ADC 1163 

Approved Defense Logistics Management Standards (DLMS) Change 

(ADC) 1163, Automated Contract Closeout using the DLMS 567C and 

Update Non-Automated Contract Closeout Procedures using the 

DLMS 567C

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION: 

a. Submitting Service/Agency: Defense Procurement and Acquisition Policy (DPAP)

Program Development and Implementation (PDI)

b. Technical POC: DPAP PDI, (703) 697-4440

c. Functional POC: DPAP PDI, (703) 697-4384

2. FUNCTIONAL AREA:

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

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

3. REFERENCES:

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

contract files”

b. FAR 4.804 “Closeout of Contract Files”

c. ECP 0850 Software Requirements Review, Version 5.7.2, Automated Contract Closeout

d. ECP 0850 Critical Design Review, Version 5.7.2, Automated Contract Closeout

e. DLM 4000.25, Volume 7, Contract Closeout Procedures

f. DLMS Implementation Convention (IC) 567C, Contract Completion Statement/ Unclosed 

Contract Status/Contract Close-out Standard

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

Administering the Contract. 

4. APPROVED CHANGE(S): Significant updates subsequent to staffing are highlighted in green.

a. Brief Overview of Change: This change is provided to: 

(1) Revise the DLMS 567C IC (Reference 3.f.) for automated contract closeout 

procedures to support automated closeout requirements (References 3.a. and 3.b.), and support 

DFARS 204.804 requirements for routing to Electronic Document Access (EDA). Automated 

contract closeout allows a system to “automatically” initiate and execute the closeout action. This is

Attachment, ADC 1163

Page 1
distinguished from non-automated contract closeout procedure that use DLMS transactions but are 

initiated with human intervention.

(2) Revise the DLMS 567C IC for additional non-automated contract closeout 

procedures identified during development of this approved change.

(3) Document automated contract closeout procedures in the DLM 4000.25, Volume 

7, Contract Administration.

(4) Document the additional non-automated contract closeout procedures identified 

herein in the DLM 4000.25, Volume 7, Contract Administration.

b. Background:

(1) The DLMS 567C historically is used between administrative contracting offices 

and procurement offices. Contract completion is the basis for records retention, and the information 

contained in the DLMS 567C needs to be shared across a broader set of stakeholders. Changes to the 

IC are needed to reflect that broader sharing of information and to support the automated generation 

of contract completion notices in DFARS 204.804. The Wide Area Workflow (WAWF) eBusiness 

Suite, Invoicing, Receipt, Acceptance, and Property Transfer (iRAPT) engineering change proposal 

(ECP) 0850 defined the problem as: “The existing Contract Closeout process for most users is a 

manual process, even in cases where no decisions are required.” In August 2014, a Defense 

Procurement and Acquisition Policy (DPAP) survey of contract writing systems revealed few contract 

writing systems collect or share closeout notifications. Currently, only the Defense Contract 

Management Agency (DCMA)—through their Mechanization of Contract Administration Services 

system (MOCAS)—and the Army have implemented an automated closeout capability. The existing 

manual closeout process consumes resources unnecessarily. The current manual process impacts both 

auditability and the timely recovery of excess funds. Additionally, contract closeout starts the clock 

for records retention, so without a timely closeout notification, systems keep records longer than 

necessary. Summary: Automated contract closeout could simplify the process where appropriate.

(2) PGI 204.804-1 (see Reference 3.g.) states that the office closing out the contract 

can use either locally developed forms or a statement of completion instead of the DD Form 1594, 

Contract Completion Statement, and use the administration office closeout date. Whichever method 

is used, the form must be retained in the official contract file. Copies should be sent to EDA and 

financial systems using the DLMS transaction based upon the American National Standards Institute 

(ANSI) X12 Electronic Data Interchange (EDI) 567 transaction set.

(3) While developing this change, several additional functional requirements were 

identified for non-automated contract closeout procedures. These affect addressing, updates to 

previously closed contracts, and routing of 567C transactions final closeout for a cancelation of a 

unilateral purchase order not accepted by the contractor. These are specifically noted in the following 

section.

c. Approved Change in Detail:

(1) As permitted by FAR 4.804-5(a) (Reference 3.a.) and DFARS 204.804-3

(Reference 3.b.), automated contract closeout allows a system to automatically initiate and execute the 

contract closeout action.

