FAR 42.1105—Assignment of criticality designator.
Plain-English Summary
FAR 42.1105 tells contracting officers how to assign a criticality designator to each contract when identifying the contract administration office. The section establishes three designators—A, B, and C—and ties each one to a specific level of urgency or supply importance. Designator A is reserved for critical contracts, including DX-rated contracts, contracts awarded under the unusual and compelling urgency authority at 6.302-2, and contracts for major systems. Designator B applies to contracts that are not A but are needed to keep a Government or contractor production or repair line running, avoid out-of-stock conditions, or satisfy user needs for nonstock items. Designator C is the default category for all other contracts. In practice, this designation helps the Government prioritize contract administration attention and resources, especially where performance delays could affect mission-critical programs, production continuity, or urgent operational needs.
Key Rules
Assign a designator to every contract
The contracting officer must place a criticality designator on each contract in the space used to identify the contract administration office. This is a mandatory administrative step, not an optional label.
Use designator A for critical contracts
Designator A applies to critical contracts, including DX-rated contracts, contracts awarded under the authority of 6.302-2 for unusual and compelling urgency, and contracts for major systems. These are the highest-priority contracts under this section.
Use designator B for supply continuity needs
Designator B covers contracts that are not A but are needed to keep a Government or contractor production or repair line operating, prevent out-of-stock conditions, or meet user needs for nonstock items. The focus is on avoiding disruption and shortages.
Use designator C as the default
All contracts that do not meet the criteria for A or B must be assigned designator C. This is the catch-all category for routine contracts.
Apply the criteria in order
The A criteria are evaluated first, then B, and then C. A contract should not be downgraded to B or C if it fits the higher-priority A category.
Responsibilities
Contracting Officer
Assign the correct criticality designator to each contract based on the criteria in this section and enter it in the designated contract administration office space. The contracting officer must distinguish between critical, supply-continuity, and routine contracts.
Contract Administration Office
Use the assigned criticality designator to help prioritize administration attention and resources for the contract. The office relies on the contracting officer’s designation to understand relative urgency and importance.
Program/Requirement Owner
Provide accurate information about mission urgency, production-line impact, stock status, and whether the requirement involves a major system or urgent need so the contracting officer can assign the proper designator.
Contractor
Understand the assigned designator as an indicator of Government priority and administration focus, and support any information needed to confirm whether the contract affects production continuity, repair lines, or supply availability.
Practical Implications
This designation affects how quickly the Government may focus on administration issues, so getting it right matters for urgent and mission-critical work.
A common pitfall is treating designator A as a general “important contract” label; it is limited to the specific categories listed in the rule.
Another frequent mistake is overlooking contracts that support production or repair continuity or prevent stockouts, which may qualify for B even if they are not urgent in the same way as A.
Routine contracts should not be overclassified as A or B, because that can distort administration priorities and dilute attention from truly critical contracts.
Contracting officers should document the basis for the designation in a way that can be supported later, especially when the contract falls near the line between A and B.
Official Regulatory Text
Contracting officers shall assign a criticality designator to each contract in the space for designating the contract administration office, as follows: Criticality Designator Criterion A Critical contracts, including DX-rated contracts (see subpart 11.6 ), contracts citing the authority in 6.302-2 (unusual and compelling urgency), and contracts for major systems. B Contracts (other than those designated "A") for items needed to maintain a Government or contractor production or repair line, to preclude out-of-stock conditions or to meet user needs for nonstock items. C All contracts other than those designated "A" or "B."