Procurement
PO Closeout

A subcontract is administratively complete when all subcontract activities identified by the Buyer on the subcontract Closeout Checklist have been completed.

Closeout is the process of reviewing the subcontract file to ensure that all requirements of the subcontract have been satisfied, settle all outstanding contractual issues, and complete all outstanding documentation requirements (e.g., all items are delivered, services are rendered, government furnished property is accounted for, inventions identified and patent clearances documented, and funds de-obligated). Closeout follows physical completion and includes all the activities up to and including issuing final payment and preparing the subcontract file for archiving. There are two types of PO closeout processes:

1. The Simple Closeout Process can be used to close fixed-price subcontracts that do not involve property, patents, and other closeout activities. The subcontract can be closed as soon as it is physically complete / received and the final invoice is paid.
   
2. The Formal Closeout Process is used for more complex subcontracts and includes additional activities to assure that the subcontractor has fulfilled all of its contractual obligations. Procurement’s Closeout Checklist contains closeout activities and forms that must be completed before a PO can be closed.

The Closeout Time Standard specifies the number of days by which the closeout process must be completed after physical completion of the subcontract (all materials ordered are delivered and all services ordered are rendered). Refer to the Closeout Policy section of this website for further information.

Deobligation means removing the lien from the subcontract.

Divisions may ask the assigned Buyer to arrange with the subcontractor for the closeout of a subcontract before its currently-stated expiration date.

POs are subject to the PO Closeout Process after reaching their expiration dates. These dates are shown in FMS as either the Due Date (for one-time POs) or the End Date (for extended-term/blanket POs). For extended term POs about to expire, a Renewal notice is emailed to the Division at 3 months and 1 month prior to the End Date. Divisions then decide if they want to renew or allow the PO to go through the closeout process.

The Oracle/PeopleSoft software system used to track POs issued by the Laboratory to a subcontractor. The system also handles payments to subcontractors, receipts of material, and assign costs to LBNL projects.

A PO is financially complete when there are no longer any liens appearing in FMS for the PO. The PO is financially complete when:

• The PO is closed in FMS
• The buyer reduces the PO's amount to the amount invoiced/vouchered

(A PO can be financially complete but still not be administratively complete.)

• Open Status: When buyer is working on the PO
• Dispatched Status: After the buyer has awarded the PO or modification
• Complete Status: The PO is closed in FMS Ñ releasing all liens.

GFP is property owned by the government and made available to a subcontractor for its use during the performance of work under a specific subcontract with the Laboratory. The term includes government-furnished equipment and government-furnished supplies.

SAP is property that the subcontractor acquires or otherwise provides under the terms of a subcontract and to which the government takes title.

Refer to GFP/SAP for additional information.

An invoice is an itemized bill from a subcontractor for goods sold or services provided. The invoice contains information such as individual prices, the PO # and the amount to be paid by the Laboratory. The invoice must meet minimum standards and be appropriately sent to LBNL Accounts Payable as outlined in the subcontract.

A voucher is a financial transaction in FMS that is created by Accounts Payable from the information contained on a subcontractor’s invoice. The voucher is used to facilitate the payment process to the vendor based on the method of choice provided from the vendor.

The FMS process of matching voucher amounts (invoices entered into FMS by Accounts Payable) to PO amounts and receipts (if applicable). When the voucher's amount matches the PO amount, the voucher will be paid. When the sum of all vouchers matches the PO total, the PO is considered matched.

Read definition HERE (SP 4.4).

Physical completion or physically complete means that the subcontractor has provided the required deliverables and the Laboratory has accepted these items; the subcontractor has performed all required services and the Laboratory has accepted these services; the term of the subcontract, including any option periods, has expired; or the Laboratory has given the subcontractor a notice of complete subcontract termination.

The terms "Extended Term" and "Blanket POs" are used interchangeably on this website. There are two types of POs:

• One-Time POs: These are POs that call for the one-time delivery of goods or services to the Lab. They may cover the delivery of a particular piece of equipment or the one-time performance of a service. Goods are sent to Receiving which will create a receipt for them. Services may be the one-time repair of equipment.
• Extended Term (Blanket) POs: These are POs where work is performed by a subcontractor over an extended period of time - often a year or more. There is a series of goods or services delivered to the Lab over a period between the Start Date and End Date specified on the PO with a corresponding series of invoices sent to the Lab by the subcontractor.

These terms are used interchangeably on this website. A procurement specialist is an individual who is responsible for the solicitation, negotiation, award, and administration of subcontracts. The term refers to a buyer, subcontract administrator, contract specialist, or other procurement professional.

If required, Procurement will send a Subcontract Closeout Memo (in the form of a Google Docs website survey) to be completed by Division Technical Representatives/Requesters as part of the closeout process after the PO's physical completion. Refer to sample.

The terms Subcontractor, Vendor, and Supplier are used interchangeably on this website. A Subcontractor is the party to whom the University issues a subcontract under the Prime Contract for goods or services for the Laboratory. A Subcontractor is also called "Supplier." The Subcontractor is entered into the Laboratory's Financial Management System (FMS) as a Vendor.

Acknowledgment by the Division Technical Representative / Requester that the supplies or services conform to applicable subcontract requirements for quantity and quality. Acceptance may take place before, at the time of, or after delivery, depending upon the provisions of the subcontract.

A Technical Representative (Tech Rep) is an individual at the Lab who oversees the technical aspects of a subcontract and is responsible for division closeout activities.