Government Contract Closeout Checklist
Contract closeout is the final phase of government contract administration, but it is often the most neglected. A clean closeout protects your past performance record, ensures you receive all payments owed, and avoids lingering liabilities.
This checklist covers five critical areas: final deliverables, financial reconciliation, property disposition, administrative requirements, and CPARS preparation.
Final Deliverables
Ensure all contract deliverables are complete and accepted.
Verify all deliverables have been submitted and accepted
Review the contract's deliverables schedule (typically in the CDRL or deliverables table) and confirm every item has been submitted, reviewed, and formally accepted by the government. Obtain written acceptance for each deliverable. Unaccepted deliverables will hold up closeout.
Submit final status reports
Deliver all remaining monthly, quarterly, or annual status reports required by the contract. Include a final summary report if required. Ensure report formatting and content meet all contract specifications.
Deliver all technical data and documentation
Provide all technical data, source code, documentation, manuals, and other intellectual property deliverables as required by the contract. Verify data rights markings are correct per DFARS 252.227-7013 (for DoD) or the applicable FAR data rights clause.
Complete knowledge transfer to successor
If the contract is being re-competed or transitioned to another contractor, complete all knowledge transfer activities. This includes providing documentation, training successor personnel, and transferring access to systems and data as directed by the Contracting Officer.
Obtain government acceptance of final deliverables
Get written confirmation from the Contracting Officer or COR that all deliverables have been accepted and that the government considers all performance requirements satisfied. This formal acceptance is critical for your CPARS evaluation and for releasing final payment.
Financial Closeout
Reconcile all financial matters and submit final invoices.
Submit the final invoice
Clearly mark your last invoice as "FINAL." Include all remaining billable costs. For cost-reimbursement contracts, the final invoice must reconcile actual costs against the contract ceiling. For T&M contracts, include all remaining hours and materials. The government will not process closeout until the final invoice is received.
Reconcile all costs against the contract ceiling
Compare total billed costs against the contract funding and ceiling. Ensure you have not exceeded the funded amount or the contract ceiling. For cost-reimbursement contracts, prepare a reconciliation showing total estimated costs vs. actual costs and remaining unspent funds.
De-obligate unused funds
Identify any remaining obligated funds that will not be used. Notify the Contracting Officer so they can de-obligate unused funds. This is particularly important on cost-reimbursement and T&M contracts where the funded amount may exceed actual costs.
Resolve any outstanding payment issues
Follow up on any unpaid or disputed invoices. Resolve any discrepancies between your records and the government's payment records. Check the payment system (WAWF/IPP) for any rejected or pending invoices that need correction.
Complete final indirect rate adjustment (if applicable)
For cost-reimbursement contracts, submit final indirect rate proposals (fringe, overhead, G&A) based on actual incurred costs. These may differ from the provisional rates used during contract performance. DCAA may audit final rates before closeout.
Obtain release of claims
Prepare and submit a release of claims to the Contracting Officer. This document states that you have been fully paid for all work performed and release the government from further financial obligations under the contract (except for specified outstanding items, if any).
Property
Account for all government-furnished property and equipment.
Inventory all Government-Furnished Property (GFP)
Conduct a complete physical inventory of all government-furnished property, equipment, and materials in your possession. Reconcile against the contract's GFP list. Report any discrepancies, lost items, or damaged property to the Property Administrator.
Return or dispose of government property
Follow the Contracting Officer's instructions for returning, transferring, or disposing of government property. Some property may be transferred to the follow-on contractor, returned to a government facility, or declared excess. Document all returns with signed receipts.
Submit final property report
File the required property closeout report (typically DD Form 1662 for DoD contracts). The report must account for all GFP received, consumed, returned, and disposed of during contract performance. The Property Administrator must approve this report before closeout.
Clear any property-related liabilities
Resolve any liability for lost, damaged, or destroyed government property. If items cannot be accounted for, work with the Property Administrator and Contracting Officer to determine financial responsibility and process any required credits or adjustments.
