ONR: The Closeout Process
Presented By:
C.C. Everley
ONR Seattle Regional Office
April 2008
DISTRIBUTION STATEMENT C: Approved distribution authorized
to U.S. Government agencies and their contractors; Administrative
Or Operational Use 28 APR 2008
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ONR’s Regional Offices
SEATTLE
ATLANTA
CHICAGO
SAN DIEGO
BOSTON
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The information to be presented can be
found at www.onr.navy.mil
Title: ONR UBA: Closeout of Contracts and Grants
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ONR: The Closeout Process
General overview of the closeout process,
policies and procedures
Details about deliverables and other actions
unique to the closeout process
Forms, instructions and web-based guidance
and links
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What is closeout?
It is a layered process
1.
2.
3.
The process of documenting and assuring the
fulfillment of the terms and conditions of the
award
Of certifying awardees compliance with
applicable regulations and terms and
conditions.
Making final disposition of all award byproducts, such as final vouchers, reports,
patent disclosures and property.
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Why is Closeout important?
Government acceptance of the final
deliverables and reports is critical to the
overall success of the project. In many
instances, this act of final acceptance can
cause the release of final payments to the
awardee, and ultimately lead to release of the
awardee from lingering obligations under the
award.
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“ Contract closeout is the most unheralded
phase of the procurement process, yet,
when performed efficiently and
effectively, it can protect the
government’s interests and free up
significant dollars for current-year
program priorities.”
From ESI Int’l Contracting Programs Catalog 2005-2006
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Differences
Contracts
 FAR 4.804-5
 Certification of final costs
 Small Business requirements
Assistance Awards
 DoDGARS
http://www.dtic.mil/whs/directives/corres/html/32106r.ht
m
 NASA Grant Handbook
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PURPOSE OF CLOSEOUT IS TO ENSURE THAT……
1. Awardee has complied with the terms and conditions
set forth in the award, including timely submission of
the deliverables
2. Disposition of classified information is completed
3. Final patent and technical reports are accepted by the
agency
4. Plant and property clearance received and all property
is fully dispositioned
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PURPOSE IS TO ENSURE THAT……
5. Final costs have been reviewed and accepted, any
disallowed
costs are settled including:
>Subcontract settlement/closeouts
>Open year indirect cost rates
>Submission of final invoice
>De-obligation of funds completed (for which
we have delegation) or recommended to
the buying agency
6. Small Business requirements have been fulfilled
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Types of Delegations
ONR services all of DoD, as well as non DoD customers
(NIH, NASA, DOI, etc.)


Functions performed depend on the delegation we
receive from the buying command
Some delegations we have:
Full delegation (Most DoD)
Property and Closeout (Most NASA)
Voucher only
Property only (NIH)
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Award-Specific Terms & Conditions
EACH AWARD IS DIFFERENT
A thorough knowledge of specific terms and
conditions, especially relating to final deliverable
requirements is a prerequisite for a complete
understanding of the closeout process
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Contracts

FAR 52 provisions provide detailed procedures for contract
closeout

DFARS, NMCARS
Grants & Cooperative Agreements

DoD Grant and Agreement Regulations (DoDGARs) provides
procedures for assistance instruments

Also, OMB Circular A-110 Subpart D “After-the AwardRequirements” provides additional guidance
NASA Awards

NASA Grant Handbook provides assistance for NASA awards
Other agencies (i.e. Army/Air Force) have their own terms and
conditions
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Role of the ONR ACO/AGO
(Administrative Grants/Contracting Officer)
With the help of other staff members:


Solicit the awardee for the required deliverables,
including providing any forms, guidance or other
counsel relative to the closeout process
Ensure that the submittals meet the administrative
requirements of the terms and conditions of the award
Distribution was correct, in the correct format etc.
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AGO/ACO Role Continued..
Contact and follow up with issuing
agency/procurement offices following submittal to
gain acceptance or facilitate necessary changes to
the deliverables
Conduct formal administrative closeout of the award,
including completion of relevant forms, certifications
and releases, review and acceptance of final cost
reports and certification of final vouchers
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When does ONR start the Process?
Once the award is physically complete, e.g., the
period of performance has expired, the “clock
begins ticking” for submission by the awardee of
final deliverables required for the award
Often the awardee is notified via e-mail that the
award has expired and is reminded of the
deliverables required and due date
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Awardees Responsibilities
Make sure that all reports are sent to the correct
people/agencies

