Overview
FAR 42.602 outlines the criteria and procedures for assigning a Corporate Administrative Contracting Officer (CACO) to oversee contract administration for contractors with multiple locations or complex corporate structures. It focuses on ensuring administrative efficiency by centralizing oversight when a contractor’s corporate policies significantly impact government-oriented business units.
Key Rules
- Assignment Thresholds: A CACO may be assigned if a contractor has at least two locations with resident Administrative Contracting Officers (ACOs) or if the agency head determines a specific need.
- Resident ACO Definition: For the purposes of CACO assignment, a nonresident ACO is considered "resident" if at least 75% of their effort is devoted to a single contractor.
- Location Determination: The CACO’s physical location is selected based on the proximity to corporate records, corporate offices, major plants, and the cognizant government auditor, as well as overall cost-effectiveness.
- Decision Criteria: The decision to initiate or discontinue a CACO depends on the volume of government sales, the degree of corporate control over lower-tier operating elements, and the impact of corporate policies on those elements.
- Inter-agency Coordination: If multiple agencies have cognizance over different locations, they must agree on which agency will lead the CACO assignment, usually based on which agency has the highest dollar balance of affected contracts.
Practical Implications
- Centralized Oversight: This section ensures that large contractors with diverse business units receive consistent administrative treatment regarding corporate-wide issues like overhead, insurance, and pension costs.
- Administrative Efficiency: By designating a lead agency based on contract dollar volume, the government avoids duplicative administrative efforts and provides the contractor with a single primary point of contact for corporate-level liaison.