Overview
FAR Subpart 4.8 prescribes the policies and procedures for establishing, maintaining, and disposing of official government contract files. It ensures that every acquisition is documented with a complete history to support informed decision-making, provide a trail for audits and investigations, and furnish essential facts for potential litigation or congressional inquiries.
Key Rules
- Completeness Standard: Files must contain sufficient documentation to constitute a "complete history of the transaction," supporting every action taken and providing a basis for informed decisions.
- Functional Triad: Official records are generally divided into three categories: the Contracting Office file (acquisition/award), the Contract Administration Office file (performance/oversight), and the Paying Office file (vouchers/payment).
- Protection of Information: Files containing "contractor bid or proposal information" or "source selection information" must be strictly protected from unauthorized disclosure.
- Media Flexibility: Agencies may maintain files in any medium (paper, electronic, microfilm) provided the integrity of the original signatures and data is preserved and protected from alteration.
- Mandatory Retention: Most contract files and related records must be retained for 6 years and 3 months (standardly referred to as 6 years after final payment) in accordance with NARA General Records Schedules.
- Closeout Prohibitions: A contract file cannot be closed if the contract is in litigation, under appeal, or if termination actions are incomplete.
Responsibilities
- Head of the Office: Responsible for establishing the physical or electronic files for all contractual actions within their jurisdiction.
- Contracting Officer (CO):
- Ensures all required documents (J&As, price analyses, determinations, etc.) are included in the file.
- Verifies contractor responsibility and prepares the "Contract Completion Statement."
- Determines the "physical completion" of the contract.
- Contract Administration Office (CAO):
- Initiates the administrative closeout process upon physical completion.
- Reviews fund status and notifies the CO of excess funds available for deobligation.
- Ensures clearances for property, patents, royalties, and subcontracts.
- Paying Office:
- Maintains records of bills, invoices, and vouchers.
- Closes its specific file once the final payment voucher is issued.
- Agency Records Officer: Coordinates with NARA if shorter retention periods are required for specific programs.
Practical Implications
- Audit Readiness: The "if it isn't in the file, it didn't happen" principle applies. Missing Justifications and Approvals (J&As) or lack of evidence for a "fair and reasonable" price determination are common findings in GAO or IG audits that can lead to overturned awards or administrative sanctions.
- Administrative Workload: Contract closeout is often a complex, multi-year process. For cost-reimbursement contracts, the 36-month closeout window depends heavily on the settlement of indirect cost rates, which can be a significant bottleneck for both the government and contractors.
- Funding Management: The CAO’s responsibility to identify excess funds during closeout is critical for "deobligating" money so it can potentially be repurposed before it expires or "cancels" at the Treasury.
- Litigation Support: In the event of a claim or dispute, the chronological list of awarding and successor contracting officers (required by 4.803) becomes vital for determining who had authority at specific points in the contract lifecycle.