FAR 4.804-2—Closeout of the contracting office files if another office administers the contract.
Plain-English Summary
FAR 4.804-2 explains how the contracting office closes its own contract file when another office, usually the contract administration office, has been responsible for administering the contract. It covers two different closeout paths: simplified acquisition procedures, where the file may be considered closed when the contracting officer has evidence of receipt of property and final payment unless agency rules say otherwise, and all other contracts, where the file is closed as soon as practicable after the contracting officer receives a contract completion statement from the contract administration office. The section also requires the contracting officer to verify that all required contractual actions are complete and to prepare a written statement confirming that fact. That statement serves as the authority to close the file and must be placed in the official contract file. In practice, this provision is about ensuring the contracting office does not close its records prematurely and that there is a documented basis for file closure when administration has been handled elsewhere.
Key Rules
Simplified acquisition closeout
For contracts using simplified acquisition procedures, the contracting file should be considered closed when the contracting officer has evidence that the property was received and final payment was made. Agency regulations may set a different rule, so local policy must be checked.
Other contracts need completion statement
For all other contracts, the contracting office may close the file only after it receives a contract completion statement from the contract administration office. This ties file closure to formal confirmation that administration is finished.
Verify all actions complete
Before closing the file, the contracting officer must make sure every required contractual action has been completed. This includes confirming that no outstanding closeout actions remain.
Written authority to close
The contracting officer must prepare a statement that all required actions are complete. That statement is the authority for closing the contract file and must be included in the official file.
Close as soon as practicable
Once the required completion statement is received, the contracting office should close the file promptly. The rule does not allow unnecessary delay after closeout conditions are satisfied.
Responsibilities
Contracting Officer
Determine whether the contract file is ready for closeout, verify that all required contractual actions have been completed, prepare the written statement authorizing closure, and ensure the statement is placed in the official contract file.
Contract Administration Office
For contracts administered by another office, provide the contract completion statement that signals administration is complete and supports file closeout by the contracting office.
Agency
For simplified acquisition procedures, establish any agency-specific rules that modify when the file is considered closed and ensure internal closeout procedures align with FAR requirements.
Practical Implications
This section prevents premature closeout by requiring proof that final payment, receipt of property, or completion of administration has actually occurred.
Contracting officers should not rely on informal assurances; they need the required evidence or completion statement and a documented determination in the file.
Agency supplements matter for simplified acquisitions, so contractors and contracting personnel should check local procedures before assuming the FAR default applies.
A missing completion statement or missing written authority to close can delay file closeout and create records-management problems.
The rule is especially important when administration is split between offices, because the contracting office remains responsible for the official file even if another office handled performance oversight.
Official Regulatory Text
(a) Contract files for contracts using simplified acquisition procedures should be considered closed when the contracting officer receives evidence of receipt of property and final payment, unless otherwise specified by agency regulation. (b) All other contract files shall be closed as soon as practicable after the contracting officer receives a contract completion statement from the contract administration office. The contracting officer shall ensure that all contractual actions required have been completed and shall prepare a statement to that effect. This statement is authority to close the contract file and shall be made a part of the official contract file.