Attachment, ADC 1163

Page 2
(a) The automated contract closeout process identified in this DLMS change

will apply where notifications are distributed using data from iRAPT, EDA, and MyInvoice. 

(b) Contracts to be closed must NOT be DCMA Administered unless the 

“Admin By DoDAAC” matches a DoDAAC on an exception list, as they will use their existing 

capability described above. The exception list is in the iRAPT database table; changes to the table can 

be done via a database script.

(2) The automated contract closeout functionality will be a systemic process in the 

new Contract Closeout module added to the WAWF eBusiness Suite for any EDA user with an active 

‘Upload/Inactive Contracts’ role.

(3) A new Contracting Officer (KO) role will be created within the module to enable 

contracts to be placed on hold. This will enable the KO the opportunity to stop the automated 

closeout process in the event of litigation, criminal investigation, etc.

(4) Modify the DLMS 567C to uniquely identify the three scenarios associated with 

automated contract closeout: 

(a) Automated Contract Closeout, to be identified in 1/BC07/020 Code CL –

Closed 

(b) Update to a previous automated contract close out action, to be identified in 

1/BC07/020 Code 2 – Change (Update)

(c) Cancellation of a previously submitted automated contract closeout action, 

to be identified in 1/LQ02/110 Code K – Cancellation (See Transaction Status Indictor Code in LQ01)

(5) Contracts qualify for the automated contract closeout process if the contract meets 

the requirements identified in Table 1. If these requirements are met, automated contract closeout can 

be initiated once the contract is eligible, deliveries are complete, and the final invoice is paid.

Table 1. Qualification Requirements for Automated Contract Closeout

• As permitted by FAR 4.804-5(a) and DFARS 204.804-3), automated contract closeout 

allows a system to initiate and execute the closeout action.

• Identified in the Procurement Data Standard (PDS) data as firm-fixed priced.

• Does not exceed a total contract value of $500,000 (inclusive of exercised options).

• Does not have a hold on the contract placed by the Contracting Officer.

• 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 Contractor.

Attachment, ADC 1163

Page 3
Table 1. Qualification Requirements for Automated Contract Closeout

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.

• 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.

• 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.

Source: Qualification requirements as defined in the WAWF iRAPT Engineering Change Proposal 0850 

Automated Contract Closeout

(6) Upon receipt of a payment voucher from MyInvoice against an Invoice marked as 

“Final” for an eligible contract sequence (unique Procurement Instrument Identification Number

(PIIN)/Supplementary Procurement Instrument Identification Number (SPIIN)), the Automated 

Contract Closeout procedures will:

(a) validate that the primary criteria reflected in Table 1 are satisfied, 

(b) ensure there is no exclusion from automatic closeout posted to EDA by the 

Contracting Officer, and 

(c) determine that all materiel deliveries associated with the PIIN/SPIIN are in a 

Processed status.

(7) If all of the aforementioned criteria are positive, then the system will set a 60-day 

(parameterized) date for triggering the execution of the automated contract closeout, at the end of 

which the DLMS 567C is released to EDA via Global Exchange Services (GEX).

(8) If a document is received during the 60-day window, a new 60-day window to 

monitor for transactions that will impact the closeout will be set based on the following:

(a) If a new shipment document is received, the new window will start upon 

that document becoming “Processed” in iRAPT.

(b) If a new invoice is received, the new window will start upon receipt of the 

MyInvoice transaction reflecting “Paid”.

(9) At the end of the last 60 day (parameterized) point, the system will automatically 

generate a DLMS 567C transaction (content based upon a DD Form 1594) and forward that to GEX 

addressed for ultimate receipt at EDA.

Attachment, ADC 1163

Page 4
(10) iRAPT/EDA processing for updated DLMS 567C for a previously automated 

close out contract action 

(a) If iRAPT receives a document after generation of the DLMS 567C, a new 

60-day parameterized window will be established based upon the following criteria:

1. If a new shipment document is received, the new window will start 

upon that document becoming “Processed” in iRAPT.

2. If a new invoice is received, the new window will start upon receipt 

of the MyInvoice transaction reflecting “Paid”.

(b) Simultaneous with establishment of a new parameterized window, 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 has

started. This ensures that the contract is not open in one system and closed in another system. Without 

this additional notification, users looking at EDA will not know that there are missing/open actions for 

a contract.

