# Subpart 504.8 - Government Contract Files

## 504.800 Scope of subpart.

1. (a) This subpart prescribes a contract file format standard for all contracts that exceed the micro-purchase threshold. This subpart may be applied to purchases at or below the micro-purchase threshold.

2. (b) The purpose of this standard is to ensure that the documentation in the file complies with FAR 4.801(b)(1) and FAR 4.802(c) requirements.

## 504.802 Contract files.

1. (a) Contract files shall be maintained electronically, unless otherwise determined, in writing, by the HCA to be prohibitively burdensome.

2. (b) The contracting officer must place all information and documentation required by FAR 4.802 and 4.803 in the contract file and organize the file in the format as set out in each individual contracting activity's contract file standard.

3. (c) Contracting officer responsibilities.

   1. (1) The contracting officer is responsible for the official contract file. Individuals creating documents relating to the contract must provide those documents to the contracting officer for inclusion in the file. Other members of the acquisition team may be responsible for the maintenance and archival of any delegated responsibilities (e.g., contract administration and delegated contract administration function) according to prescribed contracting activity policies and procedures.

   2. (2) The contracting officer shall-

      1. (i) Place all information and documentation required by the FAR (see FAR subpart 4.8), the GSAM, and any other policy and procedure in the contract file.

      2. (ii) Include an index or checklist identifying the location of any documentation contained in the contract file when such identification is not already prescribed by policy. The index or checklist can be electronic.

      3. (iii) Identify in a clear and logical manner, within the contract file, any documentation maintained in another location.

      4. (iv) Comply with applicable file and document naming convention/nomenclature requirements.

   3. (3) When responsibility for a contract transfer from one contracting officer to another contracting officer (e.g., employee departure, transfer of assignments, or redelegation of contract administration authority (intraoffice or interoffice))-

      1. (i) The successor contracting officer shall review the files being transferred. The purpose of the review is to identify any issues with the contract file (e.g., missing or incomplete documentation or information).

      2. (ii) The successor contracting officer shall attempt to resolve any issues identified during their review of the transferred files. The successor contracting officer should write a memo-to-file that documents any issues with the contract file that were not able to be resolved as part of the transfer.

4. (d) Head of contracting activity responsibilities. Head of contracting activities consistent with their delegated authorities are responsible for-

   1. (1) Developing policies and procedures that discuss, at a minimum, the following:

      1. (i) The different types of files identified in FAR 4.801(c) along with any other files that are to be established (e.g., unsolicited proposals);

      2. (ii) The location where file documentation is to be stored (e.g., an electronic contract filing system, another official system of record, or some type of combination thereof). If file documentation must be stored in different locations, the policy and procedure shall discuss the rationale for the need (e.g., separation of classified and unclassified documentation) and medium (e.g., paper) to be used;

      3. (iii) The approach used to identify the documents to be retained within a contract file (see FAR 4.803) and any other files established per paragraph (d)(1)(ii) of this section (e.g., use of a checklist or index that includes the citation of the authority for retaining a document);

      4. (iv) The organization(s) or individual(s) responsible for maintaining file documentation when such responsibility does not reside with the contracting officer (see 504.802(b));

      5. (v) The filing and document convention/nomenclature to be used;

      6. (vi) The content, access, and other applicable requirements for contracting officer representative (COR) contract files (see FAR 1.604) and any other files (see paragraph (a) of this section); and

      7. (vii) The internal controls (e.g. quarterly review by the contracting activity) to be used for ensuring compliance with FAR, GSAM, and other requirements.

   2. (2) Designating a point of contact within its organization for purposes of supporting file audits and reviews by internal and external organizations (e.g., the Procurement Management Review (PMR) office). Support may include, but not be limited to:

      1. (i) Providing copies of applicable policies and procedures;

      2. (ii) Assisting in resolving issues (e.g., locating a contract file) and questions;

      3. (iii) Providing access to files and systems; and

      4. (iv) Notifying the contracting officer of the status of the review or audit.

