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- [Narrator] In its global
warfighter support role,

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DCMA navigates the intricate
world of defense contracting.

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Prior to delivering the
equipment and systems

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warfighters rely on to
fight, survive, and win,

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the agency ensures these
products meet DOD readiness

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and lethality standards.

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In pursuing excellence, DCMA

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developed the business
capabilities framework

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to better capture the
agency's return on investment

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through a more integrated
model to focus on products,

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including acquisition risk reduction

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and transaction support.

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The business model contains
11 capability boards

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within three overarching capabilities,

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primary, integrating, and enabling.

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Contract closeout aligns
with primary capability

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of contract maintenance and
consists of the processes,

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tasks, and activities designed

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to accomplish contract closeout.

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And to close out each contract
in a timely manner is vital,

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because every contract closed

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saves the government time and money.

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Effective close out starts
early within the life cycle

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as contract maintenance ensures
collaborative, repeatable,

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and transparent processes are employed

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from the moment a contract is received.

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The process fine-tunes
DCMA's day-to-day efforts

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to perform administration services

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and to maintain contract databases.

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This information is
then relayed to internal

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and external customers

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through collaboration and communication.

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DFAS, DCAA, buying command,

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and industry counterpart personnel

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are often the beneficiaries

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of these communicative efforts.

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This results in a reduced

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over-aged contract closeout backlog

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and a number of actions and dollar value.

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It also establishes a DCMA
culture of internal controls

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and continual audit readiness.

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DCMA Dallas's recent performance
represents a prime example

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of this system's success.

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In 2017 to 2018, its
ACO closed 70 contracts

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from a local contractor
for a total dollar amount

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of nearly 400 million dollars

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and a total remainder amount
of almost 42 million dollars,

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which was deobligated.

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As if saving 41 million
dollars wasn't enough,

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43 of these contracts would
have reached overage status

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in 2017 and negatively impacted
fire and metrics compliance.

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Contract closeout is
contracting's final step

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in a marathon performance.

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This final evolution ensures contractors

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have delivered everything
required by the contract

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and the government has paid
the contractor in full.

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Excess funds are deobligated.

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Property rights are confirmed.

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Administrative actions are completed.

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Reconciliation requests
are made and fulfilled.

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The successful result of this
process is contract closeout.

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It directly contributes to DCMA's ROI,

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which represents a 4.3 to one return

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on taxpayer investment.

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It also supports the
agency's priority mission.

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DCMA is first and foremost a
product delivery organization.

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A critical aspect of our delivery mission

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is to administer, pay,
and closeout contracts

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in a timely manner.

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Effective contract maintenance
ensures this will happen.

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To learn more about this process,

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visit the initiative's page on DCMA360.