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  • Question

    Is there a provision to close the Base Year by a Release of Claims?


    Answer

    There is no release of claims required for FFP contracts.  In FAR 4.804-5(a)(13)  there is guidance that requires us to get from the contractor a closing statement.  However, the only language that mentions "release of claims" as part of the closeout process is in FAR 52.216-7 Allowable Cost and Payment, and that only pertains to cost contracts.  The only FP clause that mentions release of claims is FAR 52.232-5, Fixed Price Construction. The FAR is silent for all other types of fixed price contracts.


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