Overview
This section prescribes the procedures and limitations for a contracting officer to delegate contract administration and support services to a cognizant Contract Administration Office (CAO). It outlines the documentation required for delegation, the process for requesting additional or secondary support, and the conditions under which a delegation may be rescinded or refused.
Key Rules
- Delegation Requirements: To delegate administration, the contracting officer must provide the CAO with the CAO’s name/address (also entered in the contract), special instructions, a copy of the contract, and any necessary agency-specific regulations.
- Scope of Authority: Contracting officers may delegate functions beyond those listed in FAR 42.302, provided they coordinate with the CAO regarding resource availability and do not require the CAO to perform new or follow-on acquisitions.
- Rescission Limits: A contracting officer can rescind a delegation at any time, with the critical exception of functions related to Cost Accounting Standards (CAS) and the negotiation of forward pricing or indirect cost rates.
- Secondary Delegations: A CAO or contracting office may request supporting administration from a CAO at a specific contractor location, but this is generally restricted for subcontracts unless there is a threat to the prime contract or undue cost to the Government.
- Refusal Rights: An agency may decline a request for administration services if they lack the resources to perform the tasks, provided the declination is in writing.
Practical Implications
- Clearance of Authority: By requiring specific documentation and notification to the contractor, this section ensures all parties know exactly which government official has the authority to perform specific administrative tasks (e.g., approving invoices vs. changing contract scope).
- Resource Management: The requirement for prior coordination before delegating non-standard functions prevents "unfunded mandates" on CAOs like the Defense Contract Management Agency (DCMA), ensuring they have the personnel to fulfill specialized requests.
- Limited Subcontract Oversight: In practice, the government maintains a "hands-off" approach to subcontracts, placing the burden of management on the prime contractor unless extreme risk justifies direct government surveillance.