Contract Audit Services (Various Solicitations)

Contract Audit Services (Various Solicitations) is an indirect funding opportunity representing contract audit engagements issued by various federal agencies including DCAA, GSA, and DoD. Under the Federal Acquisition Regulation (FAR) Part 42, federal agencies assign contract audit responsibilities to qualified CPA firms to review contractor cost representations, verify incurred costs, and support contract pricing decisions.

Contract amounts vary depending on the scope and duration of the audit engagement. Eligible firms must be licensed Certified Public Accounting firms with experience in government auditing standards (GAGAS), experience auditing federal contractors, and must maintain an active peer review program. Solicitations are posted through agency procurement systems and SAM.

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Part 42 - Contract Administration and Audit Services | Acquisition.

GOV Effective Date: 03/13/2026 Part Part 1 Part 2 Part 3 Part 4 Part 5 Part 6 Part 7 Part 8 Part 9 Part 10 Part 11 Part 12 Part 13 Part 14 Part 15 Part 16 Part 17 Part 18 Part 19 Part 20 Part 21 Part 22 Part 23 Part 24 Part 25 Part 26 Part 27 Part 28 Part 29 Part 30 Part 31 Part 32 Part 33 Part 34 Part 35 Part 36 Part 37 Part 38 Part 39 Part 40 Part 41 Part 42 Part 43 Part 44 Part 45 Part 46 Part 47 Part 48 Part 49 Part 50 Part 51 Part 52 Part 53 Subpart 42.

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17 Part 42 - Contract Administration and Audit Services Part 42 - Contract Administration and Audit Services 42. 002 Interagency agreements. 42.

003 Cognizant Federal agency. Subpart 42. 1 - Contract Audit Services 42.

101 Contract audit responsibilities. 42. 102 Assignment of contract audit services.

42. 103 Contract audit services directory. Subpart 42.

2 - Contract Administration Services 42. 201 Contract administration responsibilities. 42.

202 Assignment of contract administration. 42. 203 Contract administration services directory.

Subpart 42. 3 - Contract Administration Office Functions 42. 302 Contract administration functions.

Subpart 42. 4 - Correspondence and Visits 42. 401 Contract correspondence.

42. 402 Visits to contractors’ facilities. 42.

403 Evaluation of contract administration offices. Subpart 42. 5 - Postaward Orientation 42.

502 Selecting contracts for postaward orientation. 42. 503 Postaward conferences.

42. 503-1 Postaward conference arrangements. 42.

503-2 Postaward conference procedure. 42. 503-3 Postaward conference report.

42. 504 Postaward letters. 42.

505 Postaward subcontractor conferences. Subpart 42. 6 - Corporate Administrative Contracting Officer 42.

602 Assignment and location. Subpart 42. 7 - Indirect Cost Rates 42.

703-2 Certificate of indirect costs. 42. 705 Final indirect cost rates.

42. 705-1 Contracting officer determination procedure. 42.

705-2 Auditor determination procedure. 42. 705-3 Educational institutions.

42. 705-4 State and local governments. 42.

705-5 Nonprofit organizations other than educational and state and local governments. 42. 706 Distribution of documents.

42. 707 Cost-sharing rates and limitations on indirect cost rates. 42.

708 Quick-closeout procedure. 42. 709 Penalties for Unallowable Costs.

42. 709-3 Responsibilities. 42.

709-4 Assessing the penalty. 42. 709-5 Computing Interest.

42. 709-6 Waiver of the penalty. 42.

709-7 Contract clause. Subpart 42. 8 - Disallowance of Costs 42.

801 Notice of intent to disallow costs. 42. 803 Disallowing costs after incurrence.

Subpart 42. 9 - Bankruptcy 42. 903 Solicitation provision and contract clause.

Subpart 42. 10 - [Reserved] Subpart 42. 11 - Production Surveillance and Reporting 42.

1104 Surveillance requirements. 42. 1105 Assignment of criticality designator.

42. 1106 Reporting requirements. Subpart 42.

12 - Novation and Change-of-Name Agreements 42. 1200 Scope of subpart. 42.

1202 Responsibility for executing agreements. 42. 1203 Processing agreements.

42. 1204 Applicability of novation agreements. 42.

1205 Agreement to recognize contractor’s change of name. Subpart 42. 13 - Suspension of Work, Stop-Work Orders, and Government Delay of Work 42.

