42.601
General
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.