Project Close-Out Guidelines
Purpose
The purpose of this document is to provide guidance on the practice called Project Close-Out
and to describe the practice overview, requirements, best practices, activities, and key terms
related to these requirements. In addition, templates relevant to this practice are provided at the
end of this guide.
Practice Overview
The practice of project close-out finalizes all project activities completed across all phases of
the project to formally close the project and transfer the completed or cancelled project as
appropriate. The purpose of project closeout is to assess the project, ensure completion, and
derive any lessons learned and best practices to be applied to future projects. However, in
multi-phase projects, the close-out practice may be applied at various stages of the project;
upon deliverable completion, upon phase completion, upon iteration completion, at designated
times during the project's life, or at whatever other juncture represents a completed segment of
project work. Applying the close-out practice in this manner closes out only the portion of the
project scope and associated activities applicable to that portion of the project.
The practice of project close-out consists of two main activity groups:
Administrative Closure - The administrative closure process defines activities,
interactions, and related roles and responsibilities of the project team members and
other stakeholders involved in executing the administrative closure procedure for the
projects.
Performing the administrative closure process includes integrated activities to collect
project records, analyze project success or failure, gather lessons learned, transfer the
project products or services to production and/or operations, and archive project
information for future use by the organization. Among other activities administrative
closure includes:
 Confirming the project has met all sponsor, customer, and stakeholder
requirements
 Verifying that all deliverables have been delivered and accepted
 Validating exit criteria have been met
Contract Closure — Contract closure includes activities and interactions needed to
settle and close any contract agreements established for the project, as well as those
related to supporting the formal administrative closure of the project.
Contract closure involves verification that all work has been completed correctly and
satisfactorily, updating of contract records to reflect final results, and archiving
information for future use. Among other activities contract closure includes:
 Confirming the project has addressed the terms and conditions of the contracts
 Confirming completion of exit criteria for contract closure
 Formally closing out all contracts associated with the completed project
Project close-out should be anticipated and planned as early as possible in the project lifecycle
even though it is often the last major process of a project's life.
Project closeout is critical, yet for one reason or another, it's an area that's often left loose at
the ends - with the potential for disastrous consequences.
Professionals who closeout properly create significant benefits for themselves, their
organization and for others - better success prospects for future projects, increased
employee motivation, better customer relations, improved attractiveness to repeat and
new business and so on...
General Guidance
To ensure the timely and orderly closeout of Title II programs, CSs:
 Should familiarize themselves with closeout-related references and key
provisions, as set forth in Sections 3 and 4 below.
 Should incorporate closeout management functions and responsibilities,
relevant.costs, and other closeout activities into the original program proposal and,
per the guidance, keep USAID/Food for Peace (FFP) informed of any potential
closeout difficulties during the life of the activity (LOA).
 Should begin closeout preparation no less than 6 months prior to the end of the
agreement for Development Activity Programs (DAPS) and Multi-Year
Assistance Programs (MYAPs), and 3 months for Single-Year Assistance
Programs (SYAPs). An exit or sustainability strategy should be developed before
this time to ensure that its recommended plans of action, activities, and resource
transfers/disposition requests are captured within the Closeout Plan itself.' To best
do so, CSs should coordinate with their FFP/W and Mission/regional office on all
stages of the closeout process.
 Must submit a detailed list of activities, inventory for disposition, action items and
expenses (with a budget and a narrative) and property disposition plan related to
closeout in a Closeout Plan to be submitted to FFP/W. This applies to all CSs
implementing DAPs, MYAPs and/or SYAPs, as set forth in Section 7.111 below.
The World Food Programme (WFP) is exempt from this guidance.
 Must communicate regularly with FFP/W and the relevant Mission/regional office
to complete all closeout actions, including any outstanding claims or vouchers, as
stipulated in the Closeout Plan and U.S. Government (USG) regulations until they
have met all remaining obligations to USG.
Practice Activities

Convene a meeting with project leadership, project managers and appropriate
team members
 Discuss activities on the closeout checklist
 Assign leads to relevant activities to make sure the closeout activity is completed
 Conduct a post-project survey

