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 Cognos 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 Cognos report “Expired PO Report for Divisions” is available for departments to track their Purchase Orders eligible for closeout. They are either approaching or past their end date or due date.
A link to the Cognos folder for the report is here.
- The report will prompt for either Division or a specific Project or Program and a date range for the End Date of the PO.
- The “From” Date should be left at the default “Earliest Date.”
- The “To” Date can either be today (to see those that are overdue), or a date in the future so you can see what is coming up.
How to use the report:
- Look for extended-term contracts that are approaching or past their end dates and work with a Procurement Specialist to provide any requested closeout documents.
- The contract or Purchase Order should be renewed or the PO Closeout Process will begin automatically.
The Purchase Orders are sorted by the PO Term End Date.
The Closeout Time Standard 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|