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.

shall:

20-702.3 Contract Administration Office. The contract administration office

(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 administration 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 equipment 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 Military 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 equipment; and

(xxi) contracts for operation and maintenance of, or installation of equipment 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

cies), and 43 (Civil Defense). For any other department or agency funds, the payment office serving that department or agency must be cited for the portion of the contract covered by non-DOD funds, even though the contract is otherwise wholly administered by the DCASR.

(b) Other Disbursing Office(s). Any contract not assigned to a Defense Contract Administration Services Office for administration shall designate a disbursing office in accordance with Departmental or Agency regulations. Such contract, if issued for requirements of more than one Department or Agency, may provide for payment by more than one disbursing office.

20-707 Reassignment of Contract Administration and Disbursing Responsibility. Changes in assignment on account of changes in place of manufacture or for other reasons shall be made by the procuring contracting officer by issuance of a unilateral contract modification. However, when a contract is initially incorrectly assigned, a contracting officer at the contract administration office receiving such assignment shall issue a unilateral contract modification reassigning the contract to the correct contract administration office and disbursing office. Also, when a contractor is reassigned to another contract administration office on account of transfer of plant cognizance, establishment or disestablishment of a contract administration office, or change in geographical assignment of a contract administration office, the contract administration office having cognizance of the contract prior to the reassignment shall issue a unilateral contract modification reassigning the contracts to the newly assigned contract administration office and disbursing office. In accomplishing any change of assignment, the contract administration office shall assure that the contract and files and necessary supporting documents are transmitted to the correct contract administration office.

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Part 8-Correspondence and Visits

20-801 Contract Correspondence.

(a) Generally, correspondence relating to contract administration functions shall be forwarded to the contractor via the cognizant contract administration office with a copy supplied for the file of the contract administration office. If, under urgent circumstances, direct correspondence is necessary, a copy shall be forwarded concurrently to the contract administration office.

(b) A copy of pertinent correspondence between the contract administration office and the contractor shall be sent to the purchasing office.

20-802 Visits to Contractor's Plants.

(a) Planning Visits. When visits to a contractor's facility are planned, the contract administration office shall be provided the following information prior to such visits:

(i) name, official position, and activity represented by visitor;
(ii) date of intended visit;

(iii) name and address of contractor and personnel to be contacted;
(iv) contract number and program involved, and purpose of visit;
(v) security clearance (If access to classified information will be in-
volved, the contractor must be given advance notice, in writing, as
required by the Industrial Security Regulation (DoD 5220.22—R);
(vi) if desired, a request that a representative of the contract administra-
tion office accompany the visitor (In the absence of such a request,
the contract administration office may elect to have a representative
accompany the visitor.).

(b) Discussions With the Contractor, and Reporting Results of Visits. Agreements reached with the contractor by authorized personnel during a visit shall be reduced to writing and a copy furnished to the contract administration office if it is affected. If the contract administration office was not represented, visitors will furnish to that office the status of any unresolved problems, and information on data requested from the contractor.

20-803 Evaluation of Contract Administration Offices. The on-site inspection, surveillance or evaluation of contract administration activities in the performance of their assigned functions shall only be accomplished by or under the direction of the parent Department or the Office of the Secretary of Defense organization element having this responsibility.