Administrative
Complete remaining administrative and compliance requirements.
Submit final subcontracting reports
If your contract included a subcontracting plan (typically for contracts over $750,000), submit the final Individual Subcontracting Report (ISR) and Summary Subcontracting Report (SSR) in eSRS. Report actual subcontracting dollars to small business categories. Failure to submit can result in liquidated damages.
Close out subcontracts
Ensure all subcontracts under your prime contract are properly closed out. Verify subcontractors have submitted final invoices, returned any government property, and completed all deliverables. Your contract cannot close until all subcontracts are closed.
Archive contract files
Organize and archive all contract files including the contract itself, all modifications, correspondence, deliverables, invoices, and closeout documents. Retain records for the period specified in FAR 4.703 (typically 3 years after final payment for most records, 6 years for construction).
Terminate facility clearances if no longer needed
If the contract required a facility clearance (FCL) and you have no other classified contracts, coordinate with your cognizant security agency (typically DCSA) regarding the disposition of your clearance. You may downgrade or terminate the clearance if no longer needed.
Respond to closeout letter from Contracting Officer
The Contracting Officer will issue a closeout letter or contract completion statement. Review it carefully, confirm all information is accurate, and return it signed. This is the final administrative step. Once the CO processes the closeout, the contract is officially closed in the federal procurement system.
CPARS / Past Performance
Prepare for and respond to your contractor performance evaluation.
Prepare for your CPARS evaluation
The Assessing Official (usually the COR) will enter a performance evaluation in the Contractor Performance Assessment Reporting System (CPARS). Before closeout, compile evidence of strong performance: on-time deliveries, quality metrics, customer satisfaction, and any commendations. A strong CPARS evaluation is critical for winning future contracts.
Review and respond to the CPARS evaluation
You have 14 days to review and respond to the initial CPARS evaluation. If the evaluation is fair and accurate, you can concur. If it contains errors or you disagree with ratings, provide a substantive written response with supporting evidence. Your response becomes part of the permanent record that future source selection teams will see.
Document lessons learned for future proposals
Capture what went well and what could be improved for future contracts. Document the key performance metrics, innovations, and efficiencies you delivered. This information strengthens future proposals and past performance volumes. Note any contract modifications, challenges overcome, and relationships built with government stakeholders.
Common Closeout Mistakes
Waiting until the last minute to start closeout
Contract closeout should begin 60-90 days before the period of performance ends. Waiting until after the contract expires creates unnecessary pressure and increases the risk of missing deadlines, losing documentation, or failing to capture costs.
Not marking the final invoice as "FINAL"
The government payment system needs to know it is the last invoice. Without the "FINAL" designation, the contract will remain open in the payment system indefinitely, and the contracting office cannot process closeout.
Ignoring the CPARS evaluation
Failing to respond to a negative or inaccurate CPARS evaluation means it stands as-is in your permanent record. Future source selection teams will see it and you will not have your side of the story on record.
Losing track of government property
Inability to account for government-furnished property can result in financial liability and negative performance evaluations. Maintain a running inventory throughout contract performance, not just at closeout.
Not closing out subcontracts first
Your prime contract cannot close until all subcontracts underneath it are closed. Start the subcontract closeout process early and in parallel with your own closeout activities.
Recent Closeout Activity
DEFINITIVE CONTRACT 75A50118C50005 (P00007) awarded to CONTRACTING RESOURCES GROUP, INC., was modified for the amount of $91,238.4
CONTRACT CLOSEOUT SUPPORT SERVICES - OPTION YEAR ONE OPTIONAL JUNIOR CONTRACT CLOSEOUT SPECIALIST.
DEFINITIVE CONTRACT 75A50118C50005 (P00008) awarded to CONTRACTING RESOURCES GROUP, INC., was modified for the amount of $0
CONTRACT CLOSEOUT SUPPORT SERVICES - OPTION YEAR ONE OPTIONAL JUNIOR CONTRACT CLOSEOUT SPECIALIST.
