1. INNOVATIONS IN ENGINEERING Draper Proprietary Contract Closeout

2. Draper Proprietary Contract closeout Involvement of key players in closeout process Develop a check list and a team Understand the types of contracts and the timeframes required for closeout. Know the appropriation life cycle Common closeout barriers Expediting contract closeout Discussion Agenda

3. Draper Proprietary Life Cycle of a Contract – Procure to Pay Pre Contract Structure/Award Contract Performance and Administration Contract Closeout Title Funding

4. Draper Proprietary 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 DCAA Contract Closeout Key Players DFAS DCMA Funds Management Negotiation of Rates Complete all Closeout Actions Reconciliations Part B (FFP<100K) Final Payment

5. Draper Proprietary 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 to or collection of overpayment from contractor 5. Deobligate excess funds / request additional funds 6. Prepare contract completion statement 7. Dispose of contract file

6. Draper Proprietary FAR 4.804-3 directs payment office to close contract upon issuance of final payment voucher Time Standard FAR 4.804 Contract TypeCalendar Months Contracts Using Simplified Acquisition Procedures Evidence of Receipt and Final Payment All Other Fixed Priced contracts6 Months Cost-Reimbursement Contracts (including T&M and LH contracts) 36 Months All Other Contract Types20 Months

7. Draper Proprietary Current/Available Expired Cancelled Available for Obligation and Payment Appropriation Life Cycle Must Obtain New Funding Payment Appropriation Types AvailableExpiredCancellation Date O & M=1 Year+5 Years=September 30th of the 6th year R & D=2 Year+5 Years=September 30th of the 7th year PROC=3 Year+5 Years=September 30th of the 8th year MILCON=5 Year+5 Years= September 30th of the 10th year Available for Funding

8. Draper Proprietary Common Closeout Barriers Contractor Submission Delays  Delinquent incurred cost proposals  Awaiting Subcontractor Submissions  Submission of Final Cost Vouchers Delayed Negotiation of Overhead Rates Payment Delays Contract Writing Canceled Funds Reconciliation Issues

9. Draper Proprietary 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 cco-reconciliation-maillog@dfas.mil

10. Draper Proprietary Resources DCMA Homepage: www.dcma.mil DCMA Contract Closeout Page: http://home.dcma.mil/cntr-dcmac- m/index.htm http://home.dcma.mil/cntr-dcmac- m/index.htm DCAA Homepage: www.dcaa.mil FAR Home Site www.arnet.gov/far