When do contract close-outs occur?

When do contract close-outs occur?

• A. When performance is complete
• B. At the start of performance
• C. Immediately after award
• D. Only for fixed-price contracts

Answer: (A)

Contract close-out is the formal ending of a contract once all work is completed and every administrative action has been finished. It means the deliverables have been accepted, final payments have been made, any remaining funds have been deobligated, and the contract file is closed. Because of this, close-out happens when performance is complete, not at the start of performance, not immediately after award, and it isn’t limited to fixed-price contracts.

Contract close-out is the formal ending of a contract once all work is completed and every administrative action has been finished. It means the deliverables have been accepted, final payments have been made, any remaining funds have been deobligated, and the contract file is closed. Because of this, close-out happens when performance is complete, not at the start of performance, not immediately after award, and it isn’t limited to fixed-price contracts.