Contract Closeout. Rebecca Beck Director of Finance - DFAS Columbus

Transcription

1 Contract Closeout Rebecca Beck Director of Finance - DFAS Columbus

2 Overview Contract Life Cycle Key Players Major Steps in Closeout Process Time Standards Appropriation Life Cycle Common Barriers How Can You Help? Initiatives Disconnect with Accounting Excess Funds Resources Group Discussion 2

3 Life Cycle of a Contract Procure to Pay Contract Performance and Administration Funding Pre Contract Structure/Award Contract Closeout 3

4 Contract Closeout Key Players Services Funds Management Negotiation of Rates Complete all Closeout Actions Additional Funding Property Disposition Replacement Funds Product Acceptance ONE FOCUS Final OH Rates Indirect Cost Audits CACWS Final Voucher Review Reconciliations Part B (FFP<100K) Final Payment Indirect Cost Rate Prop Year End Rate Adjustments Final Invoice//Vouchers Settle Subcontracts 4

5 Major Steps in Contract Closeout 7. Dispose of contract file 6. Prepare contract completion statement 5. Deobligate excess funds / request additional funds 4. Initiate final payment to or collection of overpayment from contractor 3. Resolve all outstanding issues 2. Obtain all forms, reports, and clearances, for closeout 1. Verify that contract is physically complete 5

6 Time Standard FAR Contract Type Contracts Using Simplified Acquisition Procedures All Other Fixed Priced contracts Cost-Reimbursement Contracts (including T&M and LH contracts) All Other Contract Types Calendar Months Evidence of Receipt and Final Payment 6 Months 36 Months 20 Months FAR directs payment office to close contract upon issuance of final payment voucher 6

7 Appropriation Life Cycle Current/Available Expired Cancelled Available for Obligation and Payment Available for Payment Must Obtain New Funding Appropriation Types Available Expired Cancellation Date O & M = 1 Year + 5 Years = Sept. 30th of the 6th year R & D = 2 Year + 5 Years = Sept. 30th of the 7th year PROC = 3 Year + 5 Years = Sept. 30th of the 8th year MILCON = 5 Year + 5 Years = Sept. 30th of the 10th year 7

8 Contract Closeout Initiatives Priority Audits Contract Closeout Notification EDI 567 Contract Audit Closing Statements (CAC) Initiatives Reducing Late Submission Cumulative Allowable Cost Worksheet (CACWS) Quick Closeout 8

9 Disconnect with Accounting System MOCAS EDI 567 (DD 1594) Accounting Acquisition 9

10 Contract Closeout Excess Funds Process Flow The ACO deobligates excess funds after final price determination; ensure funding is in accordance with contract terms The excess funds available for deobligation are removed by contract modification (SF 30) after PCO permission The ACO reviews unliquidated obligations (ULOs) against open and cancelled appropriations Excess funds do NOT include remaining funds due to price variance, rounding, or cost underrun funding Systemic deobligation of remaining funding is handled under the Q- Final process in MOCAS The PCO is notified of the contract closeout by a MILCAP EDI (electronic) or a DD form 1594 (manual) * Request closeout contract payment history at cco-reconciliation-maillog@dfas.mil 10

11 Common Closeout Barriers Delayed Negotiation of Overhead Rates Contractor Submission Delays Delinquent incurred cost proposals Awaiting Subcontractor Submissions Submission of Final Cost Vouchers Contract Writing Cancelled Funds Payment Delays Reconciliation Issues 11

12 How Can You Help? Electronic Commerce Contract Acceptance Invoice Submission of Cumulative Allowable Cost Worksheets (CACWS) Timely Submission of Final Voucher 12

13 How Can You Help? MOCAS Data Share Initiative Monitor Cancelled Funds Contract Structure Standard Payment Instructions Limit Contract Financing Rates 13

14 Discussion / Questions 14

15 Resources DCMA Homepage: DCMA Contract Closeout Page: DCAA Homepage: FAR Home Site Rebecca Beck DFAS-Columbus, Director of Finance 15