Overview
This section establishes the mandatory compliance framework and governing authorities that a Contract Administration Office (CAO) must follow when a contract is assigned for administration.
Key Rules
- Primary Authorities: The CAO must perform all functions in accordance with 48 CFR Chapter 1 (the FAR) and the specific terms of the contract.
- Servicing Agency Regulations: In addition to the FAR, the CAO must follow the applicable regulations of its own agency.
- Interagency Agreement Exception: The requirement to follow servicing agency regulations can be modified or superseded by the terms of an interagency agreement (per FAR 42.002).
Practical Implications
- Contractors must recognize that the CAO is bound not only by the FAR but also by the specific procedural nuances of the servicing agency’s regulations.
- This section ensures a clear hierarchy of governance, preventing administrative conflicts by prioritizing the contract terms and the FAR over general agency practices.