I never stated FAR 4.804 gives the Gov’t the right to unilaterally closeout contracts. FAR 4.804 does state the required closeout time period for each contract type. Contractors have 120 days after rates are settled on cost type contracts to submit a Final. If they do not meet this timeframe, then the Gov’t can use its right to unilaterally close out the contract.
“Once final annual indirect cost rates are settled for all years of a physically complete contract, the contractor must submit a completion invoice or voucher reflecting the settled amounts and rates within 120 days, unless an extension has been approved in writing by the contracting officer. To determine whether a period longer than 120 days is appropriate, the contracting officer should consider whether there are extenuating circumstances as listed in FAR 42.705 (b) (1) through (5). If the contractor fails to submit a completion invoice or voucher within the specified time period, the contracting officer may:
- Determine the amounts due to the contractor under the contract.
- Record this determination in a unilateral modification to the contract.
FAR 42.705 explicitly states the right of the contracting officer to unilaterally determine the final contract payment amount when the contractor does not submit the final invoice or voucher within the time specified in the contract. The contracting officer determination must be issued as a final decision in accordance with FAR 33.211.