Sec. 812. Contract closeout authority
341 words·~2 min read·
/bill/114/s/2814/is/section-812·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Notwithstanding any other provision of law or regulation, the Secretary of Defense may close out a contract or group of contracts as described in subsection
(b)through the issuance of one or more modifications to existing Department of Defense contracts without completing a reconciliation audit or other corrective action as more specifically described in subsection
(c)and the regulations promulgated by the Secretary pursuant to subsection (f). To accomplish closeout of such contracts— remaining contract balances may be offset with balances in other contract line items within a contract regardless of the year or type of appropriation previously or currently obligated to fund each contract line item and regardless of whether either appropriation has closed; and remaining contract balances may be offset with balances on other contracts regardless of the year or type of appropriation previously or currently obligated to fund each contract and regardless of whether either appropriation has closed; Contracts covered by this section are contracts or a group of contracts between the Department of Defense and a defense contractor that— were entered into prior to fiscal year 2000; have no further supplies or services deliverables due under the terms and conditions of the contract; and are determined by the Secretary of Defense to be not otherwise reconcilable because— the records have been destroyed or lost; or the records are available but the Secretary of Defense has determined that the time or effort required to determine the exact amount owed to the government or amount owed to the contractor is disproportionate to the amount at issue. Any contract or contracts covered by this section may be closed out through a negotiated settlement with the contractor. In any case where this authority is exercised, the cognizant payment or accounting offices may adjust and close any open finance and accounting records. No liability will attach to any accounting, certifying, or payment official or contracting officer for any adjustments or closeout made pursuant to this authority. The Secretary of Defense shall prescribe regulations for the administration of the authority under this section.