Staffing Note: This additional change will have a phased implementation and requires an ECP be 

developed by the WAWF/iRAPT PMO.

(c) At the end of the 60 day period, the system will re-evaluate all criteria and if 

positive generate an “update” DLMS 567C. The beginning segment (1/BC07/020) will contain Code 2 

– Change (Update). 

(11) Contract Closeout Transaction Routing Procedures. The iRAPT automated 

contract closeout DLMS 567C transaction will be routed to EDA and the applicable Agency 

Accounting Identifier (AAI).

(a) By default, all DLMS 567C transactions will route to EDA via GEX.

(b) Any accounting systems to receive a copy of the DLMS 567C will be 

identified by using the AAI in the envelope of the DLMS 567C transaction. 

(c) The AAIs will also be identified in the 1/N1/030 as transaction recipients.

Staffing Note: The “From/To” was established as a core DLMS precept that DLMS transactions 

should designate an originator and recipient in the actual body of the DLMS transaction, vice solely in 

the envelope. This is to ensure that this information remains in the transaction history after the 

envelopes are stripped to parse the transactions into AISs. The business rules and processing of the 

financial accounting piece of the automated contract closeout will be addressed in a future DLMS 

change and associated WAWF ECP. Adding the financial accounting piece will require identifying the 

AAI within the body of the DLMS 567C transaction. The capability to implement the AAI addressing 

in the N1 segment is a phased implementation for iRAPT.

Attachment, ADC 1163

Page 5
(12) Updates to Contract Closeout Procedures for systems other than iRAPT.

(a) Contract closeout actions executed by systems other than iRAPT may also 

transmit updates to a previously closed out contract action, if a new shipment document or invoice is 

received. Code 2 Change (Update) will be cited in the Beginning Segment, 1/BC07/020. 

1. The appropriate action activity will send a DLMS 567C transaction to 

cancel the previously sent contract closeout transaction, citing the 1/LQ02/110 Code K (Cancellation). 

A copy of the 567C will be sent to EDA to update the contract status; this ensures that the action is not 

open in one system and closed in another system. 

2. Upon completion of the new closeout actions based on the additional 

documentation received, the appropriate action activity will generate an ‘update” DLMS 567C. The 

beginning segment (1/BC07/020) will contain Code 2 – Change (Update) and in 1/CS05/050 use the 

appropriate contract closeout status report code used in the initial non-automated closeout transaction.

(b) Per the guidance in Reference 3.g., non-automated contract closeout 

procedures, outside of iRAPT require DAAS/GEX to forward an image (copy) of all 567C contract 

closeout transactions to EDA regardless of the originating system or method of closeout.

(13) Cancelation of a Unilateral Purchase Order not Accepted by the Contractor. 

A DLMS 567C will be sent to EDA. 

(a) Background. 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. Thus, there must be a 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).

(b) Procedure. In 1/CS05/050, Code H – Cancelation of a unilateral purchase 

order not accepted by the contractor, will be added to the available contract closeout status report 

codes identified in Enclosure 3. This provides EDA with the notification to delete any record of the 

cited purchase order. This change applies to automated and non-automated contract closeout 

procedures. 

Staffing Note (for WAWF PMO): This additional change will have a phased implementation and 

requires an ECP be developed by the WAWF/iRAPT PMO.

Staffing Note (for PMOs other than WAWF): Upon coordination with DAAS/GEX, systems are 

authorized to implement this change on a staggered schedule.

(14) 567C Contract Closeout IC Changes. The detailed changes for the 567C 

Contract Closeout IC are in Enclosure 1, the following is a summary of the key 567C changes.

(a) Beginning Segment for Contract Completion Status (1/BC07/020) – Add 

action codes for “CL – Closed” and “2 – Change (Update)”

Attachment, ADC 1163

Page 6
(b) Name Segment (1/N1/030)

1. Add codes to the N101 to identify EDA, AAI, and WAWF. 

2. Add codes to the N103 to identify the type of address code for the 

three new codes being added to N101. 

(c) Contact Segment (1/G6101/040) – Add Code AM for Administrator and 

enter “WAWF” in G6102 to identify WAWF as the responsible official/system that signs the contract 

completion statement.