Compile a close-out report showing final status of deliverables, issues, changes,
risks, costs, etc.
 Consider rolling unresolved issues and changes into the next phase of the project or
into a new project
 Obtain final, formal approvals on deliverables
 Conduct formal contract close-out
 Conduct formal administrative closure
 Remove sensitive information from computers and project work areas
 Return borrowed equipment
 Perform configuration audit
 Reassign remaining project staff to other assignments
 Conduct project audit
 Conduct post-project training for project team, customers, and/or operations team
 Regulatory close-out requirements
 Conduct lessons learned review meeting
 Conduct a client wrap-up meeting or project close-out meeting
SUMMARY ON CLOSE-OUT:
1) Provide a brief summary of why the project is being suspended/terminated and the
implications, if any, for the country and Title II beneficiaries, the project, and the CS's
in-country operations.
2) Provide a brief summary of resources provided over the life of the project by USAID,
the CS, the host government, other donors and beneficiaries. Also briefly summarize the
sectors supported, and the location in the country where investments were made.
3) Provide a brief summary (by component if relevant) of where the project is at this
point in meeting its stated goals and objectives, and where it will be at the date of
close out.
4) State whether there have been any recent audits of the project (or will be) and the
status of resolving outstanding audit recommendations. Attach a copy of the audit to
the close-out plan or send separately to the USAID Mission and BHR/FFP (if this has
not already occurred).
5) State whether there have been (or will be) a final or impact evaluation of the project.
If it has been completed, attach a copy of the evaluation to the close-out plan or send
separately to the USAID Mission and BHR/FFP (if this has not already occurred). If an
evaluation has not been completed but is planned, discuss briefly plans to carry out the
evaluation and if possible, attach the evaluation Scope of Work (SOW).
I. LESSONS LEARNED:
Provide a brief summary of lessons learned from the project that might be
relevant to design, implementation and evaluation of other Title II projects,
either in the present country or others.
II. CLOSE-OUT SCHEDULE:
Provide a detailed implementation plan and schedule for closing out the project that details
the disposition of property and equipment; the termination of staff; the finalization of all
audits, evaluations and required reports; the settling of claims; and other critical
activities.
III. FINAL REPORTS:
Provide any reports (e.g. final report, Annual Results Report, Final Evaluation) required
either in the project agreement, or in writing by USAID.
IV. DISPOSITION OF COMMODITIES, ASSETS, EQUIPMENT, AND FUNDS:
1) Commodities: Prior to the project completion date, all commodities should be
distributed to the intended recipients. If this is not possible, the CS should propose an
alternative solution, and advise the Mission and BHR/FFP of the quantities, location and
condition of the food.
2) Non-expendable property/equipment procured through Section 202(e), monetization
or other USAIDprovided funds: The close-out plan should include an inventory of all
non-expendable property/equipment procured with funds provided by USAID, or
obtained through a monetization of Title II commodities with a unit acquisition cost
exceeding $5000, and with a useful life estimated to exceed two years. The CS should
describe how it proposes to dispose of each piece of property and what will be done with
the proceeds if the items are sold. (Note: for additional information on and definitions of
non-expendable property/equipment (as defined by the U.S. Government), please check
OMB Circular 110, Subpart A and/or USAID's 22CFR, sections 226.2, 226.34 and
226.71).
3) Monetization-Generated Local Currency and Program
Closeout Administration
 Return all personnel loaned to project
 Complete personnel performance evaluations
Closeout Contracts
 Ensure that all open issues are resolved with the customer
 Return or destroy all customer's proprietary documents at the customer's direction
 Help the customer conduct an audit of completed scope
 When the customer is happy, receive final payments
Conduct a Lessons Learned Review
 Conduct a survey
 Hold the lessons learned meeting
Build a Project History File
 Document planned & actual schedule duration and include data on past similar
completed projects
 Document planned & actual labor costs and include past data
 Document all approved changes to PM plan
 Document all meetings minutes
 Document all problems
 Document subcontractor performance records
 Document customer satisfaction records
 Document project reviews
Create the Final Project report
 Describe the overall success of the project
 Describe organization on the project
 Describe recommended changes for other similar projects
 Describe techniques used to get results
 Describe project strengths & weaknesses
 Describe project team recommendations
Celebrate Success
 Involve everyone on the project
 Gather outside the working environment
 Recognize outstanding performers
Conduct Post-Project Assessment and Lessons Learned
In addition to communicating the closure of a project in writing, it is also advisable to
have a mechanism for group review & assessment of the project. Lessons learned
should draw on both positive experiences— good ideas that improve project
efficiency or save money, and negative experiences— lessons learned only after an
undesirable outcome has already occurred. Lessons learned sessions are a valuable
closure mechanism for team members, regardless of the project's outcome.
The lessons learned session is typically a meeting that includes:
 Project team
 Stakeholder representation including external project oversight, auditors,
and/or QA
 Executive management
 Maintenance and operations staff
 Project support staff
Participants in lessons learned sessions typically discuss questions similar to the
following:
 Did the delivered product meet the specified requirements and goals of the
project?
 Was the customer satisfied with the end product(s)? If not, why not?
 Where costs budgets met? If not, why not?
 Was the schedule met? If not, why not?
 Were risks identified and mitigated? If not, why not?

Did the project management methodology work? If not, why not?

