FAR 42.1103—Policy.
Plain-English Summary
FAR 42.1103 states the basic policy for contract performance surveillance and administration. It covers three core topics: the contractor’s responsibility for timely contract performance, the Government’s authority and duty to maintain surveillance of contractor performance as needed to protect the Government’s interests, and the contracting officer’s role in deciding how much surveillance is appropriate when the contracting office retains administration of the contract. In practice, this section establishes that the contractor remains accountable for meeting schedule and performance requirements, while the Government does not passively wait for problems to appear. Instead, the Government may monitor performance to the extent necessary to manage risk, identify issues early, and protect schedule, cost, and mission objectives. The section is important because it sets the policy foundation for contract administration oversight without prescribing a rigid one-size-fits-all monitoring method. It also clarifies that surveillance intensity is a judgment call tied to the needs of the specific contract and the administering contracting officer’s discretion.
Key Rules
Contractor owns timely performance
The contractor is responsible for completing the work on time. This means schedule compliance is a contractual obligation, not something the Government must manage for the contractor.
Government may surveil performance
The Government will maintain surveillance of contractor performance as necessary to protect its interests. The level of oversight is driven by the Government’s need to detect issues, verify progress, and safeguard contract outcomes.
Administering CO sets surveillance level
When the contracting office retains administration, the contracting officer administering the contract determines how much surveillance is needed. The decision should reflect the contract’s risk, complexity, and performance sensitivity.
Responsibilities
Contractor
Perform the contract on time and remain accountable for meeting all delivery and performance requirements. The contractor should manage its own schedule, resources, and subcontractors so that Government surveillance is not relied on as a substitute for performance management.
Government
Maintain performance surveillance as needed to protect the Government’s interests. The Government should monitor enough to identify performance problems, confirm progress, and support timely corrective action when necessary.
Contracting Officer Administering the Contract
Determine the extent of surveillance when the contracting office retains contract administration. The contracting officer should tailor oversight to the contract’s circumstances and ensure the surveillance approach is sufficient to protect the Government’s interests.
Practical Implications
Contractors should not assume the Government will catch schedule problems early or help manage performance; the contractor remains fully responsible for on-time delivery.
The Government should scale surveillance to the contract’s risk and complexity, rather than applying the same oversight level to every contract.
A common pitfall is treating surveillance as a substitute for active contract management by the contractor; this can lead to missed milestones and avoidable disputes.
Contracting officers should document and adjust surveillance expectations as conditions change, especially on high-risk or performance-sensitive contracts.
This policy supports early detection of performance issues, but it does not create a detailed surveillance procedure; agencies must still use sound judgment and contract administration practices.
Official Regulatory Text
The contractor is responsible for timely contract performance. The Government will maintain surveillance of contractor performance as necessary to protect its interests. When the contracting office retains a contract for administration, the contracting officer administering the contract shall determine the extent of surveillance.