(d) Contract Summary Segment (1/CS05/050) 

1. Add new Code G to indicate final contract completion statement for 

automated closeout to differentiate from the normal contract closeouts by the contracting office or the 

administrative contracting office.

2. Add new Code H to indicate the cancelation of a unilateral purchase 

order not accepted by the contractor.

d. Revisions to DLM 4000.25 Manuals:

(1) Update the DLMS 567C IC with changes to address the automated contract 

closeout process. (See Enclosure 1.)

(2) Update DLM 4000.25, Volume 7, Contract Administration. (See Enclosure 2.) 

(3) Create a new Appendix for DLM 4000.25, Volume 7 to document the Contract 

Closeout Status Report code list identified in the DLMS 567C, 1/CS05/050. (See Enclosure 3.)

e. Approved Transaction Flow: Contract offices administering contracts will generate 

contract completion notices using the DLMS 567C format to be transmitted in accordance with 

DFARS 204.804 to EDA and financial systems, as well as the traditional routing to procurement 

offices; the associated procedures are currently available in DLM 4000.25 Volume 7, Chapter 4 

Contract Completion Status Reporting. iRAPT will create automated contract closeout notices for 

contracts that meet the criteria in DFARS 204.804, processing and transmitting them as documented in 

this approved change.

Attachment, ADC 1163

Page 7
Figure 1 shows the To Be Architecture for the iRAPT Automated Contract Closeout data flow to GEX 

using the DLMS 567C. 

Figure 1. To Be Architecture for Contract Closeout Data Flow

Legend: PDS – Procurement Data Standard, RR – Receiving Report, EDA – Electronic Document 

Access, GEX – Global Exchange

Future Requirements: The financial accounting piece of the automated closeout will be addressed in 

a future DLMS change. Adding the financial accounting piece will require identifying the AAI within 

the body of the transaction. Future notification Services are shown in Figure 2.

Figure 2. Future Notification Services

Legend: SPS – Standard Procurement System, MOCAS – Mechanization of Contract Administration 

Services, WAWF – Wide Area Workflow, EDA – Electronic Document Access

f. Alternatives: None identified

Attachment, ADC 1163

Page 8
5. REASON FOR CHANGE: To support expanded use of the DLMS 567C per DFARS 204.804.

6. ADVANTAGES AND DISADVANTAGES:

e. Advantages: Enables end-to-end automated process for contract closeout, and an 

authoritative source for contract records retention.

f. Disadvantages: None

7. ASSUMPTIONS USED OR WILL BE USED IN THE CHANGE OR NEW 

DEVELOPMENT: Financial systems will be able to receive the DLMS 567C transaction. EDA will 

be modified to accept the DLMS 567C transaction.

8. ESTIMATED TIME LINE/IMPLEMENTATION TARGET:

a. Joint Implementation. Joint implementation by iRAPT and EDA for the identified 

automated contract closeout changes is scheduled for August 21-23, 2015 based on the WAWF 

Release 5.7.2 Contract Closeout Deployment Date.

b. Phased Implementation. Several changes were identified when this ADC was being 

developed and require a future ECP to be developed by the WAWF/iRAPT PMO:

(1) The requirement for iRAPT to generate a 567C cancellation to EDA for an 

updated DLMS 567C to a previously a submitted automated closeout contract action when additional 

documents are received and a new 60 day parameterized window (paragraph 4.c.(10)) is set. 

(2) The additional addressing requirements identified for the 1/N1/030 to enable 

addressing within the DLMS 567C transaction for automated contract closeout transactions

(paragraph 4.c.(11)(c). 

(3) Cancelation of a unilateral purchase order not accepted by the contractor

(paragraph 4.c.(13).

c. Staggered Implementation. The additional functional requirements identified herein for 

non-automated closeouts (manual or other than iRAPT) will have a staggered implementation and 

requires changes to affected Component systems.

(1) Update to previously non-automated closeout contract action (paragraph 4.c.12).

(2) Update to route all DLMS 567C contract closeout transactions to EDA regardless 

of the originating system or method of closeout (paragraph 4.c.12). 

(3) Cancelation of a unilateral purchase order not accepted by the contractor

(paragraph 4.c.(13).

