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(ii) determine that the services requested are consistent with Depart

ment of Defense mutual security program policies (Questions as to eligibility of foreign governments or international organizations to receive services from DOD contract administration services components will be referred to the Assistant Secretary of Defense

(International Security Affairs)); (iii) assure that the reimbursement arrangements are consistent with

20–506; (iv) determine that the requested services can be provided, and

acknowledge receipt of the request; (v) distribute the procurement documents and related material to the

cognizant contract administration services component, receive statements of costs from performing contract administration services components, bill the foreign governments or international organizations for services rendered, and distribute the remittance when

received. 20–505.3 Performance of Services Outside the United States. When services are performed by Department of Defense contract administration services personnel outside the United States, the levels of technical capability and the administrative procedures, not already prescribed in existing laws or Department of Defense policies shall be in accordance with arrangements suitable and acceptable to the United States country teams or commanders of unified and specified commands, as appropriate.

20-506 Reimbursement. Reimbursement for services shall be required from non-DOD organizations covered by this part at the current standard rate determined by the Assistant Secretary of Defense (Comptroller). Although services will be performed for the Department of National Defence Production (Canada) on a non-reimbursable basis, normal charges shall be required for work performed for all other agencies of the Canadian Government. Services performed for contracts awarded by the Small Business Administration in accordance with 1-705.5 will be on a non-reimbursable basis. Requests for other exceptions to the above reimbursement policy shall be submitted to the ASD (Comptroller) for resolution or approval when it can be shown that such exceptions are in the best interests of the U.S. Government.

–604 Part 6—Contract Administration Services by non-DOD Organizations

20-601 General. When contract administration services are not available from U.S. Department of Defense components, performance of these services may be requested from other organizations of the Federal Government and from foreign governments and international organizations.

20-602 Request for Services. Unless otherwise specified in a formal agreement, Department of Defense requests for services will not specify performance procedures but will accept the contract administration services procedures normal to the performing organization.

20-603 Payment for Services Rendered. Department of Defense components shall pay for services rendered at the rate established by the performing activity for such services, except where formal agreements provide for reciprocal performance without reimbursement. When services are requested from foreign governments, and international organizations, DOD components should check with the Office of the Assistant Secretary of Defense (Comptroller) to determine whether any reciprocal agreements are in effect which would preclude payment for services requested.

20_604 Department of National Defence Production (Canada). Performance without charge of contract administration services by the Department of National Defence Production (Canada) for the U.S. Department of Defense components is provided for in Section VI, Part 5.

Part 7-Assignment of Contract Administration 20–701 Policy. It is the policy of the Department of Defense to make maximum use of the contract administration offices established by the Defense Contract Administration Services and by the Military Departments under the Plant Cognizance Program for the performance of contract administration functions (see 1-406). Except as otherwise prescribed in this Regulation, contracts shall be assigned for performance of all contract administration functions.

20–702 Responsibilities.

20–702.1 Military Departments. Each Military Department shall limit the retention in the purchasing office of contract administration functions, or the assignment of additional functions to contract administration offices, to unusual cases when the benefits are clearly demonstrable. As a minimum, approval at a level above that of the individual contracting officer shall be required.

20–702.2 Purchasing Office. Except where the purchasing office retains the administration of the contract, it shall enter on the contract the name and address of the office designated to administer the contract. Except as provided in 20–703, that office shall be the contract administration office listed in the DoD Directory of Contract Administration Services Component (DoD 4105.59-H). A disbursing office shall be designated for each contract in accordance with 20–706.

20–702.3 Contract Administration Office. The contract administration office shall:

(i) be responsible for assuring compliance with the terms of the contract

as to contract administration functions listed in 1-406 (but see

20_703); (ii) serve as a focal point for all inquiries regarding status of deliveries

and production, quality of material, and other contract administra

tion matters; (iii) keep the purchasing office and other interested activities advised of

all pertinent matters related to the administration of the contract;

and (iv) assign supporting contract administration when required. 20–703 Retention of Contract Administration by the Purchasing Office.

20–703.1 General. When field contract administration functions are not required, contracts shall be retained for administration by the purchasing office. When any field contract administration service is required, the contract will be assigned for administration regardless of dollar value (however, see 20–703.3).

