42.601 General
Source: FAR 42.601 on acquisition.gov
Assigning a Corporate Administrative Contracting Officer (CACO) ensures consistent and effective contract administration for contractors with multiple operational locations and corporate-wide policies.
Overview
FAR 42.601 addresses situations where contractors operate from multiple locations, such as divisions, plants, or subsidiaries, and have corporate-wide policies or activities that impact more than one administrative contracting officer (ACO). To ensure effective and consistent contract administration across these locations, the regulation allows for the assignment of a Corporate Administrative Contracting Officer (CACO). The CACO is responsible for interfacing with corporate management and handling selected contract administration functions on a corporate-wide basis, streamlining oversight and communication between the government and large, multi-site contractors.
Key Rules
- Multiple Operational Locations
- When a contractor has several operational sites, corporate-wide policies may affect multiple contracts and ACOs.
- Assignment of CACO
- A CACO may be assigned to coordinate with corporate management and perform contract administration functions that span across the contractor’s entire organization.
Responsibilities
- Contracting Officers: Coordinate with the CACO for matters affecting multiple locations; ensure consistent administration.
- Contractors: Facilitate communication and provide access to corporate-wide policies and procedures to the CACO.
- Agencies: Assign a CACO when necessary to ensure effective oversight and administration.
Practical Implications
- This section exists to prevent inconsistent contract administration and duplicative oversight for large, multi-site contractors.
- It impacts daily contracting by centralizing certain administrative functions, reducing confusion, and improving efficiency.
- Common pitfalls include lack of coordination between ACOs and failure to recognize when a CACO is needed.
Contractors with more than one operational location (e.g., division, plant, or subsidiary) often have corporate-wide policies, procedures, and activities requiring Government review and approval and affecting the work of more than one administrative contracting officer (ACO). In these circumstances, effective and consistent contract administration may require the assignment of a corporate administrative contracting officer (CACO) to deal with corporate management and to perform selected contract administration functions on a corporate-wide basis.