The FAR contains a number of warranty clauses that are suitable for use in various acquisition situations. Some of the warranty clauses may go far beyond the physical conclusion of the contract. As long as no contract item number (CLIN) or money is deposited for the extended warranty, the contract cannot only remain open for the warranty. The contractor must have a process in place to manage a guarantee element and, if necessary, the contract can be reopened at any time via the Closed Contracts Database (CCDB). It is not because a contract is concluded in Mechanization of Contract Administration Services (MOCAS) that the contractor releases from his contractual obligation to work in accordance with the warranty clause. If a contract contains provisions for extended trial periods after shipment and before the final declaration of acceptance, if the final payment is withheld by the contractor, the contract must be moved to section 3 of the MOCAS and coded with “GUA”. When a contract is moved to section 3, the R2 indicator deletes the information that was in the reason code for the R2 overrun period and transmits the information to the R6 and is in the R6 while the contract is in section 3. As a result, an ALN alert is generated for the Administrative Contracting Officer (ACO) 21 calendar days prior to the actual overrun date or estimated completion date (EPD) as it appears in R6. All state contract assets that are the subject of a contract must have the proper disposition in order for a contract to be concluded.
Contracts can only be concluded if Note R9 Code 55 has been included in the Mechanisation of Contract Administration Services (MOCAS). If the Report on Inventions and Subcontracting (Form DD 882) contains a report on patentable inventions, or if the Administrative Subcontractor (ACO) has reason to believe that a negative Form DD 882 has not disclosed an invention, the COA should not impose a 60-day strain on a response to patent approval and must seek authorization for the purchase activity. If an invention is included in the Final Report (DD882), the Contractor must indicate whether they plan to file a patent on Form DD 882. (Please check if these blocks are marked.) If the entrepreneur is undecided at that time, we should contact him regularly (even if he officially has 2 years to decide). The need for regular monitoring is – the entrepreneur may have forgotten a disclosed invention or simply decided not to submit it and not to inform us about it. If the contract includes FAR 52.227-9, Royalty Refund, the Contractor must provide a final royalty report detailing the royalties paid or payable. This report must be submitted before the final payment of the contract. Prime contractors use procedures similar to those of the government. The Administrative Contracts Officer (ACO) must ensure that all Prime subcontracts are paid and concluded before the main contract is eligible for the conclusion of the contract. All ongoing actions and liabilities must be resolved prior to closing. The Government may terminate contracts in whole or in part at any time during the performance of the contract due to late payment or for reasons of convenience. The government may terminate a contract for late payment if the contractor has substantially breached the contract by failing to comply with the requirements of the contract.
In the event of termination due to delay, the Contractor will be responsible for any additional costs incurred by the government to receive the cancelled items. The government may also terminate a contract for convenience. Termination for convenience may occur if the convention or program office withholds funding or if the user determines that the item is no longer needed. Under the “Termination for Convenience” clause, FAR 52.249, the government is responsible for certain costs. Far 4.804-5 states that once a contract management office (CMO) receives physical proof of completion, it verifies the status of contract funds and notifies the Contracting Officer (PCO) at the beginning of the closure process of any surplus funds available for derogation. It is recommended to send this notification by e-mail with an acknowledgment of receipt to confirm the notification. If there are surplus or negative unliquidated funds, a review of the fund should be conducted at the Accounting Classification Reference Number (ACR) level to determine the cause. At the physical end of a contract, a copy of Form DD 1593 will be sent to the appropriate Industrial Security Office with the note “Copy of Information”. The competent industrial safety office can be found on the DD Form 254 contract. The Administrative Contracting Officer (ACO) does not require confirmation or attestation of the actions taken by the Security Office to proceed with the completion.
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