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  • Question

    Can the Government require the Contractor to provide notice of final invoice within a certain timeframe? Is there anything the Government can do in this situation, that would allow for the deobligation of funds from orders whose funds are about to cancel?


    This contractor is unreasonably asking the Government to pay for the submission of a final invoice.  I can’t find a clause that requires your contractor to submit a final involve in a particular period of time.  So, I recommend conducting your due diligence using normal contract administration processes, ultimately issuing a unilateral modification de-obligating the remaining unliquidated obligations, if needed.   

    I’d work this problem in phases, documenting my thinking and actions at each step. 
    I would take these steps regardless of how soon your money will expire.  First, the contracting officer should send the contractor a written request for its final invoice or require in writing an explanation of what work is still outstanding and if any invoices are still expected.  Give the contractor a reasonable time, such as 15 days to respond.  If the contractor does not respond with a reasonable explanation, send them a supplemental agreement (modification to the order) for their signature.  The modification will include a deobligation of funds and include the Contractors Statement of Release.  Again, give the contractor a reasonable and specific amount of time to sign.  If this fails to work, the contracting officer should issue a unilateral modification deobligating the unliquidated obligations.  The contractor always has the right to submit an invoice at a later date.  If the late invoice is valid, the Government will seek current year funding to make the payment. 

    FAR 43.204 Contractor’s Statement of Release
    In consideration of the modification(s) agreed to herein as complete equitable adjustments for the Contractor’s _______ (describe) __________ “proposal(s) for adjustment,” the Contractor hereby releases the Government from any and all liability under this contract for further equitable adjustments attributable to such facts or circumstances giving rise to the “proposal(s) for adjustment” (except for__________ ).

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