Department of Commerce Low Risk Closeout Initiative
The Department of Commerce (DoC), Shared Services Procurement Office (SSPO), formerly known as Enterprise Services-Acquisition, is implementing a Low Risk Closeout Initiative to address a backlog of over-age expired contracts. This special notice, identified by solicitation number 1331L524-ES-A-LowRiskCloseouts, outlines a limited-use case procedure designed to efficiently archive files and prepare for migration to modernized financial and procurement systems. The initiative targets contracts where the period of performance has expired and the time for file closeout has elapsed, specifically focusing on those classified as low risk based on established risk-based management principles.
Eligible contracts meet specific criteria, such as having a period of performance that expired on or before September 30, 2020, or those expiring through fiscal year 2024 with no payment activity in the past 12 months. Additional criteria include fixed-price or time-and-materials contracts expiring by fiscal year 2025 with an undelivered obligation (UDO) balance of $10,000.00 or less and no outstanding invoices. Two Excel attachments, titled SSPO_Low Risk Targeted Closeout List and ES-A_Low Risk Closeout List, identify the specific actions subject to these procedures.
The response deadline for contractors to submit any final outstanding invoices to the Shared Services Procurement Office is April 30, 2026. Following this date, the agency anticipates implementing streamlined procedures to unilaterally deobligate remaining UDO amounts and close the identified contract files. While the agency intends to expedite these closures, contractor rights remain protected under 41 U.S.C. chapter 71, and standard contract file retention requirements will apply post-closeout. This initiative is managed by the DEPT OF COMMERCE ESO Shared Services Procurement Office.
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The Department of Commerce (DoC), Shared Services Procurement Office (SSPO)* contract portfolio includes expired contracts that are over-age, as the period of performance or final delivery date of these contracts has expired, and the time prescribed for contract file closeout has elapsed. SSPO's contract closeout backlog presents not only a significant burden to legacy acquisition and financial systems but...
View morei) the contract period of performance expired during or prior to the end of Fiscal Year 2020 (viz., 9/30/2020) and consequently the five-year period for recording, adjustment, and/or liquidation (payment) of any associated contractual obligations expired on 9/30/2025; or
ii) the contract period of performance expired during or prior to the end of Fiscal Year 2024 (viz., 9/30/2024) and the contract has had no invoice or payment activity within the past 12 months and there are no known outstanding invoices; or
iii) the contract period of performance expired during or prior to Fiscal Year 2025 (viz., 9/30/2025), the contract type is Fixed Price or Time-and-Materials with fully burdened hourly labor rates with either no or fixed indirect rates on materials, the undelivered obligation (UDO) balance is $10,000.00** or less, and the contract has no known outstanding invoices.
To facilitate the closeout of these contracts, SSPO requests that contractors with contracts identified on this list submit any outstanding invoices to the cognizant invoicing office with a copy to [email protected] no later than April 30, 2026 (i.e., within 45 days after the publication of this notice).
Beginning May 1, 2026, SSPO anticipates implementing streamlined closeout procedures for the closeout of contracts in this list and deobligating UDO amounts as applicable. The closeout procedures include unilaterally deobligating UDO amounts and closing out contracts determined to meet one or more of the criteria above.
Notwithstanding SSPO's intention to expeditiously closeout the actions identified in the aforementioned list, contractors' rights are protected under 41 U.S.C. chapter 71 Contract Disputes (commonly known as the Contract Disputes Act of 1978), which establishes procedures for filing claims against Federal Government contracts. Normal contract file retention requirements will apply after closeouts (See FAR 4.805, Storage, handling, and disposal of contract files.).
Any questions regarding this notice may be directed to SSPO at [email protected].
*NOTE 1: SSPO was previously named Enterprise Services-Acquisition (ES-A). The change in name from ES-A to SSPO took effect in October 2024.
**NOTE2: Additional risk-based management principles may be applied prior to the unilateral deobligation of UDO amounts for contracts meeting criteria iii, including further coordination with the Office of General Counsel.