1302 Suspension of work. 42. 1303 Stop-work orders.

42. 1304 Government delay of work. 42.

1305 Contract clauses. Subpart 42. 14 - [Reserved] Subpart 42.

15 - Contractor Performance Information 42. 1500 Scope of subpart. Subpart 42.

16 - Small Business Contract Administration Subpart 42. 17 - Forward Pricing Rate Agreements This part prescribes policies and procedures for assigning and performing contract administration and contract audit services. 42.

002 Interagency agreements. (a) Agencies shall avoid duplicate audits, reviews, inspections , and examinations of contractors or subcontractors, by more than one agency, through the use of interagency agreements. (b) Subject to the fiscal regulations of the agencies and applicable interagency agreements, the requesting agency shall reimburse the servicing agency for rendered services in accordance with the Economy Act ( 31 U.S.C.

1535 ). (c) When an interagency agreement is established, the agencies are encouraged to consider establishing procedures for the resolution of issues that may arise under the agreement. 42.

003 Cognizant Federal agency. (a) For contractors other than educational institutions and nonprofit organizations, the cognizant Federal agency normally will be the agency with the largest dollar amount of negotiated contracts, including options . For educational institutions (defined as institutions of higher education in the OMB Uniform Guidance at 2 CFR part 200 , subpart A, and 20 U .

S. C. 1001) and nonprofit organizations (as defined in the OMB Uniform Guidance at 2 CFR part 200 ), the cognizant Federal agency for indirect costs is established according to the OMB Uniform Guidance at 2 CFR part 200 , appendices III and IV, respectively.

(b) Once a Federal agency assumes cognizance for a contractor, it should remain cognizant for at least 5 years to ensure continuity and ease of administration. If, at the end of the 5-year period, another agency has the largest dollar amount of negotiated contracts, including options , the two agencies shall coordinate and determine which will assume cognizance.

However, if circumstances warrant it and the affected agencies agree, cognizance may transfer prior to the expiration of the 5-year period. Subpart 42. 1 - Contract Audit Services 42.

101 Contract audit responsibilities.

(a) The auditor is responsible for- (1) Submitting information and advice to the requesting activity, based on the auditor’s analysis of the contractor’s financial and accounting records or other related data as to the acceptability of the contractor’s incurred and estimated costs; (2) Reviewing the financial and accounting aspects of the contractor’s cost control systems; and (3) Performing other analyses and reviews that require access to the contractor’s financial and accounting records supporting proposed and incurred costs.

(b) Normally, for contractors other than educational institutions and nonprofit organizations, the Defense Contract Audit Agency (DCAA) is the responsible Government audit agency. However, there may be instances where an agency other than DCAA desires cognizance of a particular contractor. In those instances, the two agencies shall agree on the most efficient and economical approach to meet contract audit requirements.

For educational institutions (defined as institutions of higher education in the OMB Uniform Guidance at 2 CFR part 200 , subpart A, and 20 U . S. C.

1001) and nonprofit organizations (as defined in the OMB Uniform Guidance at 2 CFR part 200 ), audit cognizance will be determined according to the provisions of the OMB Uniform Guidance at 2 CFR part 200 , subpart F. 42. 102 Assignment of contract audit services.

(a) As provided in agency procedures or interagency agreements, contracting officers may request audit services directly from the responsible audit agency cited in the Directory of Federal Contract Audit Offices. The audit request should include a suspense date and should identify any information needed by the contracting officer .

(b) The responsible audit agency may decline requests for services on a case-by-case basis, if resources of the audit agency are inadequate to accomplish the tasks. Declinations shall be in writing . 42.

103 Contract audit services directory. (a) DCAA maintains and distributes the Directory of Federal Contract Audit Offices. The directory identifies cognizant audit offices and the contractors over which they have cognizance.

Changes to audit cognizance shall be provided to DCAA so that the directory can be updated. (b) Agencies may obtain a copy of the directory or information concerning cognizant audit offices by contacting the- Defense Contract Audit Agency ATTN: CMO Publications Officer 8725 John J. Kingman Road Suite 2135 Fort Belvoir, VA 22060-6219.

Subpart 42. 2 - Contract Administration Services 42. 201 Contract administration responsibilities.

