Overview
This section defines the 71 specific functions typically delegated from a procuring contracting office to a Contract Administration Office (CAO) to ensure effective oversight and management of a contract. It distinguishes between functions that are normally delegated, those that must be specifically authorized, and those that are mandatory for CAO performance.
Key Rules
- Normally Delegated Functions: The contracting officer (CO) typically delegates 71 standard functions to the CAO, including reviewing compensation, monitoring financial condition, and conducting post-award orientations.
- Mandatory CAO Functions: The CO cannot retain authority over forward pricing rate agreements, indirect cost rates, Cost Accounting Standards (CAS) compliance, or accounting system adequacy determinations unless specifically designated by the cognizant Federal agency.
- Specifically Authorized Functions: A CAO may only perform certain actions—such as negotiating supplemental agreements for change orders, adjusting delivery schedules, or preparing contractor performance evaluations—if explicitly authorized by the contracting office.
- Residual Authority: Any administration function not explicitly listed in 42.302(a) or (b), or not specifically delegated, remains the legal responsibility of the procuring contracting office.
- Accounting System Oversight: The CAO is responsible for ensuring the contractor's accounting system remains adequate throughout the life of the contract to protect the validity of government data.
Practical Implications
- Point of Contact: For contractors, this section clarifies whether they should deal with the Procuring Contracting Officer (PCO) or the Administrative Contracting Officer (ACO) for specific issues like progress payments, property management, or novation agreements.
- Compliance and Audits: Because functions like CAS compliance and indirect cost rate negotiations are mandatory delegations, contractors will almost always work with a specialized CAO (like DCMA or DCAA) for high-level financial and systems oversight rather than the individual who signed the contract.