1. (a) Except as provided in paragraph (b) of this section, a contract is considered to be physically completed when—

   1. (1)

      1. (i) The contractor has completed the required deliveries and the Government has inspected and accepted the supplies;
      2. (ii) The contractor has performed all services and the Government has accepted these services; and
      3. (iii) All option provisions, if any, have expired; or
   2. (2) The Government has given the contractor a notice of complete contract termination.

2. (b) Rental, use, and storage agreements are considered to be physically completed when—

   1. (1) The Government has given the contractor a notice of complete contract termination; or
   2. (2) The contract period has expired.

[48 FR 42113, Sept. 19, 1983, as amended at 72 FR 27383, May 15, 2007; 84 FR 19841, May 6, 2019]