9. ESTIMATED SAVINGS/COST AVOIDANCE ASSOCIATED WITH IMPLEMENTATION 

OF THIS CHANGE: $15.41M annually based on the number of contracts that would move from a 

manual to an automated closeout process annually, multiplied by the estimated time to manually close 

a contract, multiplied by an average hourly rate for a GS-12 employee.

Attachment, ADC 1163

Page 9
10. IMPACT:

a. Update to DLMS Data Elements: Add data elements “Party to Receive Electronic Memo 

of Invoice”, “Administrator”, and “Contract Closeout Status Report Codes” to the Logistics Data 

Resource Management Systems (LOGDRMS) (see Enclosure 4).

b. Automated Information Systems (AIS): While these DLMS changes are primarily 

limited to WAWF, EDA, and Agency Accounting systems, Component contract writing systems are 

authorized to receive the DLMS 567C. To do so, Components should coordinate with the iRAPT 

program office and the GEX.

c. DLA Transaction Services: It is anticipate that the volume of DLMS 567C traffic via the 

GEX will increase by 300 percent.

d. Non-DLM 4000.25 Series Publications: None identified

11. Proposed DLMS Change (PDC) 1163 Staffing Response/Comment Table:

Originator Response/Comment

1. Air Force Concur without comment

2. Army Concur without comment

3. DLA Concur without comment

4. DLA Transaction Services Concur without comment

5. Marine Corps Concur with comment. 

Comment: 

How is the contracting office notified of the automatic

contract close-out? 

DLMSO Response: 

Components should coordinate with GEX to receive DLMS 

567C. 

Page 10 in the PDC:

c. Automated Information Systems (AIS): While changes in 

this DLMS change are primarily limited to WAWF, EDA, and 

Agency Accounting systems, Component contract writing 

systems are authorized to receive the DLMS 567C. To do so, 

Components should coordinate with the WAWF program 

office and the GEX.

WAWF PMO Response: There has been talk of a map that 

would send the 567s to SPS. It would also process closeout 

notices currently generated by MOCAS on DCMA 

administered contracts. So far there has been no decision on 

this. 

Attachment, ADC 1163

Page 10
Originator Response/Comment

6. Navy Navy concurs with PDC 1163, with the following 

comment/question:

Comment:

This PDC would require a small change to Navy ERP to 

modify the inbound 567C to incorporate the new mappings.

Question: Navy ERP currently receives 567Cs from 

MOCAS. Will the new mappings also apply to the 567Cs that 

MOCAS produces? 

WAWF Team Response: This ECP is for WAWF 567C 

extracts. WAWF will extract a 567C UDF. GEX will 

translate the UDF into a 567C (4010) X12 and route it based 

on the WAWF extract. 

DLMSO Response: MOCAS should implement the Contract 

Close-out procedures identified in paragraph 4.c.(12) . The 

procedures are authorized for staggered implementation.

7. USTRANSCOM Abstain

Attachment, ADC 1163

Page 11
Enclosure 1 - Update for the 567C IC Table format Changes

All Federal Notes in DLMS 567C will transition to DLMS Notes.

Item 

#

Location 567C Contract Completion Statement/ Unclosed Contract 

Status/Contract Close-out Standard – DLMS IC Revision

Reason

1. DLMS

Introductory 

Note

Update DLMS Notes 1 and 2:

1. Contract Administration Offices (CAOs) use this transaction 

set to report to Purchasing Offices (POs), EDA, and financial 

systems, both closed and unclosed contract file status. POs use 

this transaction set to request CAOs delay contract file closing. 

POs use this transaction to report closed status to EDA and 

financial systems where the POs retain contract administration. 

Contract file closings are dependent upon contract face values 

and the attendant administrative costs associated with such 

contract file closings.

2. Use a single occurrence of this transaction set to transmit a 

final CAO contract completion statement for small purchases 

(usually without payment data), or an interim CAO contract 

completion statement for large purchases (with or without 

payment data), or a final CAO contract completion statement 

for large purchases (must include payment data) to the PO, 

EDA, and financial systems, or a CAO extension of contract 

closing to the PO, or a PO request to the CAO for contract 

closing extension for specified periods of time, or an automated 

contract closeout systemically generated, such as by Wide Area 

Workflow. Each 567C transaction set may contain only one (1) 

of the five reports stated above, to include cancellations thereof. 

Multiple contract reports are not permitted.

