Contract administration functions
FAR 42.302 defines which contract administration functions can be delegated to a CAO/ACO and which must be retained or specifically authorized, ensuring clear roles and compliance in post-award contract management.
Overview
FAR 42.302 outlines the specific contract administration functions that are typically delegated by the contracting officer to a Contract Administration Office (CAO) or Administrative Contracting Officer (ACO). These functions cover a wide range of post-award activities, including cost and rate negotiations, property administration, quality assurance, payment approvals, subcontracting oversight, and compliance monitoring. The regulation also distinguishes between functions that are normally delegated, those that require specific authorization, and those that must remain with the contracting office unless otherwise designated. This section is essential for defining the roles and responsibilities in contract administration and ensuring that all parties understand their obligations for effective contract performance and compliance.
Key Rules
- Delegation of Functions
- The contracting officer may delegate most contract administration functions to a CAO, except for certain functions that must be retained unless specifically authorized.
- List of Delegated Functions
- Functions include reviewing compensation and insurance, negotiating rates, approving payments, property administration, quality assurance, subcontracting plan oversight, and more.
- Functions Requiring Specific Authorization
- Some functions, such as negotiating change orders or adjusting delivery schedules, require explicit authorization from the contracting office before the CAO can perform them.
- Retention of Non-Delegated Functions
- Any contract administration functions not listed or not delegated remain the responsibility of the contracting office.
Responsibilities
- Contracting Officers: Must determine which functions to delegate, retain, or specifically authorize, and ensure proper oversight.
- Contract Administration Offices/ACOs: Carry out delegated functions, maintain compliance, and report as required.
- Contractors: Must comply with administrative requirements, provide necessary documentation, and cooperate with oversight activities.
- Agencies: Oversee delegation, ensure compliance, and provide guidance as needed.
Practical Implications
- This section clarifies the division of labor in contract administration, reducing confusion and overlap.
- Proper delegation and execution of these functions are critical for contract performance, compliance, and risk management.
- Failure to follow delegation rules or fulfill assigned responsibilities can lead to compliance issues, payment delays, or contract disputes.