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Good Afternoon,

I work in the closeout division of one of the alphabet agencies in DoD. We currently have a backlog of thousands of contracts I am trying to closeout with little success.

I have run through all of the contracts I could under DFARS 204.804(3), emailing vendors for all contracts older than 17 fiscal years and closing unilaterally if they agree or do not respond within a  time frame. My problem now is we still have many thousands newer than 17 fiscal years and I generally cannot get vendors to final invoice and work with me resolving these cost plus or t&m types to close them. 

Question: If a vendor responds saying they do not intend to invoice but then nothing further or even if they do not respond within a certain time frame, should I request their information (ICP's, audits, settled rates) from DCAA/DCMA and do a cost buildup showing what they are owed or what they owe back to DoD. If their audits or rates were settled within the last 6 years, then do I have leeway to start issuing debt letters and documenting that the vendor was paid everything they are entitled to? Or is it 6 years from the date DCAA receives their ICP that the statue of limitations starts ticking? If DoD owes them, should I still closeout the contract and just document the max the vendor is owed if they ever come back, reopen the contract and want to invoice?

Sorry for the barrage of questions, very new and just trying to make some headway into this problem. Please note, just seeking opinions from more experienced contracting officers that hopefully have more experience with this than myself - not making any rash decisions. 

 

Much Obliged,

TroubledCloser

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  • 4 weeks later...

Apologies that you have not received any assistance. I believe the reason for this is there is not a single "catch-all" answer to be given. 

What I would suggest, and this is what I would do:

1 - Do your best to reconcile and close them out (you have done that);

2 - If nothing more can be done, document the file with actions taken to reconcile;

3 - Adjust the contract amounts to reflect actual funding expended. The funds past 5 years after obligation are not there anyway;

4 - Make folders for those specific fiscal year contracts until they can be closed out in accordance with section 836 of the National Defense Authorization Act for Fiscal Year 2017 (Pub. L. 114-328) and section 824 of the National Defense Authorization Act for Fiscal Year 2018 (Pub. L. 115-91). I would mark them with somethin like "ready for closeout/archive in FYXX."

Sorry, but if you can't do it - you can't do it. 

 

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Forget your normal procedural bureaucratic process.

Instead, read your contracts and then do what the contracts say.

The contract clause at FAR 52.216-7, Allowable Cost and Payment, requires the contractor to work with you to settle on final indirect cost rates (this often occurs long after final payment has been made).  That clause then requires the contractor to submit a completion invoice or voucher to reflect the settled amounts and rates.  That clause says that if the contractor does not submit a completion invoice or voucher, then the contracting officer may determine the amount due by unilateral contract modification.  Any disagreements are handled under the Disputes clause.

You should make a CPARS report for these contractors and give them UNACCEPTABLE ratings for Cost Control and also for Management or Business Relationships. 

Do it.

Then, the contracts will be ready for closeout.

 

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