Overview
FAR Subpart 4.2 establishes the mandatory procedures and timelines for distributing executed contracts and modifications to all relevant stakeholders. Its primary purpose is to ensure that contractors, payment offices, and administrative agencies have the documentation necessary to initiate performance, manage oversight, and facilitate timely payments.
Key Rules
- The 10-Day Rule: Contracting officers must distribute copies of contracts or modifications within 10 working days after execution by all parties.
- Mandatory Recipients: At a minimum, signed copies must be sent simultaneously to the contractor and the paying office.
- Funding and Audit Requirements: Copies must be provided to every accounting and finance office whose funds are cited, as well as the appropriate field audit office if audit services are required.
- Taxpayer Identification Information (TIN): The TIN and type of organization must be provided to the payment office, typically by attaching the relevant solicitation provision (FAR 52.204-3 or 52.212-3) as the final page of the contract copy.
- TIN Updates: If a contractor provides their TIN after the award, the contracting officer has a strict 7-day window to forward that information to the payment office.
- Minimalism in Distribution: Agencies are directed to limit additional distribution requirements to the absolute minimum necessary for essential functions.
Responsibilities
- Contracting Officers (COs):
- Executing and distributing contract copies within the 10-day window.
- Identifying and notifying the "cognizant administrative contracting officer" for Cost Accounting Standards (CAS) matters.
- Maintaining and updating the contract distribution list for offices receiving modifications.
- Ensuring TIN information is correctly annotated or attached for the payment office.
- Ordering Officers (FSS and IDIQ): Responsible for providing TIN and organization type to the payment office when placing orders under Federal Supply Schedules or Indefinite-Delivery Contracts.
- Agencies: Required to reach agreements on distribution protocols when contract administration is performed by an agency different from the purchasing office.
Practical Implications
- Payment Bottlenecks: This subpart is critical for the "Procure-to-Pay" (P2P) cycle. If a CO fails to distribute the contract to the paying office within the 10-day window, the contractor’s initial invoices will likely be rejected because the payment office has no record of the obligation in their financial systems.
- Administrative Hand-offs: For complex contracts assigned to DCMA (Defense Contract Management Agency) or other CAOs, the distribution list serves as the "source of truth" for who must be notified of changes, preventing gaps in oversight or manufacturing support.
- Compliance for CAS: For large-scale contracts, the specific requirement to mark copies "For Cost Accounting Standards Administration Only" ensures that specialized oversight is triggered, protecting the government's interest in cost-reimbursement scenarios.
- Digital Systems: In modern practice, much of this "distribution" is handled via automated uploads to systems like the Electronic Data Access (EDA) folder, but the FAR timelines remain the legal standard for compliance.