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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 receive ing 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.

Part 9–Corporate Administrative Contracting Officer (CACO) 20-901 Scope. This Part sets forth (i) policy and procedures for the assignment of a single Corporate Administrative Contracting Officer (CACO) to deal with corporate management for selected multi-division contractors and (ii) duties and responsibilities of the assigned CACO, including his relationship to other contracting officers, particularly those within other contract administration organizations.

20–902 Policy. Many contractors with more than one operational location (divisions, plants, subsidiaries, etc.) have corporate-wide policies, procedures and activities requiring Government review or approval which may be more efficiently performed by a single administrative contracting officer who has been delegated appropriate authority. To promote effectiveness and consistency in the performance of contract administration service functions, a CACO may be designated and given responsibility for performing functions as provided herein.

20–903 Assignment. Corporate administrative contracting officers, when warranted, shall be assigned as follows:

(a) When all divisions of a corporate entity are under the contract administration cognizance of a single department, that department shall determine the necessity for and designate the component of that department responsible for assigning the CACO.

(b) When a corporate entity has divisions under the contract administration cognizance of more than one department, CACO assignments shall be determined by majority vote among the departments concerned. When agreement cannot be reached or an appeal is desired against a majority decision, the matter shall be referred to the Office of the Assistant Secretary of Defense (Installations and Logistics) for resolution. Any contract administration office which believes, that with respect to a specific contractor, the appointment of a CACO is needed, will recommend such action to their departmental headquarters and request designation of a coordinator until the matter is fully resolved. The primary criterion determining the department responsible for assignment of a CACO will be the unliquidated dollar balance of contracts being administered. This information may be requested from the appropriate CAS components by the departmental coordinator. Other important considerations should include the geographic location of the corporate office, the location of the contract audit coordinator and any other particular factors which may be relevant to the particular case. When CACO responsibility has been assigned, that office shall notify the Director of the Defense Supply Agency, Attention: DCAS-JP, in order that information concerning the CACO assignment may be included in the DoD Directory of Contract Administration Services Components (DoD 4105.59-H).

20–904 Duties and Responsibilities of the CACO.

(a) Concurrently with the assignment of a CACO, duties and responsibilities of the CACO shall be selected from the functions listed in 1-406 which, in whole or in part, should be performed on a corporate-wide basis. Specific items shall be determined by majority vote among the Departments concerned. When agreement cannot be reached or an appeal is desired against a majority decision, the matter shall be referred to the Office of the Assistant Secretary of Defense (Installations and Logistics) for resolution.

(b) The CACO shall be responsible for the negotiation and determination of corporate or home office overhead rates for cost reimbursement type contracts (3-700) and for the negotiation of advance agreements for independent research and development costs and bid and proposal costs (15-107, 15–205.35 and 15-205.3) except when this responsibility is assigned in the master list published annually in a Defense Procurement Circular for Tri-Service Departmental negotiation. Departmental Tri-Service contracting officers may delegate such negotiations to established CACOs. The corporate or home office overhead rates negotiated and dollar amounts allocated in accordance with the negotiation to lesser organizational segments of the contractor such as groups, divisions and plants are not subject to further negotiation or audit determination by Government representatives at those levels. The CACO shall make full use of the Defense Contract Audit Agency financial and advisory accounting services by (i) maintaining close liaison with his audit counterpart, the Contract Audit Coordinator (CAC), especially when the acceptability of corporate-wide policies are concerned; and (ii) utilization of advisory audit reports as contemplated by 3–705.

(c) The CACO shall keep divisional ACOs and tri-service groups advised of important matters under consideration, determinations made, and shall solicit their advice and participation when appropriate.


A list of current CFR volumes, a list of superseded CFR volumes, and a list of CFR titles, subtitles, chapters, subchapters and parts are included in the CFR Index to the Code of Federal Regulations which is published separately and revised annually.

Table of CFR Titles and Chapters
Alphabetical List of Agencies Appearing in the CFR
List of CFR Sections Affected

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