52.236-19
Organization and Direction of the Work
Contractors on cost-reimbursement construction contracts must provide and maintain an up-to-date organizational chart and ensure qualified, approved personnel are directing the work on-site.
Overview
FAR 52.236-19, Organization and Direction of the Work, establishes requirements for contractors on cost-reimbursement construction contracts to provide detailed information about their organizational structure and personnel responsible for contract performance. The clause ensures that the government has visibility into the contractor’s management and oversight of the work, and that qualified personnel are in place to direct the project. Contractors must submit an organizational chart at contract execution and keep it updated, and the work must be directed by senior personnel unless otherwise approved by the Contracting Officer.
Key Rules
- Submission of Organizational Chart
- Contractors must provide a chart detailing their executive and administrative organization, including personnel and their duties, at the start of the contract and update it as needed.
- Resident Direction of Work
- The contract work must be under the full-time, on-site direction of senior personnel (the contractor, principal partners, or senior officers), unless the Contracting Officer approves another arrangement.
Responsibilities
- Contracting Officers: Review and approve the organizational chart and any requests for alternative personnel to direct the work.
- Contractors: Submit and update the organizational chart; ensure qualified, approved personnel are directing the work on-site.
- Agencies: Oversee compliance with the clause and ensure proper contract administration.
Practical Implications
- This clause ensures accountability and qualified oversight on cost-reimbursement construction projects.
- Contractors must be proactive in communicating organizational changes and obtaining approvals for any deviations in project leadership.
- Failure to comply can result in administrative issues or delays in contract performance.