(a) For each contract assigned for administration, the contract administration office (CAO) (see 2. 101 ) shall - (1) Perform the functions listed in 42. 302 (a) to the extent that they apply to the contract, except for the functions specifically withheld; (2) Perform the functions listed in 42.

302 (b) only when and to the extent specifically authorized by the contracting officer ; and (3) Request supporting contract administration under 42. 202 (e) and (f) when it is required. (b) The Defense Contract Management Agency and other agencies offer a wide variety of contract administration and support services.

42. 202 Assignment of contract administration. (a) Delegating functions .

As provided in agency procedures, contracting officers may delegate contract administration or specialized support services, either through interagency agreements or by direct request to the cognizant CAO listed in the Federal Directory of Contract Administration Services Components .

The delegation should include- (1) The name and address of the CAO designated to perform the administration (this information also shall be entered in the contract); (2) Any special instructions, including any functions withheld or any specific authorization to perform functions listed in 42.

302 (b); (3) A copy of the contract to be administered; and (4) Copies of all contracting agency regulations or directives that are- (i) Incorporated into the contract by reference; or (ii) Otherwise necessary to administer the contract, unless copies have been provided previously. (b) Special instructions .

As necessary, the contracting officer also shall advise the contractor (and other activities as appropriate) of any functions withheld from or additional functions delegated to the CAO. (c) Delegating additional functions . For individual contracts or groups of contracts, the contracting office may delegate to the CAO functions not listed in 42.

302 , provided that- (1) Prior coordination with the CAO ensures the availability of required resources; (2) In the case of authority to issue orders under provisioning procedures in existing contracts and under basic ordering agreements for items and services identified in the schedule, the head of the contracting activity or designee approves the delegation; and (3) The delegation does not require the CAO to undertake new or follow-on acquisitions .

(d) Rescinding functions . The contracting officer at the requesting agency may rescind or recall a delegation to administer a contract or perform a contract administration function, except for functions pertaining to cost accounting standards and negotiation of forward pricing rates and indirect cost rates (also see 42. 003 ).

The requesting agency must coordinate with the ACO to establish a reasonable transition period prior to rescinding or recalling the delegation. (e) Secondary delegations of contract administration.

(1) A CAO that has been delegated administration of a contract under paragraph (a) or (c) of this section, or a contracting office retaining contract administration, may request supporting contract administration from the CAO cognizant of the contractor location where performance of specific contract administration functions is required.

The request shall - (ii) Clearly state the specific functions to be performed; and (iii) Be accompanied by a copy of pertinent contractual and other necessary documents. (2) The prime contractor is responsible for managing its subcontracts. The CAO’s review of subcontracts is normally limited to evaluating the prime contractor’s management of the subcontracts (see part 44 ).

Therefore, supporting contract administration shall not be used for subcontracts unless- (i) The Government otherwise would incur undue cost; (ii) Successful completion of the prime contract is threatened; or (iii) It is authorized under paragraph (f) of this section or elsewhere in this regulation. (f) Special surveillance .

For major system acquisitions (see part 34 ), the contracting officer may designate certain high risk or critical subsystems or components for special surveillance in addition to requesting supporting contract administration. This surveillance shall be conducted in a manner consistent with the policy of requesting that the cognizant CAO perform contract administration functions at a contractor’s facility (see 42. 002 ).

(g) Refusing delegation of contract administration . An agency may decline a request for contract administration services on a case-by-case basis if resources of the agency are inadequate to accomplish the tasks. Declinations shall be in writing .

42. 203 Contract administration services directory. The Defense Contract Management Agency (DCMA) maintains the Federal Directory of Contract Administration Services Components .

The directory lists the names and telephone numbers of those DCMA and other agency offices that offer contract administration services within designated geographic areas and at specified contractor plants. Federal agencies may access it on the Internet at https://piee. eb.

mil/pcm/xhtml/unauth/index. xhtml . For additional information contact- Defense Contract Management Agency 3901 A Avenue Building 10500 Ft.

Lee, VA 23801-1809. Subpart 42. 3 - Contract Administration Office Functions When a contract is assigned for administration under subpart 42.

2 , the contract administration office (CAO) shall perform contract administration functions in accordance with 48 CFR Chapter 1, the contract terms, and, unless otherwise agreed to in an interagency agreement (see 42. 002 ), the applicable regulations of the servicing agency . 42.

