Whitepaper: Addressing Contract Closeout Challenges

Released April 21, 2020

Timely contract closeout is important, and today, there is a large and growing contract closeout challenge. In large measure, this is due to the increase of recently completed indirect rate audits by the Defense Contract Audit Agency (DCAA).  As a result, it is critical that industry and agencies coordinate to identify potential strategies to reduce the current contract closeout backlog, as well as avoid potential future backlogs.  

From an industry standpoint, timely contract closeout has cash flow implications resulting from over or under-billing positions, as well as a significant internal investment in resources necessary to support the closeout process. Similarly, federal agencies require comparable investment in agency and contracted resources to support administering contract closeout actions, impacting funds available to support agencies’ missions. However, and more importantly, agencies can identify excess funds available for deobligation and use. 

PSC is making a number of recommendations for administrative and legislative action, detailed below in the section on “Strategies for Moving Forward.”  

Click here to read the white paper.