Overview
FAR 42.1105 mandates that Contracting Officers assign a specific criticality designator (A, B, or C) to every contract to establish its priority level for production surveillance and contract administration.
Key Rules
- Mandatory Assignment: Contracting Officers must assign a designator to each contract in the designated administrative office section of the contract document.
- Designator A (Highest Priority): Reserved for "Critical" contracts, including DX-rated orders under the Defense Priorities and Allocations System (DPAS), contracts awarded under "unusual and compelling urgency" (FAR 6.302-2), and major systems.
- Designator B (Medium Priority): Applied to contracts for items essential to maintaining production or repair lines, preventing out-of-stock conditions, or meeting specific user needs for non-stock items.
- Designator C (Standard Priority): The default category for all contracts that do not meet the specific criteria for Designators A or B.
Practical Implications
- The criticality designator dictates the intensity of production surveillance performed by the Contract Administration Office (CAO); higher designators result in more frequent monitoring and reporting.
- Contractors should recognize that Designator A and B assignments signal that the government views schedule adherence as vital to national security or operational readiness, often leading to less flexibility regarding delivery delays.