What could be done to improve the process?

What bottlenecks or hurdles were experienced that impacted the
project?

What procedures should be implemented in future projects?

What can be done in future projects to facilitate success?
 What changes would assist in speeding up future projects while
increasing communication?
Lessons learned and comments regarding project assessment should be documented,
presented, and openly discussed with the intent of eliminating the occurrence of
avoidable issues on future projects.
Project Close-out Checklist
Project Name:
Project Number:
Modification Dates:
Date:
Agency:
Prepared by:
Item
1
Post Implementation Evaluation
Report (PIER)
2
Archive Project Information
2.2
Archive information in project
repository.
3
Financial Closure
Status
Comments
Best Practices
The following approaches are recommended best practice to project close-out:
 Involve Stakeholders - Involve all project participants and stakeholders in the
close-out process.
 Use a Checklist - Review the close-out checklist template to make sure all key items
have been completed.
 Solicit Feedback - Conduct a post-project survey to solicit feedback on the project
from the project team, customers, and stakeholders who were well-acquainted with the
management of the project.
 Identify Lessons Learned - Convene a lessons learned session to promote the success
of future projects.
 Archive Data - Archive all project data in a central repository. Include best
practices, lessons learned, and any other relevant project documentation. Formal
data archives should be stored in compliance with US National Archives and
Records Administration (NARA) regulations.
 Celebrate - Celebrate and reward project success.
 Phased Close-Out - The project closing process is generally phased over a period of
time, rather than being a single event. Depending on the project type, project close out
can begin as deliverables are completed, iterations/phases closed, or at the end of the
project. The project manager must ensure that the sponsor and steering committee
understand and support the project closing process to reduce final project
implementation risks.
 Manage Resources - The project manager may face requests to release staff from the
project team before all project closing tasks are finished. The project manager should
anticipate these requests, considering both project goals and staff capabilities.
 Confidentiality - Upon closing subcontractor contracts, consider the confidentiality of
the contracts before potentially sharing with the client.
Close Procedures
(a) Recipients shall submit, within 90 calendar days after the date of completion of the
award, all financial, performance, and other reports as required by the terms and
conditions of the award. The Federal awarding agency may approve extensions when
requested by the recipient.
(b) Unless the Federal awarding agency authorizes an extension, a recipient shall
liquidate all obligations incurred under the award not later than 90 calendar days after
the funding period or the date of completion as specified in the terms and conditions of
the award or in agency implementing instructions.
(c) The Federal awarding agency shall make prompt payments to a recipient for
allowable reimbursable costs under the award being closed out.
(d) The recipient shall promptly refund any balances of unobligated cash that the
Federal awarding agency has advanced or paid and that is not authorized to be retained
by the recipient for use in other projects. OMB Circular A-129 governs unreturned
amounts that become delinquent debts.
(e) When authorized by the terms and conditions of the award, the Federal awarding
agency shall make a settlement for any upward or downward adjustments to the Federal
share of costs after closeout reports are received.
(f) The recipient shall account for any real and personal property acquired with
Federal funds or received from the Federal Government in accordance with Sections
. 3 1 through . 3 7 .
(g) In the event a final audit has not been performed prior to the closeout of an award,
the Federal awarding agency shall retain the right to recover an appropriate amount
after fully considering the recommendations on disallowed costs resulting from the
final audit.
.72 Subsequent adjustments and continuing responsibilities.
(a) The closeout of an award does not affect any of the following.
(1) The right of the Federal awarding agency to disallow costs and recover funds
on the basis of a later audit or other review.
(2) The obligation of the recipient to return any funds due as a result of later
refunds, corrections, or other transactions.
(3) Audit requirements in Section . 2 6 .
(4) Property management requirements in Sections .31 through .37.
(5) Records retention as required in Section .53.
(b) After closeout of an award, a relationship created under an award may be modified
or ended in whole or in part with the consent of the Federal awarding agency and the
recipient, provided the responsibilities of the recipient referred to in paragraph
.73(a), including those for property management as applicable, are considered
and provisions made for continuing responsibilities of the recipient, as appropriate.
.73 Collection of amounts due.
(a) Any funds paid to a recipient in excess of the amount to which the recipient is finally
determined to be entitled under the terms and conditions of the award constitute a debt to
the Federal Government. If not paid within a reasonable period after the demand for
payment, the Federal awarding agency may reduce the debt by (1), (2) or (3).
(1) Making an administrative offset against other requests for reimbursements.
(2) Withholding advance payments otherwise due to the recipient.
(3) Taking other action permitted by statute.
(b) Except as otherwise provided by law, the Federal awarding agency shall charge
interest on an overdue debt in accordance with 4 CFR Chapter II, "Federal Claims
Collection Standards."