Contract administration is an important part of contract management, which includes those activities performed after a contract award, to ensure files are properly maintained and that the contractor meets the requirements of the contract.
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Completed contracts
A contract is considered to be fully completed when:
- Firm price purchase orders or contracts where the goods and services to be supplied or provided, are clearly set out and priced, and all of the required deliverable items have been received in accordance with the quality standards stated in the contract.
- The customer has received and accepted the goods and/or services, and has been invoiced and paid for in accordance with the contract price and basis of payment.
- There are no outstanding work deficiencies, changes, payments, or claims, requiring formal release action.
Incomplete contracts
A contract is not considered to be fully completed if there are:
- Outstanding deliverables - A contract cannot be considered complete until all contracted deliverables have been received, accepted and paid for.
- Contracts are subject to audit - These contracts require verification (audit) and possible adjustment of allowable costs and profits before a final contract amendment can be issued. Costs reimbursable contracts require that the contractor provide a mandatory cost submission to the Contracting Officer on completion or annually if a multi-year contract. Any final contract amendment will be in accordance with the results of the audit and the resolution or negotiation by the Contracting Officer of any contentious items in the audit report.
- Contract termination activity is ongoing - These contracts require special procedures which include the issuance of a termination notice as part of the contract close-out. The type of termination or close-out action required will depend on the reason for the termination, e.g. convenience, default or mutual consent.
- Intellectual property issues are present - Contracts which include research and development work for which the Crown retains ownership require Crown ownership of intellectual property, design and data rights, patents, etc., and/or a license to use such intellectual property. This requires that the contractor submit a disclosure of the specific areas of work for such designs, etc., which were first reduced to practice under the contract. These must be declared with Legal Services and the disclosures obtained, where applicable, before the contract is closed off.
It is the contracting officer’s responsibility to ensure that all contractual action is accomplished in order to consider the contract fully completed.
For more information
For more information, please see the PWGSC Supply Manual, Chapter 8: Contract Management.