DEFINITIVE CONTRACT 70Z08024CMECP0004 (P00003) awarded to NORTH POINT MARINE & INDUSTRIAL INC, was modified for the amount of $0
CONTRACT CLOSEOUT - CONTRACT PREVIOUSLY CANCELLED
DELIVERY ORDER HSTS0512FACQ012 (P00001) awarded to PREMIER MANAGEMENT CORPORATION, was modified for the amount of $582,110.16
"IGF:: OT:: IGF" Contract closeout support services needed within THE oa contract closeout division under THE apss program.
DEFINITIVE CONTRACT NGA14FC1665GS (P00011) awarded to MASTER CARE FLOORING, INC., was modified for the amount of -$3,698
DEFINITIVE CONTRACT NGA14FC1665GS (P00011) awarded to MASTER CARE FLOORING, INC., was modified for the amount of -$3,698. Agency: NATIONAL GALLERY OF ART
DELIVERY ORDER 70B06C18F00000906 (P00001) awarded to FS PARTNERS LLP, was modified for the amount of $0
DELIVERY ORDER 70B06C18F00000906 (P00001) awarded to FS PARTNERS LLP, was modified for the amount of $0. Agency: U. S. CUSTOMS AND BORDER PROTECTION
DELIVERY ORDER HSBP1011J00217 (P00004) awarded to VETERAN CORPS OF AMERICA, was modified for the amount of $0
DELIVERY ORDER HSBP1011J00217 (P00004) awarded to VETERAN CORPS OF AMERICA, was modified for the amount of $0. Agency: U. S. CUSTOMS AND BORDER PROTECTION
DELIVERY ORDER HSBP1015J00159 (P00006) awarded to MOTOROLA SOLUTIONS, INC., was modified for the amount of $0
DELIVERY ORDER HSBP1015J00159 (P00006) awarded to MOTOROLA SOLUTIONS, INC., was modified for the amount of $0. Agency: U. S. CUSTOMS AND BORDER PROTECTION
DELIVERY ORDER EDFSA15O0014 (P00002) awarded to HP ENTERPRISE SERVICES, LLC, was modified for the amount of $0
DELIVERY ORDER EDFSA15O0014 (P00002) awarded to HP ENTERPRISE SERVICES, LLC, was modified for the amount of $0. Agency: EDUCATION, DEPARTMENT OF
PURCHASE ORDER HSBP1010P00265 (P00001) awarded to CARRILLO INVESTMENTS INC, was modified for the amount of $0
PURCHASE ORDER HSBP1010P00265 (P00001) awarded to CARRILLO INVESTMENTS INC, was modified for the amount of $0. Agency: U. S. CUSTOMS AND BORDER PROTECTION
All Records
DEFINITIVE CONTRACT 75A50118C50005 (P00007) awarded to CONTRACTING RESOURCES GROUP, INC., was modified for the amount of $91,238.4
CONTRACT CLOSEOUT SUPPORT SERVICES - OPTION YEAR ONE OPTIONAL JUNIOR CONTRACT CLOSEOUT SPECIALIST.
DEFINITIVE CONTRACT 75A50118C50005 (P00008) awarded to CONTRACTING RESOURCES GROUP, INC., was modified for the amount of $0
CONTRACT CLOSEOUT SUPPORT SERVICES - OPTION YEAR ONE OPTIONAL JUNIOR CONTRACT CLOSEOUT SPECIALIST.
DEFINITIVE CONTRACT 70Z08024CMECP0004 (P00003) awarded to NORTH POINT MARINE & INDUSTRIAL INC, was modified for the amount of $0
CONTRACT CLOSEOUT - CONTRACT PREVIOUSLY CANCELLED
DELIVERY ORDER HSTS0512FACQ012 (P00001) awarded to PREMIER MANAGEMENT CORPORATION, was modified for the amount of $582,110.16
"IGF:: OT:: IGF" Contract closeout support services needed within THE oa contract closeout division under THE apss program.
