Because the closing of subcontracts eliminates the Laboratory’s liability, it is imperative that closeout commence and be completed as soon as possible after the subcontract is physically complete, unless some unique or peculiar circumstances preclude the closing.
Each PO is automatically assigned a Closeout Time Standard—depending on the type of subcontract. The Closeout Time Standard specifies the number of days by which the closeout process must be completed after expiration / physical completion of the subcontract (all materials ordered are delivered and all services ordered are rendered). Here are the basic time standards:
Time Standard |
Description |
Time After Physical Completion |
| 1A | Small purchases (<=$150k) that do not involve property, settlement of interim/provisional indirect cost rates, R&D, construction, or A&E |
Generally will close within 100 days of final payment |
| 1B | Small purchases (<=$150k) that involve property but do not involve settlement of interim/provisional indirect cost rates, R&D, construction, or A&E |
|
| 2A | Fixed price subcontracts >$150k that do not involve property, settlement of interim/provisional indirect cost rates, R&D, construction, or A&E | |
| 2B |
|
6 months |
| 3 | Subcontracts that involve settlement of interim/provisional indirect cost rates | 36 months |
| 4 | All other subcontracts that do not involve settlement of interim/provisional indirect cost rates, e.g. time and material (including fixed rate with reimbursables), non-fixed price research subcontracts, etc. unless another standard applies | 20 months |
