DOT OIG contract closeout and records-maintenance failures
Risk Mechanism
Incomplete contract and closeout records delayed project closeout and weakened control over final payments, retained funds, and completion verification.
Case Summary
A 2015 audit by the U.S. Department of Transportation Office of Inspector General found recurring failures in contract closeout compliance across DOT operating administrations. None of the 23 contract files reviewed in detail contained a contract completion statement, and many lacked evidence that required closeout steps had been completed.
Risk Lesson
This case demonstrates how incomplete contract and closeout records can delay project closeout and weaken control over final payments, retained funds, and completion verification. It highlights warning signs such as missing completion statements, incomplete closeout documentation, and payment or performance records that do not clearly substantiate contract completion.
Reference
U.S. Department of Transportation, Office of Inspector General. (2015). The Department Does Not Fully Ensure Compliance With Contract Closeout Requirements (Report No. ZA-2015-071). Available from: https://www.oig.dot.gov/sites/default/files/DOT%20Contract%20Closeout%20Process%20Final%20Report%5E7-23-15.pdf