DEFENSE LOGISTICS AGENCY

 HEADQUARTERS

 8725 JOHN J. KINGMAN ROAD

 FORT BELVOIR, VIRGINIA 22060-6221

March 2, 2021

MEMORANDUM FOR RECORD (MFR)

SUBJECT: Administrative Approved Standards Change (ADC) 1163A, DLM 4000.25, DLMS 

Volume 7, Chapter 4, Contract Completion Status Reporting (Contract 

Administration/Closeout)

The attached administrative change to DoD Enterprise Business Standards, as outlined 

in the attachment, is approved for implementation.

Addressees may direct questions to Ms. Tonja Carter, e-mail: Tonja.Carter@dla.mil

Others must contact their designated PRC representative available at

http://www.dla.mil/HQ/InformationOperations/DLMS/allpoc/

THOMAS A. DELANEY 

Director, Enterprise Business Standards Office

Attachment

As stated 

cc: 

ODASD(Logistics)

OUSD(C) 

OUSD(A&S/DPC)
Attachment, ADC 1163A

Page 1

ADC 1163A

DLM 4000.25, Volume 7, Chapter 4, 

Contract Completion Status Reporting

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION: Defense Pricing 

and Contracting (DPC), Program Development and Implementation (PDI)

a. Technical POC: DPC PDI, (703) 697-4440, or (703) 697-4384

b. Functional POC: Enterprise Business Standards Office, Tonja Carter, Contract 

Admin, (269) 961-5227, Tonja.Carter@dla.mil

2. FUNCTIONAL AREA LOGISTICS AND TRANSACTION CHANGES: 

a. Primary/Secondary Functional Area: Contract Administration and Contract 

Closeout

b. Primary/Secondary Functional Process: Financial Management and Records 

Retention

3. REFERENCES:

a. Defense Logistics Manual (DLM) 4000.25, Volume 7, Chapter 4, Contract 

Completion Status Reporting

b. Procedures, Guidance and Information (PGI) 204.804-1, Closeout by the Office

Administering the Contract

c. Approved DLMS Change (ADC) 1163, Automated Contract Closeout using the 

DLMS 567C and Update Non-Automated Contract Closeout Procedures using the DLMS 567C, 

dated June 25, 2015

d. Wide Area Work Flow (WAWF) Engineering Change Proposal (ECP) 1087 Critical 

Design Review (CDR), Version 5.10.1, Contract Closeout Clause Table Changes

e. WAWF Engineering Change Proposal (ECP) 1107 CDR, Version 5.10.1, Expansion 

of Contract Closeout Module

f. Defense Federal Acquisition Regulation Supplement (DFARS) 204.804, “Closeout of

contract files

g. FAR 4.804 “Closeout of Contract Files”

h. PGI 213.307-3 Cancellation of a unilateral purchase order
Attachment, ADC 1163A

Page 2

4. APPROVED CHANGE(S):

a. Brief Overview of Change: This approved change will:

(1) Remove the duplicate reference to criteria that would preclude automated 

closeout in DLM 4000.25, Volume 7 (Reference 3.a.), and reference the PGI 204.804-3 

automated contract closeout criteria (Reference 3.b.).

(2) Modify the DLMS 567C to remove the ability to cancel a unilateral purchase 

order not accepted by the contractor.

(3) Updated terminology to reflect the change to Procurement Integrated 

Enterprise Environment (PIEE).

b. Background:

(1) ADC 1163 (Reference 3.c.) addressed the automated contract closeout 

process using the DLMS 567C. Specific details for this change are contained in WAWF ECP 

1087 Contract Closeout Table Changes and ECP 1107 Expanded Contract Closeout Module 

(References 3.d. and 3.e.). The DFARS PGI 204.804-3 (Reference 3.b.) and DLM 4000.25, 

DLMS Volume 7, Chapter 4 (Reference 3.a.) reference the criteria to qualify a contract for the 

automated closeout process. To maintain integrity and reduce administrative updates, Volume 7, 

Chapter 4 will point to PGI 204.804-3 as the authoritative reference for automated contract 

closeout criteria. This change will minimize confusion regarding which FAR clauses represent 

contracts qualified for the automated contract closeout process.

