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carrod

Contract Close Out

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Thank you Vern. Makes sense.

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Does anyone see a need to close out a contract that has been terminated? In this case the contractor states that the termination settled everything for all parties. He does not want to sign another release, submit a zero invoice and attest to no goverment property involved, patent rights, etc. Moreover, he states that during settlement he was told there would be no more documents. He is clearly reluctant to sign addtional documents and would not do so unless he had legal review and the added expense. Obviously, he does not want to incur additional expense.

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ALL contracts must be closed out! Absolutely every one. There is no such thing as a contract that does not have to be closed out. Read FAR 4.804.

Are you a trainee?

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ALL contracts must be closed out! Absolutely every one. There is no such thing as a contract that does not have to be closed out. Read FAR 4.804.

Are you a trainee?

It looks like 4.804 implies it. I'm a seasoned contracting professional but am new to contract close outs. Learning a lot from this site and appreciate that. At one time there was a school of thought that said "if the FAR does not expressly prohibit an action it is permissible if otherwise legal. It may be too risky to think that way.

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Close out is simply a way of documenting the end of a business transaction, so that the file can be retired or followup action taken to bring the transaction to its proper conclusion. Every business must (or at least should) do that, so that it can know where it stands legally and financially and that it received what it bargained and paid for and can close the books. It is not done for contractors and it doesn't matter what they think about it. If the contractor in question feels that it doesn't owe you anything by way of a release or other documentation and doesn't want to give you anything, then take whatever administrative or legal action necessary or write a memo to file and move on.

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Does anyone see a need to close out a contract that has been terminated? In this case the contractor states that the termination settled everything for all parties. He does not want to sign another release, submit a zero invoice and attest to no goverment property involved, patent rights, etc. Moreover, he states that during settlement he was told there would be no more documents. He is clearly reluctant to sign addtional documents and would not do so unless he had legal review and the added expense. Obviously, he does not want to incur additional expense.

Did the settlement agreement include release of claims language or something essentially equivalent?

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Close out is simply a way of documenting the end of a business transaction, so that the file can be retired or followup action taken to bring the transaction to its proper conclusion. Every business must (or at least should) do that, so that it can know where it stands legally and financially and that it received what it bargained and paid for and can close the books. It is not done for contractors and it doesn't matter what they think about it. If the contractor in question feels that it doesn't owe you anything by way of a release or other documentation and doesn't want to give you anything, then take whatever administrative or legal action necessary or write a memo to file and move on.

Understand. I had written a note to the file but then asked the contractor again to sign a release based on your absolutely comment above. Will see if he agrees. If not, what compliance action can government take? Maybe put something in past performance file.

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Did the settlement agreement include release of claims language or something essentially equivalent?

Don't know, but termination and a settlement fee of xxx dollars certainly implies no further claim in my thinking.

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Don't know, but termination and a settlement fee of xxx dollars certainly implies no further claim in my thinking.

Why not read the settlement agreement? If it contains essentially the same language, I suggest consulting with your attorney (who probably assisted in the Termination Settlement) and have the TCO determine if that is adequate. If, so document the file and pay the Contractor off.

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Why not read the settlement agreement? If it contains essentially the same language, I suggest consulting with your attorney (who probably assisted in the Termination Settlement) and have the TCO determine if that is adequate. If, so document the file and pay the Contractor off.

The settlement is on a modifiication that cites default under FAR clause 52.249-8. The contractor was paid off. No language about a release. I'm seeking a release to be on the safe side.

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Does anyone know if purchase orders under simplified procedures need a release and all those items under FAR 4.804-5. FAR 4.804-1 states files for simplified acquisitons should be considerd closed when the KO receives evidence of receipt of property and final payment. It also bothers me why this agency didn't use the purchase card for these small purchases under $5,000.

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