Department of Commerce Low Risk Closeout Initiative
Overview
Buyer
Place of Performance
NAICS
PSC
Set Aside
Original Source
Timeline
Qualification Details
Fit reasons
- NAICS alignment with historical contract wins in similar service areas.
- Scope strongly matches core technical capabilities and delivery model.
Risks
- Past performance thresholds may require one additional teaming partner.
- Potential clarification needed on staffing minimums before bid/no-bid.
Next steps
Validate eligibility requirements, assign capture owner, and schedule partner outreach to confirm teaming strategy before submission planning.
Quick Summary
The Department of Commerce (DoC), Shared Services Procurement Office (SSPO) has issued a Special Notice regarding its Low Risk Closeout Initiative. This initiative aims to efficiently clear a backlog of expired, over-age contracts by implementing streamlined closeout procedures for contracts identified as "low risk." Contractors with outstanding invoices for contracts on the provided list must submit them by April 30, 2026.
Purpose
The SSPO's contract closeout backlog burdens legacy systems and impedes the transition to modernized financial and procurement systems. This initiative seeks to reduce that backlog in a cost-effective manner by identifying and closing out low-risk expired contracts.
Scope of Initiative
SSPO has developed risk-based management principles to classify open, expired contracts as low risk if they meet one or more of the following criteria:
- Expired by FY2020 (9/30/2020), with the five-year obligation period expiring on 9/30/2025.
- Expired by FY2024 (9/30/2024), with no invoice or payment activity in the past 12 months and no known outstanding invoices.
- Expired by FY2025 (9/30/2025), are Fixed Price or Time-and-Materials with fully burdened hourly rates, have an undelivered obligation (UDO) balance of $10,000.00 or less, and no known outstanding invoices.
Key Actions for Contractors
Contractors with contracts identified on the attached list (SSPO_Low Risk Targeted Closeout List.xlsx) are requested to submit any outstanding invoices to the cognizant invoicing office, with a copy to SharedServicesProcurement@doc.gov, no later than April 30, 2026.
Timeline
- Published Date: March 16, 2026
- Outstanding Invoices Due: April 30, 2026
- Streamlined Closeout Procedures Begin: May 1, 2026
Additional Information
Beginning May 1, 2026, SSPO anticipates unilaterally deobligating UDO amounts and closing out contracts meeting the specified criteria. Contractors' rights are protected under 41 U.S.C. chapter 71 (Contract Disputes Act of 1978). Normal contract file retention requirements (FAR 4.805) will apply post-closeout. SSPO was formerly known as Enterprise Services-Acquisition (ES-A).
Relevant Documents
- SSPO_Low Risk Targeted Closeout List.xlsx: An Excel spreadsheet detailing awards, including award numbers, vendor names, dates, and obligated amounts, targeted for this closeout initiative. This document provides historical contract information.
Contact Information
For questions, contact SSPO at SharedServicesProcurement@doc.gov.