Subpart 42.6
Corporate Administrative Contracting Officer
FAR Subpart 42.6 centralizes contract administration for multi-division contractors through the Corporate Administrative Contracting Officer, ensuring consistent oversight and coordination at the corporate level.
Overview
FAR Subpart 42.6 establishes the role, assignment, and responsibilities of the Corporate Administrative Contracting Officer (CACO) in federal contracting. The CACO is designated to administer contracts at the corporate level for contractors with multiple divisions or locations, ensuring consistent oversight and coordination across the contractor’s organization. This subpart outlines when a CACO should be assigned, where they are located, and their primary duties, which include negotiating corporate-wide indirect cost rates, resolving corporate-level issues, and serving as the main point of contact between the government and the contractor’s corporate office.
Key Rules
- General (42.601)
- Introduces the concept and necessity of a CACO for contractors with complex, multi-division structures.
- Assignment and Location (42.602)
- Details the process for assigning a CACO and criteria for determining their location, typically at or near the contractor’s headquarters.
- Responsibilities (42.603)
- Specifies the CACO’s duties, including negotiating indirect cost rates, resolving corporate-level issues, and coordinating with other contracting officers.
Responsibilities
- Contracting Officers: Must coordinate with the CACO on corporate-level matters and defer to the CACO for issues affecting multiple divisions.
- Contractors: Required to work with the CACO on corporate-wide matters, provide necessary information, and comply with negotiated agreements.
- Agencies: Ensure proper assignment of CACOs and support their oversight functions.
Practical Implications
- This subpart ensures efficient and consistent contract administration for large, multi-division contractors.
- It helps prevent duplication of effort and conflicting guidance from multiple contracting officers.
- Common pitfalls include lack of coordination between field and corporate offices, and failure to recognize the CACO’s authority.