A Case Study of the Contract Closeout Process at Defense Contract Management Agency Lockheed Martin Missiles and Fire Control Orlando

Abstract

The Department of Defense (DOD) uses contract management to ensure the successful management and execution of contracts throughout their life cycle; however, there are concerns about how appropriated funds are controlled and managed. The DOD uses the contract management process to obligate funds through the award of contracts for the procurement of goods and services. At the end of the contract period, when all services have been performed and products delivered, those contracts must be closed out, and the closeout will de-obligate any excess funds for other immediate agency requirements. The DOD’s contracting deficiencies continue to be exacerbated by the inability to close contracts. Additionally, as the DOD and other federal agencies fail to pay enough attention to completed contracts, it has resulted in a large backlog of physically completed contracts pending closeout, many of which have unliquidated obligations remaining on them. This thesis investigated the contract closeout process at the Defense Contract Management Agency Lockheed Martin Missiles and Fire Control Orlando (DCMA LMMFC-ORL) and determined some of the causes of the backlog of contracts in the contract closeout process. Finally, recommendations were made to improve the contract closeout process by reducing the backlogs of contracts waiting to be closed out; hence, any funding due to DOD can be de-obligated.