(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.

(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.