|Revision Date||February 15, 2019|
When there is reasonable certainty that the terms of a contract have been accomplished and there is no intent to renew or extend the contract, contract staff must closeout the contract. This may occur when the term of the contract expires or after either party has terminated the contract.
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/expiration, unless prior approval by DFPS is given.
Unless otherwise stated in the contract, the closeout process must be completed within 120 calendar days of contract termination/expiration.
Contract staff are responsible for ensuring that DFPS’ interests are protected by coordinating, communicating, and documenting close-out requirements. Contract staff should coordinate with appropriate DFPS contracting and program areas, Contracts Legal (as needed), and the contractor to ensure closeout requirements are met.
Vendor Performance Reporting
Within 15 days of the completing contract closeout requirements (after either termination or expiration), contract staff must submit Vendor Performance Reporting to Contract Oversight and Support, when applicable.
Positive Vendor Performance should be submitted to COS immediately upon expiration or termination of the contract. Due to the thorough and diligent nature of completing the VPTS process, negative Vendor Performance Reporting may take a longer period of time.
Contract staff must ensure the below activities are assessed during the contract closeout process.
- 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 at ACCCODES@dfps.state.tx.us.
- The actual contract performance against the performance measures, goals and objectives to determine if the contract is complete
- Outstanding monitoring findings and audit issues are documented and resolved
- The contractor is made aware of the record retention requirement
- All DFPS system access (e.g. network, IMPACT) is terminated for all external personnel associated with the contractor or subcontractor(s)
All contract records must be maintained as prescribed in the contract. Any records that are subject to litigation or outstanding audit findings must be retained until the litigation or audit findings have been officially resolved. A contract cannot be closed out until remedies for litigation, under appeal or pending termination, are satisfied. Contract staff are required to coordinate with Contracts Legal.
If a contractor has filed for or completed bankruptcy proceedings, contact Contracts Legal and DFPS Accounting before taking any action in furtherance of contract closeout.
If a contract is being terminated for cause, see Contract Termination.