Department of Commerce Low Risk Closeout Initiative

Description

The Department of Commerce (DoC), Shared Services Procurement Office (SSPO)* contract portfolio includes expired contracts that are over-age, as the period of performance or final delivery date of these contracts has expired, and the time prescribed for contract file closeout has elapsed. SSPO's contract closeout backlog presents not only a significant burden to legacy acquisition and financial systems but also impedes SSPO's efforts to appropriately archive expired contracts and prepare for transition and migration to modernized financial and procurement systems in the future. To clear this backlog of over-age contracts SSPO is implementing a limited-use case procedure that will enable closeout of these contracts in an efficient and cost-effective manner. These procedures include identification of those expired contracts that can be closed out in a streamlined manner based on certain criteria under which they are considered to be low risk. These contracts are identified in the attached spreadsheet (SSPO_Low Risk Targeted Closeout List). The procedures SSPO developed to significantly reduce the backlog of expired contracts will enable DoC to expeditiously close those actions. SSPO developed the procedures using risk-based management principles by identifying and classifying open, expired contracts as low risk based on one (or more) of the following criteria such that either: i) the contract period of performance expired during or prior to the end of Fiscal Year 2020 (viz., 9/30/2020) and consequently the five-year period for recording, adjustment, and/or liquidation (payment) of any associated contractual obligations expired on 9/30/2025; or ii) the contract period of performance expired during or prior to the end of Fiscal Year 2024 (viz., 9/30/2024) and the contract has had no invoice or payment activity within the past 12 months and there are no known outstanding invoices; or iii) the contract period of performance expired during or prior to Fiscal Year 2025 (viz., 9/30/2025), the contract type is Fixed Price or Time-and-Materials with fully burdened hourly labor rates with either no or fixed indirect rates on materials, the undelivered obligation (UDO) balance is $10,000.00** or less, and the contract has no known outstanding invoices. To facilitate the closeout of these contracts, SSPO requests that contractors with contracts identified on this list submit any outstanding invoices to the cognizant invoicing office with a copy to SharedServicesProcurement@doc.gov no later than April 30, 2026 (i.e., within 45 days after the publication of this notice). Beginning May 1, 2026, SSPO anticipates implementing streamlined closeout procedures for the closeout of contracts in this list and deobligating UDO amounts as applicable. The closeout procedures include unilaterally deobligating UDO amounts and closing out contracts determined to meet one or more of the criteria above. Notwithstanding SSPO's intention to expeditiously closeout the actions identified in the aforementioned list, contractors' rights are protected under 41 U.S.C. chapter 71 Contract Disputes (commonly known as the Contract Disputes Act of 1978), which establishes procedures for filing claims against Federal Government contracts. Normal contract file retention requirements will apply after closeouts (See FAR 4.805, Storage, handling, and disposal of contract files.). Any questions regarding this notice may be directed to SSPO at SharedServicesProcurement@doc.gov. *NOTE 1: SSPO was previously named Enterprise Services-Acquisition (ES-A). The change in name from ES-A to SSPO took effect in October 2024. **NOTE2: Additional risk-based management principles may be applied prior to the unilateral deobligation of UDO amounts for contracts meeting criteria iii, including further coordination with the Office of General Counsel.