302 Contract administration functions. (a) The contracting officer normally delegates the following contract administration functions to a CAO. The contracting officer may retain any of these functions, except those in paragraphs (a)(5), (a)(9), (a)(11) and (a)(12) of this section, unless the cognizant Federal agency (see 2.

101 ) has designated the contracting officer to perform these functions. (1) Review the contractor’s compensation structure. (2) Review the contractor’s insurance plans.

(3) Conduct post-award orientation conferences. (4) Review and evaluate contractors’ proposals under subpart 15. 4 and, when negotiation will be accomplished by the contracting officer , furnish comments and recommendations to that officer.

(5) Negotiate forward pricing rate agreements (see 15. 407-3 ). (6) Negotiate advance agreements applicable to treatment of costs under contracts currently assigned for administration (see 31.

109 ). (7) Determine the allowability of costs suspended or disapproved as required (see subpart 42. 8 ), direct the suspension or disapproval of costs when there is reason to believe they should be suspended or disapproved, and approve final vouchers.

(8) Issue Notices of Intent to Disallow or not Recognize Costs (see subpart 42. 8 ). (9) Establish final indirect cost rates and billing rates for those contractors meeting the criteria for contracting officer determination in subpart 42.

7 . (10) Attempt to resolve issues in controversy, using ADR procedures when appropriate (see subpart 33. 2 ); prepare findings of fact and issue decisions under the Disputes clause on matters in which the administrative contracting officer (ACO) has the authority to take definitive action.

(11) In connection with Cost Accounting Standards (see 30.

601 and 48 CFR chapter 99 )- (i) Determine the adequacy of the contractor’s disclosure statements; (ii) Determine whether disclosure statements are in compliance with Cost Accounting Standards and part 31 ; (iii) Determine the contractor’s compliance with Cost Accounting Standards and disclosure statements, if applicable; and (iv) Negotiate price adjustments and execute supplemental agreements under the Cost Accounting Standards clauses at 52.

230-2 , 52. 230-3 , 52. 230-4 , 52.

230-5 , and 52. 230-6 . (12) Determine the adequacy of the contractor’s accounting system.

The contractor’s accounting system should be adequate during the entire period of contract performance.

The adequacy of the contractor’s accounting system and its associated internal control system, as well as contractor compliance with the Cost Accounting Standards (CAS), affect the quality and validity of the contractor data upon which the Government must rely for its management oversight of the contractor and contract performance.

(13) Review and approve or disapprove the contractor’s requests for payments under the progress payments or performance-based payments clauses. (14) Make payments on assigned contracts when prescribed in agency acquisition regulations. (15) Manage special bank accounts.

(16) Ensure timely notification by the contractor of any anticipated overrun or underrun of the estimated cost under cost-reimbursement contracts. (17) Monitor the contractor’s financial condition and advise the contracting officer when it jeopardizes contract performance. (18) Analyze quarterly limitation on payments statements and take action in accordance with subpart 32.

6 to recover overpayments from the contractor. (19) Issue tax exemption forms. (20) Ensure processing and execution of duty-free entry certificates.

(21) For classified contracts , administer those portions of the applicable industrial security program delegated to the CAO (see subpart 4. 4 ). (22) Issue work requests under maintenance, overhaul, and modification contracts.

(23) Negotiate prices and execute supplemental agreements for spare parts and other items selected through provisioning procedures when prescribed by agency acquisition regulations. (24) Negotiate and execute contractual documents for settlement of partial and complete contract terminations for convenience, except as otherwise prescribed by part 49 .

(25) Negotiate and execute contractual documents settling cancellation charges under multiyear contracts. (26) Process and execute novation and change of name agreements under subpart 42. 12 .

(27) Perform property administration (see part 45 ). (28) Perform necessary screening, redistribution, and disposal of contractor inventory. (29) Issue contract modifications requiring the contractor to provide packing, crating, and handling services on excess Government property.

When the ACO determines it to be in the Government’s interests, the services may be secured from a contractor other than the contractor in possession of the property.

(30) When contractors request Government property- (i) Evaluate the contractor’s requests for Government property and for changes to existing Government property and provide appropriate recommendations to the contracting officer ; (ii) Ensure required screening of Government property before acquisition by the contractor; (iii) Evaluate the use of Government property on a non-interference basis in accordance with the clause at 52.

