PGI 204.804: Closeout of contract files.

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-(1) Data supporting contract closeout (e.g., DD Form 1594, Contract Completion Statement) are electronically transmitted throughout DoD. Defense Logistics Manual 4000.25, Defense Logistics Management Standards (DLMS), Volume 7, Contract Administration, Chapter 4, Contract Completion Status Reporting, available at https://www.dla.mil/Defense-Data-Standards/Publications/Vol-7-Administration/, contains detailed instructions regarding closeout and electronic data transmission.
-(i) The administration office closeout date for file purposes will be the date in Block 9d of the DD Form 1594 or agency equivalent.
-(ii) If the contracting office must do a major closeout action that will take longer than 3 months after the date shown in Block 9d of the DD Form 1594-- (A) The purchasing office closeout date for file purposes will be the date in Block 10e of the DD Form 1594 or agency equivalent; and (B) The contracting office shall notify the contract administration office of the revised closeout date by either sending a copy of the completed DD Form 1594 or by electronically transmitting the data.
-(iii) Completion of block 10 is not required, when the contracting office accepts the closeout date in block 9d of the DD Form 1594 (or agency equivalent) and the contract completion statement is posted to the Electronic Data Access (EDA) system as required by PGI 204.804-2.
-(iv) Closeouts posted to EDA are considered part of the contract file and do not need to be duplicated in any other version of the contract file.
-(v) A contract modification is not needed to deobligate excess funds when block 5 is completed, and this deobligation will occur upon distribution of the contract completion statement. Send a notification and a copy of the contract completion statement to the comptroller to allow general ledger reconciliation.
-(vi) A contract qualifies for an automated closeout process if the contract-- (A) Only has firm-fixed-price line items; (B) Does not exceed $500,000; and (C) Does not include any of the following provision and clauses:
-(1) FAR 52.211-11, Liquidated Damages--Supplies, Services, or Research and Development.
-(2) FAR 52.216-7, Allowable Cost and Payment.
-(3) FAR 52.227-9, Refund of Royalties.
-(4) FAR 52.227-11, Patent Rights--Ownership by the Contractor.
-(5) FAR 52.227-13, Patent Rights--Ownership by the Government.
-(6) FAR 52.232-16, Progress Payments.
-(7) FAR 52.232-29, Terms for Financing of Purchases of Commercial Products and Commercial Services.
-(8) FAR 52.232-30, Installment Payments for Commercial Products and Commercial Services.
-(9) FAR 52.232-32, Performance-Based Payments.
-(10) FAR 52.245-1, Government Property.
-(11) FAR 52.248-1, Value Engineering. (D) DoD components may add further limitations to ensure all contract requirements have been completed prior to closeout. (E) Basic ordering agreements, blanket purchase agreements, and indefinite-delivery contracts can be automatically closed using automated contract closeout procedures after all orders are closed and the ordering period has expired.
+(1) Except as provided in paragraph (3) of this section, contracting officers shall close out contracts in accordance with the procedures at PGI 204.804 . The closeout date for file purposes shall be determined and documented by the procuring contracting officer.
+(2) The head of the contracting activity shall assign the highest priority to close out of contracts awarded for performance in a contingency area. Heads of contracting activities shall monitor and assess on a regular basis the progress of contingency contract closeout activities and take appropriate steps if a backlog occurs. For guidance on the planning and execution of closing out such contracts, see PGI 207.105 (b)(20)(C)(8) and PGI 225.373 (e). (3)(i) In accordance with section 836 of the National Defense Authorization Act for Fiscal Year 2017 (Pub. L. 114-328), section 824 of the National Defense Authorization Act for Fiscal Year 2018 (Pub. L. 115-91), and section 820 of the National Defense Authorization Act for Fiscal Year 2021 (Pub. L. 116-283), contracting officers may close out contracts or groups of contracts through issuance of one or more modifications to such contracts without completing a reconciliation audit or other corrective action in accordance with FAR 4.804-5(a)(3) through (15), as appropriate, if each contract-- (A)( 1 ) For military construction (as defined at 10 U.S.C. 2801) or shipbuilding, was awarded at least 10 fiscal years before the current fiscal year; or
 
-(3)(iv)
+( 2 ) For a ll other contracts, was awarded at least 7 fiscal years before the current fiscal year;
 
-A department or agency requesting a waiver of any provisions of acquisition law or regulation to carry out the closeout procedures shall forward the request and any supporting documentation to the Office of the Principal Director, Defense Pricing, Contracting, and Acquisition Policy (Contract Policy) via email to osd.pentagon.ousd-a-s.mbx.asda-dp-c-contractpolicy@mail.mil. The Principal Director, Defense Pricing, Contracting, and Acquisition Policy, will forward the request to USD(A&S), as appropriate.+(B) The performance or delivery was completed at least 4 years prior to the current fiscal year; and (C) Has been determined by a contracting official, at least one level above the contracting officer, to be not otherwise reconcilable, because--
+(1) The contract or related payment records have been destroyed or lost; or
+(2) Although contract or related payment records are available, the time or effort required to establish the exact amount owed to the U.S. Government or amount owed to the contractor is disproportionate to the amount at issue.
+(ii) Any contract or group of contracts meeting the requirements of paragraph (3)(i) of this section may be closed out through a negotiated settlement with the contractor. Except as provided in paragraph (3)(ii)(B) of this section, the contract closeout process shall include a bilateral modification of the affected contract, including those contracts that are closed out in accordance with a negotiated settlement. (A) For a contract or groups of contracts, the contracting officer shall prepare a negotiation settlement memorandum that describes how the requirements of paragraph (3)(i) of this section have been met. (B) For a group of contracts, a bilateral modification of at least one contract shall be made to reflect the negotiated settlement for a group of contracts, and unilateral modifications may be made, as appropriate, to other contracts in the group to reflect the negotiated settlement.
+(iii) For contract closeout actions under paragraph (3) of this section, remaining contract balances-- (A) May be offset with balances in other contract line items within the same contract, regardless of the year or type of appropriation obligated to fund each contract line item and regardless of whether the appropriation obligated to fund such contract line item has closed; and (B) May be offset with balances on other contracts, regardless of the year or type of appropriations obligated to fund each contract and regardless of whether such appropriations have closed.
+(iv) USD(A&S) is authorized to waive any provision of acquisition law or regulation in order to carry out the closeout procedures authorized in paragraph (3)(i) of this section (see procedures at PGI 204.804 (3)(iv)).
+(4) When using the clause at 252.204-7022, Expediting Contract Closeout, to expedite contract closeout, determine the residual dollar amount upon completion of all applicable closeout requirements of FAR 4.804.