My agency is in the process of archiving contract files (electronically). FAR 4.805 states the “retention period” for contracts at 6 years after final payment. We are having conflicting interpretation of what is meant by “retention”.

1. Does this mean after a contract is closed, it must remain at the agency for 6 years after final payment before it can be archived, or does it mean a closed contract can be destroyed 6 years after final payment?

2. Assuming it means a closed contract can be destroyed 6 years after final payment, is there a specific period of time after closure that must pass before it can be archived (e.g., at the agency, in an electronic archiving capacity, or at the federal records center), or can it be archived any time after closure?

I have looked through the FAR, NARA's GRS 1.1, and 36 CFR § 1225.14(c), but can't seem to find a clear answer. I'm sure it's stated in a roundabout way but I'm not seeing the clarity.

Maybe this will help.

https://www.archives.gov/files/records-mgmt/pdf/dfr-2000.pdf

My read retain 6 years either at agency or authorized retention facility. Schedule for destruction or other action (donate) but NARA authorizes.

I think that the six year limit is antiquated, based upon paper file retention methods that required space and resources for box or file cabinet storage.

I found it occasionally necessary to review old contract files. Once, I had to review files of the Army Corps of Engineers construction contracts in Saudi Arabia to support determination of failure responsibility and/or enforcement of roof warranties for thousands of failed roofs.

I discovered that the Saudis had fully preserved all of our old paper contract files in libraries at the various major project sites.

When I was in the Air Force fifty years ago, fortunately the Base Civil Engineer Squadron had saved all the technical contract files from the original Air Base Construction 15 years earlier.. Every time that SAC made Operational Readiness Inspections, we had to hide the filing cabinets or files above the ceiling at CE. 🤪

Thank God for the ability to electronically store contract files now days.

Thanks. I feel like there has to be something out there that specifies it in plain English, but I cant find anything. I do think everything I have found supports the point that a document can be archived anytime after closure and does not need to wait 6 years after final payment to go into archives (with the 6 years after final payment being tied specifically to destruction). I'm 99% certain that the 6 tears after final payment requirement specifically applies to when a contract can be destroyed. I just wish there was a document or guidance out there that calls this out.

I have also sent a message to NARA to see if they can answer this.

1 hour ago, joel hoffman said:

I think that the six year limit is antiquated

Long time ago I was pretty expert at file retention. Today not so much but I have always understood that the 6 year is based on the Disputes Act statute of limitations.

This said retaining lots of stuff is much easier in this day of e-storage but there are a few catches in my view.....

Why retain if there is no anticipated use? Do you really think retaining a usual janitorial contract has any use after the 6 year period? I will not even attempt to calculate but it seems infinite storage is at no cost. After all I have to pay for cloud storage that my phone can't hold or extending at a cost what my computer at home needs to store.

There are permanent designations for such things as "as-builts'" etc. connected to construction one should not confuse a "contract" with such documents. I would note that the document I linked provides a distinction between "permanent" and "temporary". And related to the cost matter not to be forgotten is the cost to convert or update e-file. Maybe todays world of e-documents makes for easy as builts but I have to think someone someplace is somehow doing the effort and not like they use to in construction shack with red lines on a drawing like the olden days?

In very casual conversations with folks today that deal with the matter this crops up - the e-file filing system and designation. Simple example sometimes I have trouble finding something I e-filed (document, photo, email, etc.). In some cases I can imagine it is like trying to find Waldo.

Yes storage electronically is a great advancement with the advancemet coming with its own considerations but I wonder if retention period is not really one of them.

Post Script - @ContractingGuy I know you said "my agency" but again with my recollection engaged it seemed that back in the day the agencies I worked for had a records specialist somewhere within the organziation. Just a thought is "my agency" the acquisition stove pipe or have you reached beyond to find help to answer your questions? You might want to check this link out if you have not - https://www.archives.gov/records-mgmt/agency#:~:text=NARA%20has%20oversight%20authority%20for,%2C%20College%20Park%2C%20MD%2020740.

Thanks. I have spoken with NARA and they requested I contact our agency's records office as well, which I have.

NARA clarified that the "retention" period does refer to the date when the records can be destroyed. I didn't realize that each individual agency sets the requirements for when records can be transferred to storage (e.g., Federal Records Center, cloud storage, etc.), so hopefully our records office can shed light on that.

Thanks!

Carl, I don’t disagree with you. For service contracts at least, what need is there to retain old files edit: or retain files longer than six years?

And yes, the six year statute of limitations for filing claims is relevant.

However, I’d say that, over the years, I sometimes needed more information than what the as-built drawings contained for construction contracts. Especially if something wore out or failed or if it failed within extended warranty periods. Shop drawings and approval comments were often helpful. Even the daily QC and QA reports sometimes were relevant to investigations to determine what might have happened. This was regardless of whether or not someone was responsible contractually. We may just have needed to source repairs or replacements.

I can also see the need to be able to electronically retain information for some supply contracts for issues or repairs down the road. Knowing the dates and sources of purchases for instance.

Edit: To clarify, my comments are simply related to be able to retain electronic files of construction (or some supply) contract beyond six years.

As Carl noted why retain old service contract files beyond the statute of limitations for submitting a claim?

No longer necessary to keep file cabinets and physical files, which was probably a major reason for requiring destruction of old files after six years. Cost and space

I remember spending hours in warehouses sifting through shelves and boxes to review contract info.

Edited June 11Jun 11 by joel hoffman

Then again, I’m antiquated, too. 🥸

3 hours ago, ContractingGuy said:

I didn't realize that each individual agency sets the requirements for when records can be transferred to storage (e.g., Federal Records Center, cloud storage, etc.), so hopefully our records office can shed light on that.

Yes. Many agency policies say files can be sent to storage immediately after closeout. When that happens, the transmittal information to NARS must indicate when the files can be destroyed.

On 6/11/2025 at 9:56 AM, C Culham said:

Today not so much but I have always understood that the 6 year is based on the Disputes Act statute of limitations.

The six year SOL may not resolve the problem. Remember the SOL only begins to run when a claim accrues. A claim may accrue much later than six years after contract closeout. Example, look at the WWII environmental clean up cases where the government is being forced to pay contractors for environmental damage through indemnification clauses in those contracts.

@Retreadfed I have a pretty good grasp on where the SOL may not apply. A subject for a different discussion. And, a reason an agency may have an approach different than the general unless 6 year retention. This said I will stick to my statement that you quoted unless I am misinformed and the general 6 years retention has another basis.