(Editor’s Note.  The following will hopefully provide the impetus to close out old contracts and especially help contractors collect additional amounts due.)

The Defense Department directed all its agencies and military departments to provide necessary funds to facilitate speedy closeout of old contracts.  The joint letter by Procurement head Deidre Lee and Deputy CFO JoAnn Boutelle stresses that contract closeouts are a major DOD-wide priority and since a significant number of contracts cannot be closed because of lack of funds, resource managers are told to quickly respond to contracting officers’ requests for additional funds.  Additional funding may be needed because unanticipated events such as material and labor increases, schedule slippages and other difficulties creating an imbalance between requirements and funding.  The letter states greater vigilance should be focused on providing funds during contract performance when, for example, contractors inform the government under the Limitation of Cost and Limitation of Funds clauses of cost type contracts that additional funds will be required to complete the contracts.