Section 5 - Contract Completion

7.21. Final Contract Completion.

7.21.1. FAR Clause 52.246-12, Inspection of Construction, allows the inspection of already completed work prior to accepting an entire facility. The contractor should notify the contracting officer that the project is nearing completion. At this time, a pre-final inspection is held. It is typical for the contracting officer, QA personnel, contractor personnel (to include subcontractors), requirements personnel, operations and maintenance personnel, and representatives throughout the installation (fire, safety, security, etc) to attend the pre-final inspection.

7.21.2. As part of the "walk thru" a punch list is developed identifying items that do not conform to the contract requirements and require correction, prior to acceptance. The items appearing on the punch list are usually minor in nature.

7.21.3. Beneficial Occupancy. FAR 52.236-11, Use and Possession Prior to Completion, allows for the occupation of a building prior to final acceptance. The Contracting Officer must notify the contractor, in writing, when the occupancy occurs. If it is decided to occupy the building all risk falls on the AF, with the exception of latent defects, or fraud. If the Air Force occupies the facility they must ensure there is no alteration, repair or change in any way to the facility, or any equipment therein. Changes of this nature could alter the Government's rights under the contract clauses for warranty and inspection.

7.21.4. Transfer of Construction. The AF has no formal guidance on the transfer of a completed project, however, the transfer must be in writing and should provide as a minimum:

7.21.4.1. All operating and maintenance manuals, as well as wiring diagrams, piping layouts, valve charts, valve tags, color codes for wiring and piping, and a spare parts catalog

7.21.4.2. List of equipment covered by warranty under the terms and conditions of the contract

7.21.4.3. Copies of all warranty documents

7.21.4.4. Copies of test results for mechanical and electrical systems and/or equipment

7.21.4.5. All specialized keys (tagged), handles and tools

7.21.4.6. For real property transfers use the DD Form 1354, Transfer and Acceptance of Real Military Property

7.21.5. Performance Evaluations. Technical representatives and/or contracting personnel normally prepare the performance evaluation. Contractor evaluations will be completed in accordance with the DoD Contractor Performance Assessment Reporting System Policy Guide. However, FAR 36.201 requires that all performance evaluations are to be reviewed by an official who is knowledgeable of the contractor's performance on the project and should be one organizational level above the evaluator. A copy of the evaluation report is provided to the central database Construction Contract Appraisal Support System (CCASS). The reports can be submitted and reviewed at http://cpars.navy.mil/ccassmain.htm. Architect and Engineering firms should be evaluated by having the CCASS/ACASS Focal Point request a reactivation of the original design contact. The local CCASS/ACASS focal Point can then provide additional instructions on re-evaluating the A&E Firm.

7.21.6. FAR 36.604 authorizes the evaluation of the Architect-Engineer firm responsible for the design after construction has been completed.

7.22. Contract Closeout. Construction contract files are closed in accordance with FAR 4.804 and DFARS 204.804. If construction contracts include environmental issues, such as, the removal of hazardous soils, materials, waste, asbestos, coordinate with the organizational Environmental Division, for additional records retention requirements. The Pre-Final Payment Checklist template in IG5336.90 can be used for documenting the pre-final payment.