## 504.803 Contents of contract files.

In addition to the examples of contract file documents described in FAR 4.802 and listed in FAR 4.803, the contract file shall include, if applicable, the following:

1. (a) GSA Form 2689 (see 519.502-70 for applicability), and

2. (b) Checklist documenting review of the small business subcontracting plan (see 519.705-4 for applicability).

3. (c) Documents required by individual contracting activity in accordance with such activity's internal policies and procedures.

## 504.804 [Reserved]

### 504.804-5 Procedures for closing out contract files.

1. (a) HCAs are directed to take appropriate steps to ensure that physically completed contracts are formally closed in accordance with the procedures at FAR 4.804, GSAM 504.804-5, and guidelines provided below for simplified acquisitions and contracts with residual balances. HCAs are reminded that when closing out contract actions at FAR 4.804-1(a)(2), (3), and (4), the contracting officer shall use the closeout procedures at FAR 4.804-5. However, these closeout actions may be modified to reflect the extent of administration that has been performed. Contracting activities that have supplemented the FAR procedures with instructions pertinent to the specific contract types, business systems, and resources employed are encouraged to continue the use of such supplements.

2. (b) Contracting officers must be vigilant and proactive with respect to proper contract closeout procedures. They must not allow completed contracts to remain open indefinitely or allow a failure to conduct timely closeout to violate regulatory or statutory requirements, or negatively impact GSAs accurate and timely financial reporting.

3. (c) Under FAR 4.804-1(a)(1), the contracting officer only needs evidence of receipt of goods and services and final payment to closeout the contract files. For contracts awarded under the simplified acquisition procedures, contracting officers shall ensure that the contract award document and the statement of work includes the following statement:

   “For payment purposes, the contractor shall mark its final invoice for payment as Final Invoice for Payment.”

   1. (1) For task and delivery orders awarded under these procedures, the orders shall also include the statement above.

   2. (2) Contracting officers shall instruct contracting officer representatives or project managers receiving supplies and services under the simplified acquisition procedures to forward copies of the receiving report and final invoice to the contracting officer for contract close-out purposes.

4. (d) Cancellation of open items with residual balances.

   1. (1) Open item balances (remaining) of $100,000 and below should be canceled if deemed invalid following the procedures below. Service and Staff Office (SSO) funds managers (persons certifying the availability of funds) will have the authority and responsibility to cancel balances if deemed invalid. Only valid obligations should be retained in the financial accounting system.

   2. (2) The following procedures should be followed to cancel invalid obligations:

      1. (i) The SSO funds managers will generate a list of proposed deobligations and present it to the contracting officer and his/her director for review and approval.

      2. (ii) The contracting officer or director shall respond to the SSO funds manager within 45 days, justifying in writing why any open item on the list should not be canceled.

      3. (iii) If the funds manager receives no response from the contracting officer, the funds manager is authorized to take appropriate steps to deobligate the open items in the accounting and business systems.

      4. (iv) When a contracting officer approves the cancellation of obligation under items b or c, above, the contracting officer shall prepare the appropriate documents necessary (e.g., contract modification) for the contract file.

5. (e) These actions by the SSO funds managers shall be considered an internal financial accounting action and shall have no bearing on the Government’s rights and duties under the contracts until the contracting officer officially closes the contract.

6. (f) Non-contracting officer acquisitions. For newly created open items that did not require the signature of a contracting officer (GSAM 501.603-1(f)) the funds manager has the authority to correct or cancel any open item not deemed valid. Examples of such document types include micropurchases using the governmentwide commercial purchase card, internal GSA orders and security clearances (e.g., IX, IY, GX). The funds managers should follow the financial systems procedures outlined in this memorandum for cancellation and should inform the originator of the open item of the cancellation.

## 504.805 Storage, handling, and disposal of contract files.

The contracting officer’s accountability for contract files ends when the following three conditions exist:

1. (a) The files’ retention period expires.

2. (b) The contracting officer receives the notice of disposal from the National Archives and Records Administration.

3. (c) The records liaison officer whose organization has functional responsibility for the files approves disposal.