245-9 , Use and Charges; (iv) Ensure payment by the contractor of any rental due; and (v) Modify contracts to reflect the addition of Government-furnished property and ensure appropriate consideration. (31) Perform production support, surveillance, and status reporting, including timely reporting of potential and actual slippages in contract delivery schedules. (32) Perform preaward surveys (see subpart 9.

1 ). (33) Advise and assist contractors regarding their priorities and allocations responsibilities and assist contracting offices in processing requests for special assistance and for priority ratings for privately owned capital equipment.

(34) Monitor contractor industrial labor relations matters under the contract; apprise the contracting officer and, if designated by the agency, the cognizant labor relations advisor, of actual or potential labor disputes; and coordinate the removal of urgently required material from the strikebound contractor’s plant upon instruction from, and authorization of, the contracting officer .

(35) Perform traffic management services, including issuance and control of Government bills of lading and other transportation documents. (36) Review the adequacy of the contractor’s traffic operations. (37) Review and evaluate preservation, packaging, and packing.

(38) Ensure contractor compliance with contractual quality assurance requirements (see part 46 ). (39) Ensure contractor compliance with contractual safety requirements. (40) Perform engineering surveillance to assess compliance with contractual terms for schedule, cost, and technical performance in the areas of design, development, and production.

(41) Evaluate for adequacy and perform surveillance of contractor engineering efforts and management systems that relate to design, development, production, engineering changes, subcontractors, tests, management of engineering resources, reliability and maintainability, data control systems, configuration management, and independent research and development.

(42) Review and evaluate for technical adequacy the contractor’s logistics support, maintenance, and modification programs. (43) Report to the contracting office any inadequacies noted in specifications. (44) Perform engineering analyses of contractor cost proposals.

(45) Review and analyze contractor-proposed engineering and design studies and submit comments and recommendations to the contracting office , as required. (46) Review engineering change proposals for proper classification, and when required, for need, technical adequacy of design, producibility, and impact on quality, reliability, schedule, and cost; submit comments to the contracting office .

(47) Assist in evaluating and make recommendations for acceptance or rejection of waivers and deviations. (48) Evaluate and monitor the contractor’s procedures for complying with procedures regarding restrictive markings on data. (49) Monitor the contractor’s value engineering program.

(50) Review, approve or disapprove, and maintain surveillance of the contractor’s purchasing system (see part 44 ). (51) Consent to the placement of subcontracts. (52) Review, evaluate, and approve plant or division-wide small, small disadvantaged, women-owned, veteran-owned, HUBZone , and service-disabled veteran-owned small business master subcontracting plans.

(53) Obtain the contractor’s currently approved company- or division-wide plans for small, small disadvantaged, women-owned, veteran-owned, HUBZone , and service-disabled veteran-owned small business subcontracting for its commercial products , or, if there is no currently approved plan, assist the contracting officer in evaluating the plans for those products .

(54) Assist the contracting officer , upon request, in evaluating an offeror ’s proposed small, small disadvantaged women-owned, veteran-owned, HUBZone , and service-disabled veteran-owned small business subcontracting plans, including documentation of compliance with similar plans under prior contracts.

(55) By periodic surveillance, ensure the contractor’s compliance with small, small disadvantaged, women-owned, veteran-owned, HUBZone , and service-disabled veteran-owned small business subcontracting plans and any labor surplus area contractual requirements; maintain documentation of the contractor’s performance under and compliance with these plans and requirements; and provide advice and assistance to the firms involved, as appropriate.

(56) Maintain surveillance of flight operations. (57) Assign and perform supporting contract administration. (58) Ensure timely submission of required reports.

(59) Issue administrative changes, correcting errors or omissions in typing, contractor address, facility or activity code, remittance address, computations which do not require additional contract funds, and other such changes (see 43. 101 ). (60) Cause release of shipments from contractor’s plants according to the shipping instructions.

When applicable, the order of assigned priority shall be followed; shipments within the same priority shall be determined by date of the instruction. (61) Obtain contractor proposals for any contract price adjustments resulting from amended shipping instructions. Review all amended shipping instructions on a periodic, consolidated basis to ensure that adjustments are timely made.

Except when the ACO has settlement authority, the ACO shall forward the proposal to the contracting officer for contract modification . The ACO shall not delay shipments pending completion and formalization of negotiations of revised shipping instructions. (62) Negotiate and/or execute supplemental agreements , as required, making changes in packaging subcontractors or contract shipping points.