Updates language in 

the introductory 

notes to 

accommodate the 

requirements for the 

automated contract 

closeout transaction

2. DLMS 

Introductory 

Notes

Add ADC 1163 to DLMS Introductory note 3:

- ADC 1163, Automated Contract Closeout using the DLMS 

567C and Update Non-Automated Contract Closeout Procedures 

using the DLMS 567C (Supply/Contract Administration 

/Finance)

To identify

DLMS changes

included in the

DLMS IC.

Enclosure 1, ADC 1163

Page 1
Item 

#

Location 567C Contract Completion Statement/ Unclosed Contract 

Status/Contract Close-out Standard – DLMS IC Revision

Reason

3. 1/BC07/020 Mark as used and add the following codes and DLMS notes:

CL Closed

DLMS Notes:

1. Use to identify a contract closeout action for a contract that

qualifies for a system initiated automated contract closeout.

2. For an automated contract closeout, use of CL Closed, 

acknowledges compliance with the automated contract closeout 

transactions statement of authority and eligibility for initiation of 

the automated contract closeout cited in DLM 4000.25, Volume 7, 

Chapter 4, paragraphs C4.11.2 and C4.11.4 

2 Change (Update)

DLMS Note: 

1. Use to identify an update to the initial automated contract 

closeout action. Use with 1/ LQ02/110 Code K for Cancellation.

2. Authorized for use by both system initiated automated 

closeouts (e.g., iRAPT) and non-automated contract closeout 

action.

Adds two codes to 

identify the 

transaction is used 

for automated 

contract closeout and 

note that 2 Change 

(Update) may be 

used for nonautomated contract 

closeout actions

4. 1/N1/030 Add an additional DLMS note

4. DAAS/GEX will forward an image (copy) of all 567C contract 

closeout transactions to EDA regardless of the originating system 

or method of closeout.

A copy of all 

contract closeout 

transaction is sent to 

EDA.

5. 1/N101/030 Add the following new codes and DLMS notes

EM Party to Receive Electronic Memo of InvoiceDLMS Note: Use when 1/CS05/050 cites code G to identify 

Electronic Document Access (EDA) as the transaction set

recipient. 

CW Accounting Station

DLMS Note: Use when 1/CS05/050 cites code G to identify the 

Agency Accounting Identifier (AAI) to receive the transaction set. 

Code set available at https://beis.csd.disa.mil/beisxml/sfiscombo.xml

RGA Responsible Government Agency

DLMS Note: Use when 1/CS05/050 cites code G (Automated

Contract Closeout) to identify WAWF-iRAPT as the sender of the 

transaction set. Enter “WAWF” in N101.

Follows the core 

DLMS precept that 

DLMS transactions 

should designate 

originator and 

recipient addresses.

Enclosure 1, ADC 1163

Page 2
Item 

#

Location 567C Contract Completion Statement/ Unclosed Contract 

Status/Contract Close-out Standard – DLMS IC Revision

Reason

6. 1/N103/030 Add the following new codes and DLMS notes

PI Payor Identification

DLMS Note: Use with N101 Code CW to identify the Agency 

Accounting Identifier (AAI) in WAWF-iRAPT Automated 

Contract Closeout transactions.

93 Code assigned by the organization originating the transaction 

set 

DLMS Note: Use with N101 Code RGA to identify WAWF as the 

sender of the automated contract closeout transaction.

94 Code assigned by the organization that is the ultimate

destination of the transaction set

DLMS Note: Use with N101 Code EM to identify Electronic 

Document Access as the recipient of all Contract Closeout 

transactions. 

Added for use with 

the new codes being 

added in 

1/N101/030.

7. 1/G6101/040 Add the following new code and DLMS note: 

AM Administrator 

DLMS Note: When BC07 is code CL or 2, use to indicate a 

WAWF automated contract closeout transaction. Enter 

“WAWF” in G6102.

Adds specific code 

to identify the 

transaction as an 

automated contract 

closeout.

8. 1/CS05/050 Update existing Federal note to DLMS note, add the following 

codes and note to the existing list, renumber DLMS Notes as 

necessary. 

DLMS Note: For a list of available codes, see DLM 4000.25 

Volume 7, Appendix 1 – Contract Closeout Status Report Codes 

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

Identifies the type of 

contract closeout 

status report

Enclosure 1, ADC 1163

Page 3
Enclosure 2

DLM 4000.25 Volume 7, Chapter 4 Contract Completion Status Reporting Updates

The following paragraphs are updated as indicated. Insertions are identified by red, bold, italics. 

