Overview
FAR 42.1101 defines production surveillance as a contract administration function used to monitor a contractor's progress and proactively identify factors that might delay contract completion.
Key Rules
- Definition and Purpose: Production surveillance is established as a formal tool to track progress and pinpoint potential causes for performance delays.
- Scope of Review: The government is authorized to review and analyze the contractor’s internal planning, including performance plans, schedules, industrial processes, and management controls.
- Verification: Surveillance requires a comparison between the contractor’s formal plans and their actual real-world performance under those plans.
Practical Implications
- Proactive Oversight: This section allows the government to move beyond mere end-item inspection and instead monitor the underlying production processes to mitigate risk before a delivery failure occurs.
- Audit Readiness: Contractors must maintain accurate and up-to-date production schedules and process documentation, as these serve as the primary evidence for government contract administration offices (such as DCMA) during site visits.