The PO Closeout Process begins near the end of a contract or Purchase Order’s life, when the contract or Purchase Order is physically complete (in other words, the supplier has furnished the goods or services specified).
The PO Closeout Process includes the review of the contract or Purchase Order to ensure that all requirements of the agreement have been fulfilled, all outstanding contractual issues are settled, and all documentation requirements have been met.
The simple Closeout Process can be used to close fixed-price contracts or Purchase Orders that do not involve property, patents or other closeout activities. The contract or Purchase Order can be closed as soon as the goods or services are received and the final invoice is paid. Most purchases fall under this type.
The Formal Closeout Process is used for more complex contracts or Purchase Orders and includes additional activities to ensure that the supplier has fulfilled all of its contractual obligations. You may be contacted by the Procurement Specialist to complete additional forms.
Before Subcontract Award
When entering an ePro Requisition, complete the Technical Representative, Requester and Resource Analyst fields.
After Subcontract Award
Run periodic reports from FMS and BRS to track expiring contracts or Purchase Orders.
Keep track of Government Furnished Property/Subcontractor Acquired Property.
GFP is property owned by the government and made available to a supplier for its use during the performance of work under a specific contract with the Laboratory. The term includes government-furnished equipment and government-furnished supplies.
SAP is property that the supplier acquires or otherwise provides under the terms of a contract and to which the government takes title.
After Completion of Work
If requested by your Procurement Specialist, complete the Subcontract Closeout Memo at conclusion of the contract or Purchase Order.
If work is completed early, contact the Procurement Specialist to arrange for the early closeout of the contract or Purchase Order.
The Procurement Specialist assigned to your contract or Purchaser Order can assist you with closeout activities. Refer to the Procurement Directory.
The FMS “Expired PO Report for Divisions” is available for departments to track their contracts or Purchase Orders eligible for closeout. They are either approaching or past their end date or due date.
This report is accessed through FMS as follows:
- Access the EXPIRED_PO_REPORT_DIV query
- Enter your Department ID (i.e. PH for Physics or EEEA for Energy Analysis) and click the View Results button. This query will take approximately two minutes to run.
How to use the report:
- Look for extended-term contracts or one-time Purchase Orders that are approaching or past their end dates. Work with a Procurement Specialist to provide any requested closeout documents.
When you view the report in Excel, you will see a list of expired contracts or Purchase Orders (those that are past their due dates or end dates) and extended term contract or Purchase Orders that are within 30 days of their end date. The contract or Purchase Order should be renewed or the PO Closeout Process will begin automatically.
The contracts or Purchase Orders are sorted by the number of Days Past Target Closeout Date.
Description: The description appearing on the first line of a Purchase Order.
Category: The Item Category appearing on the first line of the Purchase Order.
Due Date: The date when items are to be shipped to the Laboratory or when services are to begin. Mainly applicable to One-time Purchase Orders.
End Date: The date when an Extended-term Purchase Order is scheduled to end.
CO Time Standard: The PO Closeout time standard assigned to all Purchase Orders.
Target CO Date: The date by which all PO Closeout activities are to be completed.
Days Past Target Date: The number of days the Purchase Order is past the Target PO Closeout Date.
- A positive number indicates the Purchase Order is past the time it should have been closed.
- A negative number indicates the days remaining until the Purchase Order should be closed.
CO Initiated Date: The date entered by Procurement that shows when PO Closeout activities began.
CO Activities Complete: The date entered by Procurement that shows when all required PO Closeout activities are complete (that is, Administratively Complete).
Match Status: Indicates the status of a Purchase Order’s invoices:
- Matched — The Purchase Order has been totally invoiced. Invoices have been received and paid equaling the total amount authorized on the Purchase Order.
- Partially (matched) — Some invoices have been received and paid on the Purchase Order, but they do not add up to the total amount authorized on the Purchase Order.
- To Match — No invoices have been received yet from the supplier.
Receiving: Shows Y if any of the Purchase Order lines have been designated in FMS by the Procurement Specialist as Receiving Required. It indicates that items will ship to the Laboratory and must be formally received by the Receiving Department in order for the vendor to be paid.
Project: The Project ID appearing on the last line of the Purchase Order.
WFO Award: Indicates the Purchase Order is funded by a Work for Others (WFO) project.
A Closeout Time Standard is automatically assigned and is based on the type of contract or Purchase Order. The Closeout Time Standard specifies the number of days by which the PO Closeout Process must be completed after expiration or physical completion of the contract or Purchase Order (all materials ordered are delivered and all services ordered are rendered).
Here are the basic time standards:
|PO Closeout Code||Contract or Purchase Order Description||Time Standard for Closeout After Physical Completion|
|1A||Small purchases (<=$150k) that do not involve property, settlement of interim/provisional indirect cost rates, research & development, construction, or architecture & engineering.||As a rule, most will close within 100 days of final payment|
|1B||Small purchases (<=$150k) that involve property but do not involve settlement of interim/provisional indirect cost rates, research & development, construction, or architecture & engineering.|
|2A||Purchases >$150k that do not involve property, settlement of interim/provisional indirect cost rates, research & development, construction, or architecture & engineering.|
|3||Purchases that involve settlement of interim/provisional indirect cost rates||36 months|
|4||All other purchases that do not involve settlement of interim/provisional indirect cost rates, e.g. time and material (including fixed rate with reimbursables), non-fixed price research contracts, etc. unless another standard applies||20 months|