Deletions are identified by double strikethrough.

C4.1 GENERAL

C4.1.1. Purpose. This chapter prescribes standard procedures for reporting:

C4.1.1.1. The status of unclosed contracts subsequent to physical completion,

C4.1.1.2. Major events leading to the closing of the contract files by the Contract 

Administration Office (CAO), the office administering the contract for closeout including where 

administration is retained by the Purchasing Office (PO),

C4.1.1.3. The extension of the contract closeout period by the CAO, and

C4.1.1.4. The extension of the contract closeout period by the Purchasing 

Office (PO), 

C4.1.1.5. The execution of an automated contract closeout,

C4.1.1.6. The update of a previously submitted contract closeout, and

C4.1.1.7. The final closeout of a cancelled contract in EDA.

[Intervening paragraphs not shown]

C4.1.4. Contract Completion Statements. Each CAO-issued DLMS 567C may include only one 

contract completion statement, unclosed contract status, or cancellation, automated contract closeout, 

update to an initial automated contract closeout, cancellation of a closeout action, or final closeout 

of a cancelled contract in EDA. The PO-issued DLMS 567C may include only one contract closeout 

extension. Multiple contract completion statements within a single DLMS 567C transmission are not 

permitted at this time.

[Intervening paragraphs not shown]

C4.5. CONTRACT COMPLETION STATEMENT

C4.5.1. Purpose. The contract completion statement is the DFARS-authorized electronic version 

of the DD Form 1594 (Reference 3.g.), Contract Completion Statement. It is the means by which the 

CAO informs the PO (or designated Automatic Data Processing (ADP) point) of the major events of 

physical completion, final payment, and/or closure of the CAO contract file. For all contracts, a final 

contract completion statement is the basis for the PO to closeout its contract file. For contracts with a 

total value of under $500,000, the closeout process is automated per FAR 4.804-5(a) and DFARS 

204.804-3, see section C4.11. Automated Contract Closeout for additional information.

[Intervening paragraphs not shown]

Enclosure 2, ADC 1163

Page 1
C4.5.5. Unliquidated Amount. The unliquidated amount is money that was obligated on the 

contract but not spent. In all cases, the final contract completion statement must include any 

unliquidated amount that remains on the contract or order after final payment has been made. The 

unliquidated amount is the remainder of the accumulated amounts paid, as netted by all collections, 

subtracted from the amount obligated on the contract by any contract modifications, and adjusted by 

deductions and all variance codes. The unliquidated amount must be conveyed in the AMT data 

segment of the CS loop in the DLMS 576C and will appear only when an unliquidated amount remains 

on the contract. The accountable activity must reclaim this money before the PO closes the contract.

[Intervening paragraphs not shown]

C4.7.6. Exception to Closure. A contract file must not be closed if the contract is in litigation or 

under appeal; or in the case of a termination, all termination actions have not been completed. See 

FAR 4.804-1(c).

[Intervening paragraphs not shown]

C4.10.2. Uses. As discussed in sections C4.4., C4.5., and C4.6, and C4.11., there are six eight

uses of the contract completion status transaction1. Each use is identified by a code in the 1/CS05/050 

data element.

[Intervening paragraphs not shown]

C4.10.2.4. iRAPT. The final contract completion statement for automated contract 

closeouts (Code G).

C4.10.2.5. Multiple Users. Final closeout for a cancelled contract (Code H). 

C4.10.3.1. To/From Code. The 1/N1/030 segment precedes the 1/CS/050 loop, and 

with two iterations, carries the Code FR (from) and the Code TO (to); these will be the appropriate PO 

and CAO that will be common to all records in a given transaction set. DAAS/GEX will forward an 

image (copy) of all 567C contract closeout transactions to EDA regardless of the originating system 

or method of closeout. Refer to ADC 1163. See C4.11.8 for N1 segment addressing for automated 

contract closeout procedures.

[Intervening paragraphs 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 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 204.804-3), automated 

contract closeout allows a system to initiate and execute the closeout action. 

1 Refer to Volume 7, Appendix 1 (ADC 1163)

Enclosure 2, ADC 1163

Page 2

 
C4.11.3. Eligibility Requirements.

