| Authority/Reference(s) | |
|---|---|
| Revision Date | June 1, 2021 |
Policy
When there is reasonable certainty that the terms of a contract have been met and there is no intent to renew or extend the contract, contract staff must close out the contract. Termination occurs either by expiration of the contract term or by cause or convenience.
Unless otherwise stated in the contract, the closeout process must be completed within 120 calendar days of contract termination and closed out in SCOR. If a contract has an outstanding quarterly incentives and remedies monitoring after 120 days, it should be closed out in SCOR as soon as monitoring is completed, and incentives or remedies are processed.
Contract staff must ensure that the interests of DFPS are protected by coordinating, communicating, and documenting closeout requirements. Contract staff coordinate with DFPS program areas, Contracts Legal (as needed), and the contractor to ensure closeout requirements are met.
If the contractor has provided any services within the current fiscal year, the contractor must submit all financial, performance and other required reports, and liquidate all obligations no later than 90 calendar days after contract termination, unless DFPS approves in advance to extend this deadline.
If a contractor has filed for or completed bankruptcy proceedings, contact Contracts Legal and DFPS Accounting before taking closing out the contract.
Closeout Requirements
Contract staff assess the following during the contract closeout process, as applicable.
- The terms and conditions of the contract have been met.
- All goods and services have been received and accepted.
- All articles, material, report data, and exhibits have been delivered or accepted, if applicable.
- Arrangements have been made for transferring client caseloads and files to a new contractor, if applicable.
- Intellectual property, supplies, and disposition of equipment have been inventoried.
- The contractor has identified outstanding invoices and developed a plan for resolution.
- Obligated funds should match the total payments made to the contractor, including the final payment.
- If any budgeted funds are remaining, contract staff must contact the DFPS Procurement Support.
- Review actual contract performance against the performance measures, goals, and objectives to determine the contract terms have been met.
- Document and resolve outstanding monitoring findings and audit issues.
- Notify the contractor of record retention requirements.
- DFPS system access (e.g. network, IMPACT) is terminated for external personnel associated with the contractor or subcontractors.
- Contract staff must coordinate with IT to ensure the contractors personnel and subcontractors access and rights to any DFPS system is removed within 24 hours of termination. . This includes, but is not limited to, ensuring that a removal eMAC is submitted and processed for all external access rights granted in relation to the contract. See internal DFPS Operations Policy OP-6101, IMPACT and CLASS Security Permissions Management. PMET is excluded, as it is a self-maintained system.
Records Retention
All contract records must be maintained as provided for in the contract, including DFPS records in the possession of the contractor. Any records that are subject to litigation or outstanding audit findings must be retained until the litigation or audit findings have been officially resolved.
Contract staff are required to coordinate with the Records Management Group before disposing of any contract records; and also coordinate with Contracts Legal before approving the disposal of any contractor contract records.