FAR and DFARS › FAR Part 4: Administrative and Information Matters › Subpart 4.8
FAR 4.804-1 Closeout by the office administering the contract.
The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.
In plain English
This section sets time standards for the government to close out contract files after physical completion, with different deadlines depending on the contract type. It also lists situations where a contract file cannot be closed, such as when the contract is in litigation or under appeal. Contractors should be aware of these timelines because they affect when final payments, deobligation of excess funds, and administrative wrap-up occur.
Applies to: Contracts administered by the office administering the contract
Key terms: simplified acquisition procedures · firm-fixed-price contracts · settlement of indirect cost rates · physical completion · quick closeout procedures
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(a) Except as provided in paragraph (c) of this section, time standards for closing out contract files are as follows:
(1) Files for contracts using simplified acquisition procedures should be considered closed when the contracting officer receives evidence of receipt of property and final payment, unless otherwise specified by agency regulations.
(2) Files for firm-fixed-price contracts, other than those using simplified acquisition procedures, should be closed within 6 months after the date on which the contracting officer receives evidence of physical completion.
(3) Files for contracts requiring settlement of indirect cost rates should be closed within 36 months of the month in which the contracting officer receives evidence of physical completion.
(4) Files for all other contracts should be closed within 20 months of the month in which the contracting officer receives evidence of physical completion.
(b) When closing out the contract files at 4.804-1(a)(2), (3), and (4), the contracting officer shall use the closeout procedures at 4.804-5. However, these closeout actions may be modified to reflect the extent of administration that has been performed. Quick closeout procedures (see 42.708) should be used, when appropriate, to reduce administrative costs and to enable deobligation of excess funds.
(c) A contract file shall not be closed if—
(1) The contract is in litigation or under appeal; or
(2) In the case of a termination, all termination actions have not been completed.
← 4.804 Closeout of contract files. · 4.804-2 Closeout of the contracting office files if another office administers the contract. →
Rule changes for FAR Part 4
- Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 1, 2, 4, 33, 39, 40, and 53 ↗ · proposed 2026-06-23 · comments due 2026-07-23
- Federal Acquisition Regulation: Inflation Adjustment of Acquisition-Related Thresholds ↗ · final rule 2025-08-27 · effective 2025-10-01
- Federal Acquisition Regulation: Small Business Innovation Research and Technology Transfer Programs ↗ · proposed 2025-06-12
- Federal Acquisition Regulation: Controlled Unclassified Information ↗ · proposed 2025-01-15 · comments due 2025-03-17
- Federal Acquisition Regulation: Disclosure of Greenhouse Gas Emissions and Climate-Related Financial Risk ↗ · proposed 2025-01-13
- Federal Acquisition Regulation: Rerepresentation of Size and Socioeconomic Status ↗ · final rule 2025-01-03 · effective 2025-01-17
- Federal Acquisition Regulation: Prohibition on Unmanned Aircraft Systems From Covered Foreign Entities ↗ · final rule 2024-12-30
- Federal Acquisition Regulation: Inflation Adjustment of Acquisition-Related Thresholds ↗ · proposed 2024-11-29 · comments due 2025-01-28
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.