12.4 Close Procurements Process

Activities in the Close Procurements process makes sure that the product, service, or result has been provided as agreed upon and is acceptable, and that any other deliverables and requirements have been met.

Contract closure will also include any lessons learned and a final review, organization, and archival of contract-related documentation.

Contract closure will begin when the seller makes final delivery or otherwise meets its obligations, but contract closure will occur if early termination comes about.

The closure will be performed for each contract and is the end of the contract life cycle, and it's executed even if there are outstanding and unresolved claims.

The contract will contain what closeout procedures exist between the buyer and the seller, and the contract management plan will contain the contract closeout requirements of the buyer's organization.

Close Procurements Process Decomposition

Close Procurements Process Decomposition

Close Procurements Process: Inputs

  • Project management plan
    The project management plan includes the procurement management plan, which will include any administrative closure procedures.
  • Procurement documentation
    All procurement documentation relating to the procurement is cataloged, indexed, and archived.

Close Procurements Process: Tools and Techniques

  • Procurement audits
    A procurement audit is a structured review and analysis of the procurement processes from start to finish with the intent to identify what worked well and where improvements need to be made.
    Procurement audits will look at the procurement process as a whole.
  • Negotiated settlements
    To avoid litigation of contract disputes, alternative dispute resolution methods may be used to reach a negotiated settlement equitable to both parties.
  • Records management system
    Records are important documents that must be cataloged and maintained. Contract records include change requests, correspondence, performance reports, inspections, and audits. The project information system is integrated with the organizational records management system.

Close Procurements Process: Outputs

  • Closed procurements
    The methods to formally close the procurement are specified in the contract.
  • Organizational process assets updates
    Lessons learned and the procurement file are added to the organization’s information assets.

Procurement Audit

A procurement audit is a structured review and analysis of the procurement processes from start to finish with the intent to identify what worked well and where improvements need to be made.

Procurement audits will look at the procurement process as a whole, and they will also focus in on specifics such as:

  • Making sure the approved or qualified seller list undergoes regular reviews and updates by the organization;
  • Ensuring that procurement processes were initiated during the early phases of the project;
  • Seeing if the contract statement of work was complete and accurate before it was given to the seller;
  • Verifying that appropriate accounting and organizational controls and procedures were in place and followed;
  • Making sure that contract documentation was maintained, organized, indexed, and filed into the records management system;
  • Seeing that the appropriate approval processes were followed;
  • Reviewing the effectiveness of the seller evaluation methods;
  • Verifying that the product, service, or result paid for was received.

Contract File and Closed Contract

When it's been verified that the seller has met all its obligations (unless early termination procedures are involved), the seller is notified in writing that the deliverables have been accepted and the contract is closed.

It's usual for any final lump-sum payments and a final accounting to accompany this notice to the seller if applicable.

The closed contract notice, closed contract (including approved change orders), and all other contractual documentation, logs, performance reports, and correspondence are organized, indexed, and archived as the contract file.

The organization may also require a post-contract evaluation to be completed that becomes part of its seller rating system.

If the buyer and seller have claims that haven’t been resolved or other disputed items, the parties may resort to arbitration or other alternative dispute resolution mechanism to reach a negotiated settlement so that both can avoid litigation.

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