Responsibilities
The CACO is responsible for corporate-wide contract administration, including indirect cost rates, expense allocations, and CAS compliance, while coordinating closely with audit agencies and ACOs.
Overview
FAR 42.603 outlines the specific responsibilities of the Corporate Administrative Contracting Officer (CACO) in administering contracts on a corporate-wide basis. The CACO is tasked with key functions such as determining final indirect cost rates for cost-reimbursement contracts, establishing advance agreements or recommendations on corporate/home office expense allocations, and administering Cost Accounting Standards (CAS) at the corporate level. The regulation also emphasizes the importance of collaboration with contract audit agencies, requiring the CACO to fully utilize their financial and advisory services, keep cognizant Administrative Contracting Officers (ACOs) and auditors informed of significant matters, and seek their advice and participation as needed.
Key Rules
- CACO Functions
- The CACO is responsible for final indirect cost rate determinations, expense allocation agreements, and CAS administration at the corporate level.
- Collaboration with Audit Agencies
- The CACO must use audit agency services for advice on corporate policies and review of audit reports.
- Communication and Coordination
- The CACO must keep ACOs and auditors informed and involve them in important decisions.
Responsibilities
- Contracting Officers: Ensure CACO functions are properly delegated and monitored.
- Contractors: Cooperate with the CACO and provide necessary information for cost rate determinations and CAS compliance.
- Agencies: Oversee CACO activities and ensure effective use of audit agency resources.
Practical Implications
- This section ensures consistent and compliant administration of contracts at the corporate level, especially for large contractors with multiple contracts. It clarifies the CACO's authority and the need for coordination with audit and contracting personnel, reducing the risk of inconsistent cost treatment and noncompliance with CAS.