DEFINITIVE CONTRACT NGA14FC1665GS (P00011) awarded to MASTER CARE FLOORING, INC., was modified for the amount of -$3,698
DEFINITIVE CONTRACT NGA14FC1665GS (P00011) awarded to MASTER CARE FLOORING, INC., was modified for the amount of -$3,698. Agency: NATIONAL GALLERY OF ART
DELIVERY ORDER 70B06C18F00000906 (P00001) awarded to FS PARTNERS LLP, was modified for the amount of $0
DELIVERY ORDER 70B06C18F00000906 (P00001) awarded to FS PARTNERS LLP, was modified for the amount of $0. Agency: U. S. CUSTOMS AND BORDER PROTECTION
DELIVERY ORDER HSBP1011J00217 (P00004) awarded to VETERAN CORPS OF AMERICA, was modified for the amount of $0
DELIVERY ORDER HSBP1011J00217 (P00004) awarded to VETERAN CORPS OF AMERICA, was modified for the amount of $0. Agency: U. S. CUSTOMS AND BORDER PROTECTION
DELIVERY ORDER HSBP1015J00159 (P00006) awarded to MOTOROLA SOLUTIONS, INC., was modified for the amount of $0
DELIVERY ORDER HSBP1015J00159 (P00006) awarded to MOTOROLA SOLUTIONS, INC., was modified for the amount of $0. Agency: U. S. CUSTOMS AND BORDER PROTECTION
DELIVERY ORDER EDFSA15O0014 (P00002) awarded to HP ENTERPRISE SERVICES, LLC, was modified for the amount of $0
DELIVERY ORDER EDFSA15O0014 (P00002) awarded to HP ENTERPRISE SERVICES, LLC, was modified for the amount of $0. Agency: EDUCATION, DEPARTMENT OF
PURCHASE ORDER HSBP1010P00265 (P00001) awarded to CARRILLO INVESTMENTS INC, was modified for the amount of $0
PURCHASE ORDER HSBP1010P00265 (P00001) awarded to CARRILLO INVESTMENTS INC, was modified for the amount of $0. Agency: U. S. CUSTOMS AND BORDER PROTECTION
DEFINITIVE CONTRACT 75A50118C50005 (P00007) awarded to CONTRACTING RESOURCES GROUP, INC., was modified for the amount of $91,238.4
DEFINITIVE CONTRACT 75A50118C50005 (P00008) awarded to CONTRACTING RESOURCES GROUP, INC., was modified for the amount of $0
DEFINITIVE CONTRACT 70Z08024CMECP0004 (P00003) awarded to NORTH POINT MARINE & INDUSTRIAL INC, was modified for the amount of $0
DELIVERY ORDER HSTS0512FACQ012 (P00001) awarded to PREMIER MANAGEMENT CORPORATION, was modified for the amount of $582,110.16
DEFINITIVE CONTRACT NGA14FC1665GS (P00011) awarded to MASTER CARE FLOORING, INC., was modified for the amount of -$3,698
DELIVERY ORDER 70B06C18F00000906 (P00001) awarded to FS PARTNERS LLP, was modified for the amount of $0
DELIVERY ORDER HSBP1011J00217 (P00004) awarded to VETERAN CORPS OF AMERICA, was modified for the amount of $0
DELIVERY ORDER HSBP1015J00159 (P00006) awarded to MOTOROLA SOLUTIONS, INC., was modified for the amount of $0
DELIVERY ORDER EDFSA15O0014 (P00002) awarded to HP ENTERPRISE SERVICES, LLC, was modified for the amount of $0
PURCHASE ORDER HSBP1010P00265 (P00001) awarded to CARRILLO INVESTMENTS INC, was modified for the amount of $0
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