Generally, awards will include instructions
relative to the distribution of each deliverable
including number of copies and mailing
addresses
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Helpful Tool….
AdminWeb
Database for awardees to submit reports
Can be found at:
http://www.onr.navy.mil/
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Typical Deliverables and
Due Dates
In General :
Final Technical Reporting
90 days after expiration
Final Patent Reporting
90 days after expiration
Final Cost Reporting
90 days after expiration
Final Property Reporting
90 days after expiration
Final Security Reporting
90 days after expiration
Final Small Business Reporting
30 days after expiration
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Helpful Tool….
All required documents can be found on the
ONR website:
http://www.onr.navy.mil/
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Final Technical Report
Usually due by 90 days after award expiration-check
award terms and conditions for clarification and required
distribution
Format: contractor/recipient can use any format
acceptable to the awarding agency. They should
contact the Program Manager if questions arise.
Include form SF 298 “Report Documentation Page”
Acceptance is provided by awarding agency
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Technical Performance
DD 250 (For some contracts)
DD 250 : Material Inspection and Receiving Report
Instructions will be noted in Section E and/or in
the CDRL (Contract’s Data Requirements
Listing) in the contract.
Acceptance is provided by awarding agency
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Final Patent Report
Form DD 882
Acceptance is provided by awarding agency
*Patent reports are usually required even if they are
negative
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Final Cost Reporting
Assistance Awards
DoD: Form SF 269
Contracts
Voucher Form:
SF1034/SF 1035
NASA: Form SF 272
Also need to submit:
Contractor’s
Release and
Assignment forms
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Final Property Reporting
The final property reports are generally concerned with
where title to property vests- i.e. with the Government or
the recipient.
Forms Used:
 DoD : DD 1662 (soon to be obsolete)
 NASA: Contracts : NASA form 1018
Grants : Letter with signature (e-mail in some
instances) will suffice for negative reports or
for instances where title vests with the
recipient.
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ACO Role in Final Property Reporting
Vesting of Title Determination
Coordinate Disposition of Property with Plant
Clearance Officer
Reporting of the Property Closeout Process
to interested parties
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Final Security Closeout
* Government obtains awardee certification
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What is “Acceptance” of a Final Report?
Definition of acceptance: FAR 46.101
Acceptance can take many different forms and is driven
by the type of award and the individual terms and
conditions.
Common forms of acceptance:
 Government correspondence indicating or
certifying acceptable final deliverables or
performance


DD 250-Material and Acceptance Report (most
often used in cost-type or fixed fee contracts)
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Electronic communication from Program Managers
Administrative Contracting Officer
Duties in Accepting Final Costs
The ONR ACO/AGO will conduct a final financial review
of the costs incurred under a given award, to ensure that
all costs are reasonable, allocable, and allowable. This
review may take the form of :
Primary reliance on the OMB Circular A-133 financial
audit which characterizes the overall abilities of the
awardee’s management control and incurred cost
systems. The audits are generally performed by an
independent auditor and reviewed by the cognizant audit
agency.
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Additional Forms of Cost
Acceptance When Needed
A desk review, where cost elements originally
budgeted in the proposal are compared and
contrasted with those costs actually incurred
A full audit of the individual award, as conducted
by the cognizant federal agency for audit of the
awardee’s institution, either Department of
Health and Human Services or Defense Contract
Audit Agency. These are generally reserved for
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high-dollar awards.
Cost Acceptance/Non-Acceptance
During the financial review process, the ACO/AGO may
disallow or accept final costs, and will execute the final
completion voucher releasing any residual payments still
due
He or she will also execute several forms internal to the
government, including a final contract/grant completion
statement summarizing the acceptance of final deliverables.
The forms will be sent to the awarding agency for final
actions that are needed
Award will be administratively closed for all functions that
were delegated
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Quick Closeout
(For Contracts Only)
Reference: FAR 42.708
Only applies to finalization of provisional
indirect rates on cost contracts (not
necessary when rates are already fixed or
predetermined)
Usually more applicable to major cost type
subcontracts awarded to for-profit
entities under non-profit/university prime
contracts
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Quick Closeout
(For Contracts Only)
Maximum indirect cost allocation to one
contract using QC is $1 million & total
indirect cost allocations per FY to all
contracts using QC cannot exceed 15% of
total indirect costs allocated to all cost
contracts
Contact ONR ACO for guidance/coordination
for either potential prime or subcontract
application.
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Impact of Prioritizing Closeouts
Reduced backlog of expired awards by 45%
Reduced age of “old dogs” by 50%
Achieved active/expired ratio of 75% / 25%
Currently operating in maintenance mode
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Collaborative Workspace
Firewall
Collaborative
Workspace
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What’s in The Future…
Public Law 106-107
 Grants Streamlining
 Electronic Reporting Systems
Across Agencies
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My Contact Information
C.C. Everley
everlec@onr.navy.mil
(206) 548-7239
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