Effective May 20, 2021, The Department of Defense (DoD) issued a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS). The rule adds a new contract clause at DFARS 252.204-7022, Expediting Contract Closeout, and a prescription for the clause at DFARS 204.804-70. This final rule will allow government contractors to expedite the contract close out process by a waiver between the contractor and Government of entitlement to any residual dollar amounts that are due to either party at the time of contract closeout up to $1,000. As of the end of fiscal year 2020, according to the Government, there were an estimated 20,884 DoD contracts with total residual contract amounts valued at approximately $1,844,101 that meet the criteria for application of the rule.

Chess Consulting has successfully assisted government contractors with analyzing and summarizing cost data for a significant number of contracts spanning many years in support of final vouchers to the Government. We assist clients throughout the life cycle of a government contract including pre-award, post-award, and dispute-related matters. We bring to each engagement a unique combination of government contracting regulatory expertise, technical financial accounting and reporting knowledge, and an understanding of our client’s business processes, risks, and challenges.

If you have questions or need assistance, please click the “contact us” button below to be connected with one of our experts.