(2) After implementation of the automated contract closeout module, the DPC 

Team identified that cancellation of a unilateral purchase order would not done with a DLMS 

567C. It would be accomplished by contract modification, which uses the Procurement Data 

Standard (PDS) or an 860 Purchase Order Change as noted in DFARS PGI 213.307-3 (Reference 

3.g.)

c. Approved Change in Detail:

(1) In Volume 7, Chapter 4, remove the reference to automated closeout 

eligibility criteria and point to PGI 204.804-3 (Reference 3.b.) as the single authoritative 

reference for the appropriate FAR clauses. See Enclosure 1.

(2) In Volume 7, Chapter 4, revise the wording to cancel a unilateral purchase 

order to require a contract modification and remove that as an option in the DLMS 567C. See 

Enclosures 1 and 2.

(3) In Volume 7, Appendix 1 and the DLMS 567C, remove Contract Closeout 

Status Report Code H “Cancelation of a unilateral purchase order not accepted by the contractor”

d. Revisions to Defense Logistics Manuals:

(1) Update Volume 7, Chapter 4, and Appendix 1 (Enclosure 1).
Attachment, ADC 1163A

Page 3

(2) Update DLMS 567C Contract Completion Statement/ Unclosed Contract 

Status/Contract Close-out (Enclosure 2).

e. Alternatives: None

5. REASON FOR CHANGE: Reduces duplicate sources of information.

6. ADVANTAGES AND DISADVANTAGES:

a. Advantages: Reduces the amount of time required to update information sources and 

reduces the probability of using incorrect FAR Clauses. 

b. Disadvantages: None

7. ESTIMATED TIMELINE/IMPLEMENTATION TARGET: Upon signature of the 

Approved Change.

8. ESTIMATED SAVINGS/COST AVOIDANCE ASSOCIATED WITH 

IMPLEMENTATION OF THIS CHANGE: None

9. IMPACT: 

a. New/Changes to Data Elements: None. Change is to the list of codes used in a 

DLMS Data Element.

b. Automated Information Systems (AIS): None. The implementation of the 

Procurement Data Standard (PDS) for contract modifications allowed for the contract 

modification to serve that purpose and the use of the 567C for that purpose became redundant

c. Defense Automatic Addressing System (DAAS): None.

d. Non-DLM Publications: DPC updated PGI 204.804-3 automated contract closeout 

criteria (Reference 3.b.).
Enclosure 1, ADC 1163A

Page 1

Enclosure 1

Defense Logistics Manual (DLM) 4000.25, Volume 7, Contract Administration

Make the following change to Volume 7. Additions are identified by bold red italics and 

deletions by double strikethrough text. 

Chapter 4, Contract Completion Status Reporting Updates

Preceding text not shown

C4.10.2.1. CAO Issuance. Those issued by the CAO:

C4.10.2.1.1. The unclosed contract status (Code D);

C4.10.2.1.2. The final contract completion statement for a small purchase 

(Code A);

C4.10.2.1.3. The interim contract completion statement for a large purchase 

(Code B); and

C4.10.2.1.4. The final contract completion statement for a large purchase (Code 

C).

C4.10.2.2. PO Issuance. The transaction issued by the PO is the contract closeout 

extension (Code E)

C4.10.2.3. DFAS Issuance. The transaction issued by DFAS is the financial contract 

completion statement (Code F).

