Quick Close-Out by CLIN?

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242.708 Quick-closeout procedure.

(a) Defense Contract Management Agency administrative contracting officers are authorized to negotiate the settlement of direct and indirect costs for a specific contract, task order, or delivery order to be closed in advance of the determination of final direct costs and indirect rates set forth in FAR 42.705, regardless of the dollar value or percentage of unsettled direct or indirect costs allocable to the contract, task order, or delivery order.

(2) In lieu of the thresholds at FAR 42.708(a)(2)(i) and (ii), the amount of unsettled direct costs and indirect costs to be allocated to the contract, task order, or delivery order will be considered relatively insignificant when the total unsettled direct costs and indirect costs to be allocated to any one contract, task order, or delivery order do not exceed $2 million, regardless of the total contract, task order, or delivery order amount.

I'm wondering whether there is a prohibition on quick-close by CLIN. Suppose one or more CLINs have been successfully performed, delivered, and accepted. May the contracting parties agree to close out those CLINs while leaving others open until completion?

[Neil Roberts]

Prohibited? Not aware of such language. The parties can enter into the agreement, but I don't believe they are authorized to do so. The language and purpose of closeout seem unambiguous to me. If no work was performed on the the other CLINS, perhaps you could explore potentially transferring those CLINS to a new contract that would include the appropriate terms and conditions schedule, SOW, price etc. and indicate that the new contract was combined with the other one for price consideration.

Edited October 4, 2024 by Neil Roberts
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