Overview
FAR Subpart 42.2 outlines the procedures and responsibilities for assigning contract administration to specialized offices. It establishes how a Contracting Officer (CO) delegates specific duties to a Contract Administration Office (CAO)—such as the Defense Contract Management Agency (DCMA)—to ensure contract compliance, oversight, and support throughout the post-award phase.
Key Rules
- Standard vs. Specific Functions: CAOs automatically perform "normal" functions listed in FAR 42.302(a) unless specifically withheld. However, they may only perform "additional" functions listed in 42.302(b) if specifically authorized by the CO.
- Delegation Documentation: To delegate authority, the CO must provide the CAO with the CAO’s designation (entered into the contract), special instructions, a copy of the contract, and any necessary agency-specific regulations.
- Rescinding Authority: A CO can rescind or recall a delegation at any time, but they must coordinate with the Administrative Contracting Officer (ACO) to establish a reasonable transition period. Note that certain functions, such as Cost Accounting Standards (CAS) and indirect cost rate negotiations, generally remain with the cognizant CAO.
- Subcontract Oversight: The prime contractor is primarily responsible for managing subcontracts. Government CAO involvement in subcontracts is restricted to cases where the government would otherwise incur undue cost, the prime contract is threatened, or specific surveillance is authorized.
- Right of Refusal: An agency can decline a request for contract administration services if they lack the resources to perform the tasks, provided they do so in writing.
Responsibilities
- Contracting Officer (PCO): Responsible for initiating the delegation, advising the contractor of any withheld or added functions, and providing the CAO with all necessary documentation and regulatory guidance.
- Contract Administration Office (CAO/ACO): Responsible for performing delegated functions, requesting secondary support from other CAOs when performance is required at distant locations, and ensuring resource availability before accepting additional non-standard functions.
- Head of Contracting Activity (HCA): Must approve delegations involving the authority to issue orders under provisioning procedures or Basic Ordering Agreements (BOAs).
- Defense Contract Management Agency (DCMA): Responsible for maintaining the Federal Directory of Contract Administration Services Components and providing a wide array of support services.
- Prime Contractor: Retains the primary responsibility for managing and supervising its own subcontractors.
Practical Implications
- DCMA Integration: In the real world, this subpart is the mechanism by which the DCMA becomes involved in a contract. If a contractor's facility is in a different geographic region than the buying office, the PCO will use these rules to hand off "boots-on-the-ground" oversight to a local ACO.
- Workload Management: Because agencies can refuse delegation based on "inadequate resources," PCOs must coordinate early with the CAO—especially for complex or high-volume contracts—to ensure the CAO actually has the manpower to support the program.
- Major Systems Surveillance: For high-risk or major system acquisitions, this subpart allows the government to implement "special surveillance." This means the government might place additional inspectors or auditors at a contractor's plant for critical components, even if they wouldn't normally do so for standard commercial items.
- Administrative Separation: This subpart reinforces the "Procuring" vs. "Administrative" split. Contractors should clearly understand which office has the authority to change the contract (PCO) versus which office manages day-to-day oversight and payment approvals (ACO).