C4.10.2.4. Wide Area Work Flow (WAWF)Invoicing, Receipt, Acceptance and 

Property Transfer (iRAPT). The final contract completion statement for automated contract 

closeouts (Code G); and

Intervening text not shown

C4.11. AUTOMATED CONTRACT CLOSEOUT

C4.11.1. Purpose. The Automated Contract Closeout is a systemic process in the Contract 

Closeout module accessible from the Procurement Integrated Enterprise Environment 

(PIEE) Wide Area Work Flow (WAWF) eBusiness Suite home screen for Electronic 

Document Access (EDA) users with an active ‘Upload/Inactive Contracts’ role. This will apply 

where notifications are distributed using data from WAWF eBusiness Suite, Invoicing, Receipt, 

Acceptance and Property Transfer (iRAPT), EDA, and MyInvoice.

C4.11.2. Authority. As permitted by FAR 4.804-5(a) and DFARS PGI 204.804-3, 

automated contract closeout allows a system to initiate and execute the closeout action.
Enclosure 1, ADC 1163A

Page 2

C4.11.3. Eligibility Requirements. Contracts to be closed must not be administered by the

Defense Contract Management Agency (DCMA) unless the “Admin By DoDAAC” matches a 

DoDAAC on an exception list. A new Contracting Officer (KO) role was will be created 

within the Automated Contract Closeout module to enable contracts to be placed on hold. 

DFARS PGI 204.804-3 contains the criteria that a contract must meet to be automatically 

closed. Under the Authority identified in C4.11.2, contracts qualify for the automated closeout 

process if the contract meets the following requirements:

C4.11.3.1. Identified in the Procurement Data Standards (PDS) extensible 

markup language (XML) data as firm-fixed priced,

C4.11.3.2. Does not exceed a total contract value of $500,000 (inclusive of exercised

options),

C4.11.3.3. Does not have a hold on the contract placed by the Contracting Officer, 

and

C4.11.3.4. Does not contain any of the following clauses requiring administrative 

action at closeout:

• FAR 52.211-11 Liquidated Damages—Supplies, Services, or Research 

and

Development.

• FAR 52.216-7 Allowable Cost and Payment.

• FAR 52.227-9 Refund of Royalties.

• FAR 52.227-11 Patent Rights—Ownership by the Contractor.

• FAR 52.227-13 Patent Rights—Ownership by the Government.

• FAR 52.232-16 Progress Payments.

• FAR 52.232-29 Terms for Financing of Purchases of Commercial Items.

• FAR 52.232-30 Installment Payments for Commercial Items.

• FAR 52.232-32 Performance-Based Payments.

• FAR 52.245-1 Government Property.

• FAR 52.248-1 Value Engineering.

C4.11.3.5. Use of PDS data from EDA enables review of applicable clauses, 

which is then coupled with evidence of submission from iRAPT and payment of the final 

invoice in MyInvoice

C4.11.3.6. The following conditions are necessary for automated closeout using this

capability:

• Contract must utilize WAWF for deliveries and payments.

• Contract must be available in EDA as PDS.

• Entitlement systems must feed WAWF invoice status.

Intervening text not shown
Enclosure 1, ADC 1163A

Page 3

C4.11.6.2. Simultaneous with establishment of a new parameterized window, 

WAWF iRAPT will generate a DLMS 567C Cancellation of a previously submitted automated 

contract closeout action. This will be identified by 1/BC07/020 Code 2 (Change (Update)), 

1/CS05/050 Code G (Final contract completion statement for contract closeouts) and 

1/LQ02/110 Code K (Cancellation). This will notify EDA that additional documents were 

received and a new 60-day parameterized window is started. This ensures that the contract is not 

open in one system and closed in another system. 

Intervening text not shown

C4.11.7.2. The 1/N1/030 segment precedes the 1/C/050 loop, and with two iterations, 

carries the Code FR (from) and the Code TO (to); this will be WAWF-iRAPT in the FR and the 

AAI in the TO. 

Intervening text not shown

C4.11.7.3. Use the appropriate qualifier in N101 and N103 to identify WAWFiRAPT, EDA, and the AAI. 

C4.11.7.3.1. To identify WAWF-iRAPT, use N101/RGA and N103/93.

C4.11.7.3.2. To identify the AAI, use N101/CW and N103/PI. 

