What three requirements must a contract meet to qualify for the automated closeout process?

The correct answer is focused on the requirements for a contract to qualify for the automated closeout process. Specifically, option B states that the contract must be a firm-fixed price contract, not exceed $500,000, and must not contain a certain provision.

A firm-fixed price contract is essential in this context because this type of contract provides a set price that does not change, which simplifies the administrative process by eliminating the need for cost audits or adjustments that can arise from cost-reimbursement contracts. Additionally, limiting the value to contracts that do not exceed $500,000 allows for a streamlined and efficient closeout process, as smaller contracts typically involve less complexity and fewer outstanding actions. The stipulation of not containing a certain provision further aids in ensuring that the contract's terms are straightforward, contributing to a more efficient closeout without residuals that could necessitate additional oversight or administrative tasks.

These criteria align with the principles of an automated closeout process designed to facilitate efficiency in governmental and contracting procedures. An automated process is beneficial for handling routine transactions quickly and effectively, thereby reducing the administrative burden on both the contracting agency and the contractor, as long as the contract conditions are simple and clear.