FAR 42.1106—Reporting requirements.
Plain-English Summary
FAR 42.1106 explains when and how the Government may require contractor reporting on contract performance status, and how those reports are to be reviewed and acted on. It covers production progress reports, the rule that reporting must be limited to information essential to Government needs, and the requirement to use contractor management-system data whenever possible. It also assigns the contract administration office responsibility for reviewing and verifying report accuracy, either through continuous surveillance of the contractor’s report-preparation system or by reviewing each report individually. Finally, it authorizes the contract administration office to notify the contracting officer—and the inventory manager, if one is designated—of any actual or potential delay in performance, and it specifies that such notice must be written, timely, and include a definite recommendation when action is appropriate. In practice, this section is about making performance reporting useful, not burdensome, and ensuring the Government can detect schedule risk early enough to respond.
Key Rules
Limit reporting to essentials
When contract performance status information is needed, the contracting officer may require production progress reports, but only to the extent necessary to meet Government needs. Reporting requirements should not be broader than needed for oversight or decision-making.
Use existing contractor data
Reporting should take maximum advantage of data output generated by the contractor’s management systems. This means agencies should avoid duplicative or manually created reports when the contractor already has reliable system-generated information.
Verify report accuracy
The contract administration office must review and verify contractor reports and advise the contracting officer of any needed action. Accuracy may be checked through continuous surveillance of the report-preparation system or by reviewing each report individually.
Report delays promptly
The contract administration office may initiate a report at any time to warn of actual or potential performance delays. The purpose is early notification so the contracting officer can take corrective or protective action.
Written, timely, and actionable notice
Any delay notice must be in writing, provided early enough for the contracting officer to act, and include a definite recommendation if action is appropriate. Vague or late warnings do not satisfy the requirement.
Responsibilities
Contracting Officer
Determine when contract performance status information is needed and, if appropriate, require production progress reports. Receive delay notifications from the contract administration office and take necessary action based on the information and recommendations provided.
Contract Administration Office
Review and verify the accuracy of contractor reports, using either continuous surveillance of the report-preparation system or individual report review. Advise the contracting officer of any required action and may initiate written delay reports to the contracting officer, and to the inventory manager if one is designated.
Contractor
Submit production progress reports when required and ensure the reports accurately reflect performance status. Use management systems that can support reliable data output, since the Government is expected to rely on contractor-generated system data where possible.
Inventory Manager
Receive delay notifications when the contract designates an inventory manager, so that inventory-related impacts can be addressed alongside contracting officer actions.
Practical Implications
This section is designed to prevent over-reporting and duplicate reporting, so agencies should ask only for the minimum data needed to manage performance risk.
Contractors should expect the Government to rely on their internal management-system outputs, which makes data integrity and traceability important.
Contract administration offices need a real verification process; simply collecting reports is not enough if the reports are not checked for accuracy.
Delay warnings should be treated as early intervention tools, so late or non-specific notices can undermine the Government’s ability to mitigate schedule problems.
Contractors and COs should watch for reporting requirements that drift beyond essential information, because unnecessary reporting can create cost, burden, and compliance disputes.
Official Regulatory Text
(a) When information on contract performance status is needed, contracting officers may require contractors to submit production progress reports (see 42.1107 (a)). Reporting requirements shall be limited to that information essential to Government needs and shall take maximum advantage of data output generated by contractor management systems. (b) Contract administration offices shall review and verify the accuracy of contractor reports and advise the contracting officer of any required action. The accuracy of contractor-prepared reports shall be verified either by a program of continuous surveillance of the contractor’s report-preparation system or by individual review of each report. (c) The contract administration office may at any time initiate a report to advise the contracting officer (and the inventory manager, if one is designated in the contract) of any potential or actual delay in performance. This advice shall- (1) Be in writing; (2) Be provided in sufficient time for the contracting officer to take necessary action; and (3) Provide a definite recommendation, if action is appropriate.