C4.11.7.3.3. To identify EDA, use N101/EM and N103/94

Intervening text not shown

C4.12. CANCELLATION OF A UNILATERAL PURCHASE ORDER NOT ACCEPTED 

BY THE CONTRACTOR

C4.12.1. As required by FAR 13.302-4(b), contracting officers will notify the 

contractor in writing that the purchase order has been cancelled and request the 

contractor’s written acceptance of the cancellation. DFARS PGI 213.307-3 requires that

unilateral purchase orders be cancelled with a contract modification.

C4.12.1. As permitted by FAR 13.004 the Government may unilaterally issue an award 

in response to a vendors quote. Such awards are not binding contracts until acceptance by the 

vendor either in writing or through performance. As such, there are sets of contracts that 

remain open in Defense business systems even though no deliveries or work has or will ever 

occur. C4.12.2 provides the mechanism for identifying and closing these unfulfilled awards in 

order to free obligated funds and stop perpetuating these extraneous contract files. Contracts 

identified as unfulfilled, should be administratively closed in accordance with 

FAR42.302(a)(63). 

C4.12.2. A cancelation of a unilateral purchase order not accepted by the contractor will 

be submitted using Code H in 1/CS05/050.

C4.12.3. This procedure applies to both automated closeouts systemically initiated by 

iRAPT, as well as all other non-automated closeouts submitted by other systems.
Enclosure 1, ADC 1163A

Page 4

Appendix 1, Contract Closeout Status Report Codes

AP1. APPENDIX 1

CONTRACT CLOSEOUT STATUS REPORT CODES

NUMBER OF CHARACTERS: One

TYPE OF CODE: Alpha 

EXPLANATION: Used in the DLMS 567C Contract Completion Statement/ 

Unclosed Contract Status/Contract Close-out to identify the 

type and purpose of the transaction.

DLMS SEGMENT/QUALIFIER: CS Segment, CS05 Data Element ID 127 

CODE Title

A Final contract completion statement for small purchases

B Interim (physical) completion statement for large purchases

C Final contract completion statement for large purchases

D Extension of contract closing date (by CAO)

E Extension of contract closing date (by PCO)

F Financial contract completion statement (by DFAS)

G Final contract completion statement for automated contract closeouts

H Cancelation of a unilateral purchase order not accepted by the contractor
Enclosure 2, ADC 1163A

Page 1

Enclosure 2

DLMS Transaction

Revise the DLMS 567C X12 EDI Implementation Convention as shown:

(Deletions are identified by single strikethrough text)

# Location DLMS IC 567C 

Contract Completion Statement/Unclosed Contract

Status/Contract Close-out

Revision

Reason

1. DLMS 

Introductory 

Note

Add ADC 1163A to DLMS Introductory notes: 

- Approved Administrative Defense Logistics Enterprise 

Standards (DLES) Change (ADC) 1163A, DLM 4000.25, Volume 

7, Chapter 4 Contract Completion Status Reporting (Contract 

Administration)

To identify DLMS 

changes included in 

the implementation 

convention.

2. 1/CS05/050 Remove Code H from DLMS Note 1:

DLMS Note:

1. Must use one of the following codes to identify the type of

contract closeout status report:

A - Final contract completion statement for small purchases

B - Interim (physical) completion statement for large purchases

C - Final contract completion statement for large purchases

D - Extension of contract closing date (by CAO)

E - Extension of contract closing date (by PCO).

F - Financial contract completion statement (by DFAS)

G - Final contract completion statement for automated contract 

closeouts (by WAWF-iRAPT systemically)

H - Cancelation of a unilateral purchase order not accepted by the 

contractor

2. When N101 is code PR and N106 is code FR, cite code F in this 

data element.

3. For a list of available codes, see DLM 4000.25 Volume 7, 

Appendix 1 – Contract Closeout Status Report Codes

Removes option for 

using code H in a 

contract closeout 

transaction. DAAS 

query on 2/9/2021 

confirmed not recent 

usage of Code H (past 

6 months)