(63) Cancel unilateral purchase orders when notified of nonacceptance by the contractor. The CAO shall notify the contracting officer when the purchase order is canceled. (64) Negotiate and execute one-time supplemental agreements providing for the extension of contract delivery schedules up to 90 days on contracts with an assigned Criticality Designator of C (see 42.

1105 ). Notification that the contract delivery schedule is being extended shall be provided to the contracting office . Subsequent extensions on any individual contract shall be authorized only upon concurrence of the contracting office .

(65) Accomplish administrative closeout procedures (see 4. 804-5 ). (66) Determine that the contractor has a drug-free workplace program and drug-free awareness program (see subpart 26.

5 ). (67) Support the program, product, and project offices regarding program reviews, program status, program performance and actual or anticipated program problems. (68) Monitor the contractor’s environmental practices for adverse impact on contract performance or contract cost, and for compliance with environmental requirements specified in the contract.

ACO responsibilities include- (i) Requesting environmental technical assistance, if needed; (ii) Monitoring contractor compliance with specifications or other contractual requirements requiring the delivery, use, or furnishing of sustainable products and services (as defined in 2. 101 ) in accordance with the clause at 52. 223-23 .

This must occur as part of the quality assurance procedures set forth in part 46 ; and (iii) As required in the contract, ensuring that the contractor complies with the reporting requirements relating to recovered material content (see 52. 223-9 ) and biobased products (see 52. 223-2 ) utilized in contract performance.

(69) Administer commercial financing provisions and monitor contractor security to ensure its continued adequacy to cover outstanding payments, when on-site review is required. (70) Deobligate excess funds after final price determination. (71) Ensure that the contractor has implemented the requirements of 52.

203-13 , Contractor Code of Business Ethics and Conduct. (b) The CAO shall perform the following functions only when and to the extent specifically authorized by the contracting office : (1) Negotiate or negotiate and execute supplemental agreements incorporating contractor proposals resulting from change orders issued under the Changes clause.

Before completing negotiations, coordinate any delivery schedule change with the contracting office . (2) Negotiate prices and execute priced exhibits for unpriced orders issued by the contracting officer under basic ordering agreements. (3) Negotiate or negotiate and execute supplemental agreements changing contract delivery schedules.

(4) Negotiate or negotiate and execute supplemental agreements providing for the deobligation of unexpended dollar balances considered excess to known contract requirements. (5) Issue amended shipping instructions and, when necessary, negotiate and execute supplemental agreements incorporating contractor proposals resulting from these instructions. (6) Negotiate changes to interim billing prices.

(7) Negotiate and definitize adjustments to contract prices resulting from exercise of an economic price adjustment clause (see subpart 16. 2 ). (8) Issue change orders and negotiate and execute resulting supplemental agreements under contracts for ship construction , conversion, and repair.

(9) Execute supplemental agreements on firm-fixed-price supply contracts to reduce required line item quantities and deobligate excess funds when notified by the contractor of an inconsequential delivery shortage, and it is determined that such action is in the best interests of the Government, notwithstanding the default provisions of the contract.

Such action will be taken only upon the written request of the contractor and, in no event, shall the total downward contract price adjustment resulting from an inconsequential delivery shortage exceed $250. 00 or 5 percent of the contract price, whichever is less.

(10) Execute supplemental agreements to permit a change in place of inspection at origin specified in firm-fixed-price supply contracts awarded to nonmanufacturers, as deemed necessary to protect the Government’s interests. (11) Prepare evaluations of contractor performance in accordance with subpart 42. 15 .

(c) Any additional contract administration functions not listed in 42. 302 (a) and (b), or not otherwise delegated, remain the responsibility of the contracting office . Subpart 42.

4 - Correspondence and Visits 42. 401 Contract correspondence. (a) The contracting officer (or other contracting agency personnel) normally shall (1) forward correspondence relating to assigned contract administration functions through the cognizant contract administration office (CAO) to the contractor, and (2) provide a copy for the CAO’s file.

When urgency requires sending such correspondence directly to the contractor, a copy shall be sent concurrently to the CAO. (b) The CAO shall send the contracting office a copy of pertinent correspondence conducted between the CAO and the contractor. 42.