20–703.2 Contracts for Special Categories of Supplies or Services. The purchasing office may retain responsibility for administration of contracts listed below:

(i) contracts for Category III and other highly sensitive items procured

by Army Materiel Command for National Security Agency;
(ii) contracts for coal or bulk petroleum;
(iii) research and development contracts covered under 4-101(a)(1),

(2), (3), (4) and (5);
(iv) grants (see 4–108);
(v) contracts for flight training;
(vi) contracts for headstones and gravemarkers;

(vii) contracts for industry technical representatives;
(viii) contracts for consultant support services;
(ix) geodesy mapping, air charting, and information center contracts;
(x) base, post, camp, and station purchases (see 20–703.1);
(xi) contracts for operation or maintenance of, or installation of equip-

ment at, radar or communications network sites, e.g., SAGE,

BMEWS, JCSAN, WHITE ALICE, etc; (xii) communications service contracts; (xiii) contracts for installation, operation and maintenance of spacetrack

sensors and relays; (xiv) Dependents Medicare Program contracts; (xv) stevedoring contracts; (xvi) contracts for construction and maintenance of military and civil

public works, including harbors, docks, port facilities, military housing, development of recreational facilities, water resources, flood

control, and public utilities; (xvii) architect-engineer (A-E) contracts; (xviii) contracts for Airlift and Sealift-Military Airlift Command and Mili

tary Sealift Command may perform contract administration services at contractor locations involved solely in performance of airlift or

sealift contracts; (xix) contracts for subsistence supplies: (xx) ballistic missile site contracts—supporting administration of these

contracts may be performed at missile activation sites during the installation, test, and checkout of the missiles and associated equip

ment; and (xxi) contracts for operation and maintenance of, or installation of equip

ment at, military test ranges, facilities, and installations. To avoid duplication of field contract administration capability, except for the performance of (xviii) and (xx) above, contract administration personnel from the purchasing office shall not be located at contractor's facilities. If field assistance from a DoD contract administration services component is needed in the administration of these contracts, such assistance will be requested by assignment of supporting contract administration to the contract administration offices listed in DoD Directory 4105.59-H as cognizant of the contractor's facility (facilities) at which the supporting contract administration function(s) is required. Specific instructions as to the assistance needed will be furnished. If field assistance is needed in the performance of the major portion of applicable contract administration functions, the contract will be reassigned to the cognizant contract administration office.

20–703.3 Retention of Normal, or Assignment of Additional Functions.

(a) The purchasing office may withhold, after consulting with the contract administration office when appropriate, specific contract administration functions on individual contracts when the performance of such functions can best be accomplished by the purchasing office (see 20–702.1).

(b) On individual contracts, it may be advisable for the purchasing office to delegate to the contract administration office functions which have not been designated in 1-406(c) as contract administration functions. Similarly, by individual contract or groups of contracts, authority may be delegated for contract administration offices to issue orders under the provisioning procedures contained in contracts, and to issue orders under Basic Ordering Agreements for such items and services as are identified in the schedule; provided, however, that such delegation has been approved by the Head of the Procuring Activity or his designee. Prior to issuing delegations under this paragraph, the purchasing office shall coordinate with the contract administration office to assure availability of resources for performing the additional functions. Except as already provided for under this paragraph and under 1-406, new or follow-on procurement by the contract administration office shall not be authorized.

(c) The purchasing office shall advise the contractor, the contract administration office, and other appropriate activities, in writing, of the functions withheld or additional functions assigned.

20–704 Supporting Contract Administration.

(a) Supporting contract administration (see 1-201.31), when required for administration of a portion of the contract being performed at a different location, shall be requested in writing of the contract administration office normally cognizant of each of the contractor's facilities in which the work is to be performed. The request shall be made by the office having contract administration cognizance for the contract. Individual requests for quality assurance and transportation support are not required in those cases where specific distribution of the contract was made pursuant to 20 401(d)(ii)(E). The request shall clearly state the applicable functions to be performed. A copy of the pertinent contractual and other necessary documents shall be attached thereto. Generally, the office for performing supporting functions shall be selected from the list in DoD 4105.59-H. However, in special circumstances (for example, when contractor's work site is a military base), a component of a military command not listed in DOD 4105.59-H may be selected to perform supporting contract administration when prior coordination between the offices concerned has indicated that such an arrangement is feasible and that adequate resources are available.

(b) The prime contractor is responsible for managing his subcontract program, and the contract administration office function normally is limited to evaluating the effectiveness of the prime contractor's management of this program. Therefore, except when performance of contract administration duties by Government personnel is authorized elsewhere in this Regulation, administration of subcontracts by the Government shall not be assumed unless undue cost to the Government would otherwise be incurred or successful completion of the contract is threatened.

20–705 Reserved.

20_706 Designation of the Disbursing Office. The purchasing office shall designate in the contract a disbursing office in accordance with (a) or (b) below:

(a) Defense Contract Administration Services Disbursing Office. Contracts assigned to an office of Defense Contract Administration Services for administration shall also specify disbursement by the cognizant Defense Contract Administration Services Regional Office if funded with DOD funds (i.e., department codes 17 (Navy), 21 (Army), 57 (Air Force), 97 (OSD, including Defense Agen

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