Contract Close-Outs and No-Cost Extensions

Purpose

This Standard Operating Procedure (SOP) outlines CAD’s Contract Close-Out and No-Cost Extension process. These instructions list the primary documents and process required by CAD and NACHC’s Finance Department to close, extend, or terminate a vendor contract.

Instructions for the Contract Close-Out Process

1. The project lead will determine if and when a vendor contract is fully executed. Information about whether: 

   1. deliverables have been met so the contract has been fully executed;

   2. deliverables have been met but remaining funds should be released back to NACHC;

   3. the contract needs more time with a no-cost extension; or 

   4. the vendor cannot complete contract deliverables and should be terminated.

2. The CAD Contract Specialist will then complete one of the following forms to close-out the contract:

1. Contract Close-Out Form: this form is completed when the vendor’s final invoice is received, representing the completion of all deliverables and the end of a contract.

2. Contract Release Form: this form is used when deliverables for the contract have been met, but remaining contract funds are not needed. In this case, all remaining funds will be released back to NACHC upon completion of this form. 

3. Termination Letter: this letter is sent to a vendor when the project lead informs the Grants Administration team that a vendor cannot complete the contracts deliverables. This letter ends the contract.

The form selected is shared through Adobe DocuSign for the vendor to complete. The final, signed form, should be sent to the Finance Department as a last step.

No-Cost Extensions (NCEs)

NCEs are processed within Cobblestone by the Contract Specialist.

1. Login to Cobblestone and click on “Add Contract Record” under “Contracts” top left menu.

   1. Select 'No-Cost Extension” under type of record and click continue

   2. Complete all required field and click 'Save & Continue”. Project Lead need to provide new end date and the deliverables remaining to be completed under the new period of performance.

   3. The system will generate the NCE template that can be downloaded.

   4. Download the template, make any necessary changes and re-upload to Cobblestone.

   5. Click “Approve” under “Tasks & Workflows” to submit the NCE request for approval.

   6. The NCE is submitted for approval to: 1/ Project Lead; 2/Department SVP; 3/ Finance staff based on threshold; 4/ Deputy Director, Contracts & Procurement to be sent to the vendor for signature.

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