402 Visits to contractors’ facilities. (a) Government personnel planning to visit a contractor’s facility in connection with one or more Government contracts shall provide the cognizant CAO with the following information, sufficiently in advance to permit the CAO to make necessary arrangements.

Such notification is for the purpose of eliminating duplicative reviews, requests, investigations, and audits relating to the contract administration functions in subpart 42. 3 delegated to CAO’s and shall , as a minimum, include the following (see also paragraph (b) of this section): (1) Visitors’ names, official positions, and security clearances. (2) Date and duration of visit.

(3) Name and address of contractor and personnel to be contacted. (4) Contract number, program involved, and purpose of visit. (5) If desired, visitors to a contractor’s plant may request that a representative of the CAO accompany them.

In any event, the CAO has final authority to decide whether a representative shall accompany a visitor.

(b) If the visit will result in reviewing, auditing, or obtaining any information from the contractor relating to contract administration functions, the prospective visitor shall identify the information in sufficient detail so as to permit the CAO, after consultation with the contractor and the cognizant audit office, to determine whether such information, adequate to fulfill the requirement, has recently been reviewed by or is available within the Government.

If so, the CAO will discourage the visit and refer the prospective visitor to the Government office where such information is located. Where the office is the CAO, such information will be immediately forwarded or otherwise made available to the requestor. (c) Visitors shall fully inform the CAO of any agreements reached with the contractor or other results of the visit that may affect the CAO.

42. 403 Evaluation of contract administration offices. Onsite inspections or evaluations of the performance of the assigned functions of a contract administration office shall be accomplished only by or under the direction of the agency of which that office is a part.

Subpart 42. 5 - Postaward Orientation This subpart prescribes policies and procedures for the postaward orientation of contractors and subcontractors through- (b) A letter or other form of written communication. (a) A postaward orientation aids both Government and contractor personnel to (1) achieve a clear and mutual understanding of all contract requirements, and (2) identify and resolve potential problems.

However, it is not a substitute for the contractor’s fully understanding the work requirements at the time offers are submitted, nor is it to be used to alter the final agreement arrived at in any negotiations leading to contract award.

(b) Postaward orientation is encouraged to assist (see part 19 )- (1) Small business concerns; (2) Small disadvantaged business concerns ; (3) Veteran-owned small business concerns; (4) Service-disabled veteran-owned small business concerns; (5) HUBZone small business concerns; and (6) Women-owned small business concerns (including economically disadvantaged women-owned small business concerns and women-owned small business concerns eligible under the Women-Owned Small Business Program).

(c) While cognizant Government or contractor personnel may request the contracting officer to arrange for orientation, it is up to the contracting officer to decide whether a postaward orientation in any form is necessary. (d) Maximum benefits will be realized when orientation is conducted promptly after award. 42.

502 Selecting contracts for postaward orientation.

When deciding whether postaward orientation is necessary and, if so, what form it shall take, the contracting officer shall consider, as a minimum, the- (a) Nature and extent of the preaward survey and any other prior discussions with the contractor; (b) Type, value, and complexity of the contract; (c) Complexity and acquisition history of the product or service; (d) Requirements for spare parts and related equipment; (e) Urgency of the delivery schedule and relationship of the product or service to critical programs; (f) Length of the planned production cycle; (g) Extent of subcontracting; (h) Contractor’s performance history and experience with the product or service; (i) Contractor’s status, if any, as a small business, small disadvantaged, women-owned, veteran-owned, HUBZone , or service-disabled veteran-owned small business concern; (j) Contractor’s performance history with small, small disadvantaged, women-owned, veteran-owned, HUBZone , and service-disabled veteran-owned small business subcontracting programs; (k) Safety precautions required for hazardous materials or operations; and (l) Complex financing arrangements, such as progress payments, advance payments, or guaranteed loans.

42. 503 Postaward conferences. 42.

503-1 Postaward conference arrangements.

(a) The contracting officer who decides that a conference is needed is responsible for- (1) Establishing the time and place of the conference; (2) Preparing the agenda, when necessary; (3) Notifying appropriate Government representatives ( e.g., contracting / contract administration office ) and the contractor; (4) Designating or acting as the chairperson; (5) Conducting a preliminary meeting of Government personnel; and (6) Preparing a summary report of the conference.

(b) When the contracting office initiates