery of services to the public.

References

CDC (Centers for Disease Control and Prevention). (2019). Contracting Process. Retrieved from https://www.cdc.gov/contracts/process/index.html

Knauer, R. (2007). The Acquisition institute Contract Closeout Guidebook. Retrieved from http://www.acqnotes.com/Attachments/Acquisition%20Institute%20Contract%20Closeout%20Guidebook%20Oct%2007.pdf

Service Acquisition (2018). Contract Closeout. Retrieved from http://acqnotes.com/acqnote/careerfields/contract-closeout