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  • Question

    Is there a difference between programs that have been canceled and programs that have been terminated or closeout ? A lot of articles use terminated and canceled interchangeably. Are there any DoD required documents or processes that need to be followed if a program is canceled or terminated? Are there any reference (Regulations, Laws, DoDI) materials that could define termination, cancellation and closeout?


    Answer

    Although there are no regulatory definitions relating these terms, there are accepted norms for everyday usage of these terms in acquisition.  For example, to say that a program is cancelled means that the government has removed support and funding from the program.  Case in point were the Army Crusader and Comanche programs. These programs were canceled and are now only addressed as a historical perspective.  Termination, however, is a technical term defined in the Federal Acquisition Regulation that refers to ending (terminating) a contract for non-performance of the contractor or convenience of the government.  In many cases the terms cancelled and terminated are used together but they are not synonymous.  For instance, when a program is canceled there is usually a contract that also needs to be terminated.  Finally, closeout is a very general term that takes its meaning from the context of the area being discussed such as a contract closeout.  In the terms of a contract closeout, it refers to completing all the activities required to end the contract normally. 


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