Authority/Reference(s) Texas Contract Management Guide, Ch. 7; Texas Government Code §2262
Revision Date September 15, 2015

Policy

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 close the contract.

Unless otherwise stated in the contract, the closeout process must be completed within 120 calendar days of the last day the contract was in effect. The contractor must submit all financial, performance, other reports required by the contract, and liquidate all obligations no later than 90 calendar days after the end date of the contract, unless prior approval is given.

Contract staff must coordinate with the contractor to develop a plan for reaching a closeout agreement. In developing the agreement, the following must be considered, as applicable:

  • General policies to closing the contract, including the contractor's obligation under the contract's termination clause;

  • The point at which work is stopped and the status of any plans, services, goods, and information that would have been delivered had the contract been completed;

  • Arrangements for transferring client caseloads and files to a new contractor, if applicable;

  • Arrangements for ensuring that all DFPS system access (IMPACT and any other applications) is terminated for all external personnel associated with the contractor or subcontractor(s);

  • The contractor's obligation to immediately cancel goods or services ordered but not delivered, if possible;

  • Arrangements for transferring title and delivering supplies and equipment that must be returned to DFPS;

  • Policies and procedures to protect, preserve, and dispose of inventories, including procedures for preparing inventory schedules;

  • The contractor is made aware of the record retention requirements.

  • Tentative schedule for resolving any issues, including the contractor's submission of any claims, inventory schedules, and necessary accounting information; and

  • The necessity of auditing any closeout issues and agreements.