2

 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 will be created within the 

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

2 Refer to ADC 1163, Update DLMS 567C Automated Contract Closeout.

Enclosure 2, ADC 1163

Page 3

 
C4.11.4. Initiation of Automated Contract Closeout. If the eligibility requirements are met, 

automated contract closeout can be initiated once deliveries are complete and the final invoice is 

paid. 

C4.11.4.1. A 60-day parameterized window will be established once deliveries are 

complete and the final invoice is paid. 

C4.11.4.2. If a document is received during the 60-day window, a new 60-day window 

will be set based on the following:

C4.11.4.2.1. If a new shipment document is received, the new window will 

start upon that document becoming “processed” in WAWF.

C4.11.4.2.2. If a new invoice is received, the new window will start upon 

receipt of the MyInvoice transaction reflecting “paid.”

C4.11.4.3. At the end of the final 60-day window, the DLMS 567C will be released to 

EDA via the GEX.

C4.11.5. Authority and Eligibility Statement. The automated contract closeout transactions 

statement of authority and eligibility for initiation of the automated contract closeout cited in 

C4.11.2 and C4.11.4 will be included by reference in the automated contract closeout transaction 

when using 1/BC07/020, code CL – Closed.

C4.11.6. Generating Updates to Automated Contract Closeout 

C4.11.6.1. If additional documents are received after the transmission of the 

Automated Contract Closeout to EDA, a new 60-day parameterized window to monitor for 

additional transactions that would impact the closeout will be established based upon the 

following criteria:

C4.11.6.1.1. If a new shipment document is received, the new window will 

start upon that document becoming “processed” in WAWF.

C4.11.6.1.2. If a new invoice is received, the new window will start upon 

receipt of the MyInvoice transaction reflecting “paid.”

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

C4.11.6.3. At the end of the 60-day period, an updated DLMS 567C will be released 

to EDA via the GEX. The beginning segment will contain the Action Code 2 to indicate that the 

transaction is an updated automated contract closeout.

Enclosure 2, ADC 1163

Page 4
C4.11.7. Name/Place Data for Automated Contract Closeout 

C4.11.7.1. To/From code.

3

 The automated contract closeout notices will be 

distributed electronically using the DLMS 567C transaction set to EDA and applicable Agency 

Accounting Identifiers (AAI)

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. 

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

C4.11.7.4. DAAS/GEX will forward an image (copy) of all 567C contract closeout 

transactions to EDA regardless of the originating system or method of closeout. Refer to ADC 1163.

C4.12. Cancelation of a unilateral purchase order not accepted by the contractor 

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.

3 Under the existing design (March 2015), the Automated Contract Closeout transactions will not contain a From and 

To indicating the sending and receiving organizations for the transaction set and will use the DLMS 567C 

transaction header envelope and GEX routing rules. This change will have a phased implementation and requires 

an ECP be developed by the WAWF-iRAPT PMO. Refer to ADC 1163.

Enclosure 2, ADC 1163

Page 5

 
DLM 4000.25, Volume 7, Month XX, 2014

Enclosure 3

DLMS Volume 7, New Appendix AP1

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 Closeout 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 3, ADC 1163

Page 1
Enclosure 4 – LOGDRMS Core

NAME PARTY TO RECEIVE ELECTRONIC MEMO 

OF INVOICE

DEFINITION PARTY TO RECEIVE ELECTRONIC COPY 

OF THE CONTRACT CLOSEOUT

DATA CODE CHARACTERISTICS TYPE: ID MIN: 2 MAX: 3

NAME ADMINISTRATOR

DEFINITION A PERSON OR OFFICE TO WHOM 

COMMUNICATIONS SHOULD BE 

DIRECTED.

DATA CODE CHARACTERISTICS TYPE: ID MIN: 2 MAX: 2

NAME CONTRACT CLOSEOUT STATUS REPORT 

CODES

DEFINITION

USED IN THE DLMS 567C CONTRACT 

COMPLETION STATEMENT/UNCLOSED 

CONTRACT STATUS/CONTRACT 

CLOSEOUT TO IDENTIFY THE TYPE AND 

PURPOSE OF THE TRANSACTION.

DATA CODE CHARACTERISTICS TYPE: ID MIN: 1 MAX: 1

Enclosure 4, ADC 1163

Page 1