Order Close-out Clause Samples
The Order Close-out clause defines the process and conditions under which an order may be terminated or finalized before its natural completion. Typically, this clause outlines the steps both parties must follow to close out an order, such as providing notice, settling outstanding obligations, and returning or disposing of goods or materials involved. Its core practical function is to provide a clear and orderly mechanism for ending contractual obligations related to an order, thereby reducing disputes and ensuring both parties understand their responsibilities at the conclusion of the transaction.
Order Close-out. The OCO is responsible for closing out individual Orders under the Basic Contract. The Contractor agrees to cooperate with the OCO to close out Orders as soon as practical after expiration, cancellation or termination of each Order. Order close-out will be accomplished within the guidelines set forth in: FAR Part 4 Administrative Matters and FAR Part 42 Contract Administration and Audit Services. The Government is encouraged to utilize FAR 42.708, Quick-Closeout Procedures to the maximum extent practicable. The OCO has the authority to negotiate settlement of indirect costs in advance of the determination of final indirect cost rates if the Order is physically complete and the amount of unsettled indirect cost to be allocated to the Order is relatively insignificant (See FAR 42.708(2)). A determination of final indirect costs under quick-closeout procedures shall be final for the Order it covers and no adjustment shall be made to other Orders for over-or under-recoveries of costs allocated or allocable to the Order covered by the agreement. Once agreement for quick-closeout is reached on an individual Order, a bilateral modification will be issued to closeout the Order. Final invoices which result in a charge to the government in excess of $250 or refunds to the Government in excess of $250 shall be processed prior to quick-closeout of the Basic Contract. Amounts due to the Contractor or refundable to the Government of less than $250 will be considered insignificant and will not be processed.
Order Close-out. The Contractor will cooperate with the OCO to support timely Order closeout.
Order Close-out