COR Contract Closeout Procedures 2 — Questions and Answers
Question 1: Which document formally verifies that a contractor has delivered all required supplies or services before contract closeout?
- Past Performance Evaluation
- Contractor's Release of Claims
- Receiving Report or DD Form 250 (Correct answer)
- Contracting Officer's Final Decision
Correct answer: Receiving Report or DD Form 250
A receiving report (or DD Form 250) documents government acceptance of all required deliverables, a prerequisite for initiating closeout.
Question 2: During contract closeout, what happens if a contractor submits an invoice that was not previously identified during performance?
- The invoice is automatically rejected
- The COR must verify the claim against contract records before forwarding to the CO (Correct answer)
- The contracting officer pays it immediately to avoid disputes
- The invoice is held for 90 days pending audit
Correct answer: The COR must verify the claim against contract records before forwarding to the CO
The COR reviews any late or unresolved invoices against contract records and technical performance data before the CO makes a payment decision.
Question 3: What is the standard timeframe for closing out a contract that used simplified acquisition procedures after physical completion?
- 6 months (Correct answer)
- 12 months
- 36 months
- 180 days
Correct answer: 6 months
FAR 4.804-1 requires contracts using simplified acquisition procedures to be closed out within 6 months after physical completion.
Question 4: When a contractor submits a Completion Voucher, what does this signify?
- The contractor is requesting a contract modification
- The contractor is certifying that all costs have been claimed and no further payments are due (Correct answer)
- The contractor is disputing a government withholding
- The government has accepted all deliverables
Correct answer: The contractor is certifying that all costs have been claimed and no further payments are due
A Completion Voucher is the contractor's final cost submission certifying that all allowable costs have been claimed and no further billing will occur.
Question 5: A contract has been physically complete for two years with no closeout action taken. What risk does this create?
- The contract automatically voids
- Unliquidated obligations may persist on agency books, distorting budget data (Correct answer)
- The contractor loses all payment rights
- The COR becomes personally liable for unpaid invoices
Correct answer: Unliquidated obligations may persist on agency books, distorting budget data
Delayed closeout leaves unliquidated obligations on the agency's financial records, which can misrepresent available funding and skew budget reporting.
Question 6: Which type of audit is commonly required before closing out a cost-reimbursement contract?
- Performance audit by the GAO
- DCAA incurred cost audit (Correct answer)
- Inspector General fraud audit
- SBA small business audit
Correct answer: DCAA incurred cost audit
The Defense Contract Audit Agency (DCAA) conducts incurred cost audits to verify that all claimed costs on cost-reimbursement contracts are allowable, allocable, and reasonable.
Question 7: What action should the COR take if they discover property that was provided to a contractor under a contract that is now being closed out?
- Document it and notify the contracting officer so government property can be recovered or disposition determined (Correct answer)
- Allow the contractor to retain it as part of final settlement
- Transfer it directly to the next contractor without CO involvement
- Write it off as lost property immediately
Correct answer: Document it and notify the contracting officer so government property can be recovered or disposition determined
The COR must account for all government-furnished property and report its status to the CO, who determines proper disposition before closeout is complete.
COR Contract Closeout Procedures 2
Which document formally verifies that a contractor has delivered all required supplies or services before contract closeout?