NOTE: THIS DEVIATION IS INCORPORATED IN FAC 97-15, DATED 27 DEC 99

OFFICE OF THE UNDER SECRETARY OF DEFENSE

3000 DEFENSE PENTAGON

WASHINGTON, DC 2030-3000

August 30, 1999

DP (DAR)

In reply refer to

DAR Tracking Number: 99-O0010

MEMORANDUM FOR DIRECTORS OF DEFENSR AGENCIES

SUBJECT: Class Deviation--Deobligation Authority for the Administrative Contracting Officer

Effective immediately, all Department of Defense (DOD) contracting activities shall deviate from the requirements of Federal Acquisition Regulation (FAR) 4.804-5 and 42.302 when closing out contract files. FAR 4.804-5 and 42.302 do not include deobligation of excess funds as a function normally delegated to the contract administration office.

DoD contracting activities shall use the attached modified FAR language. The modified FAR language revises FAR 4.804-5 and 42.302 to establish deobligation of excess funds as one of the contract administration functions normally delegated to the contract administration office.

This class deviation is effective until the FAR is revised.

Attachment: As stated

cc: DSMC, Ft. Belvoir


4.804-5 - [ ]Procedures for Closing Out Contract Files.

(a) The [contract administration office] the is responsible for initiating (automated or manual) administrative closeout of the contract after receiving evidence of its physical completion. At the outset of this process, [the contract administration office must] [ ][review the] contract funds status [ ] [and notify the contracting office of any excess funds the contract administration office might deobligate]. When complete, the administrative closeout procedures [ ][must] ensure that --

(b) When the actions in paragraph (a) of this subsection have been verified, the contracting officer administering the contract [ ][must] ensure that a contract completion statement, containing the following information, is prepared:

(c) When the statement is completed, the contracting officer [ ][must] ensure that --

42.302 Contract administration functions.

(a) [The contracting officer normally delegates] [t]he following contract administration functions [ ]to a CAO. The contracting officer may retain any of these functions, except those in paragraphs (a) {5), (a) (9), and (a) (11) of this section, unless [the cognizant Federal agency (see 42.001) has designated] the contracting officer [ ]to perform these functions.

* * * *

[(70) Deobligate excess funds after final price determination.]