Sec. 836. CONTRACT CLOSEOUT AUTHORITY
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## SEC. 836 CONTRACT CLOSEOUT AUTHORITY **[**[10 U.S.C. 2302 note](/us/usc/t10/s2302)**]** ###
(a)Authority 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 such contracts without completing a reconciliation audit or other corrective action. To accomplish closeout of such contracts— ####
(1)remaining contract balances may be offset with balances in other contract line items within a contract regardless of the year or type of appropriation obligated to fund each contract line item and regardless of whether the appropriation for such contract line item has closed; and ####
(2)remaining contract balances may be offset with balances on other contracts regardless of the year or type of appropriation obligated to fund each contract and regardless of whether the appropriation has closed. ###
(b)Covered Contracts This section covers any contract or group of contracts between the Department of Defense and a defense contractor, each one of which— ####
(1)was entered into— #####
(A)with respect to a contract or group of contracts not described in subparagraph (B), at least 7 fiscal years before the current fiscal year; and #####
(B)with respect to a contract or group of contracts for military construction (as defined in section 2801 of title 10, United States Code) or shipbuilding, at least 10 fiscal years before the current fiscal year; ####
(2)the performance or delivery has been completed at least 4 years before the current fiscal year; and ####
(3)is determined by the Secretary of Defense to be not otherwise reconcilable because— #####
(A)the records have been destroyed or lost; or #####
(B)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 United States Government or amount owed to the contractor is disproportionate to the amount at issue. ###
(c)Negotiated Settlement Authority Any contract or group of contracts covered by this section may be closed out through a negotiated settlement with the contractor. ###
(d)Waiver Authority ####
(1)In general The Secretary of Defense is authorized to waive any provision of acquisition law or regulation to carry out the authority under subsection (a). ####
(2)Notification requirement The Secretary of Defense shall notify the congressional defense committees not later than 10 days after exercising the authority under subsection (d). The notice shall include an identification of each provision of law or regulation waived. ###
(e)Adjustment and Closure of Records After closeout of any contract described in subsection
(b)using the authority under this section, the payment or accounting offices concerned may adjust and close any open finance and accounting records relating to the contract. ###
(f)No Liability No liability shall attach to any accounting, certifying, or payment official, or any contracting officer, for any adjustments or closeout made pursuant to the authority under this section. ###
(g)Regulations The Secretary of Defense shall prescribe regulations for the administration of the authority under this section.
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Sec. 836
CONTRACT CLOSEOUT AUTHORITY
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