FAR 42.202—Assignment of contract administration.
Plain-English Summary
FAR 42.202 explains how contract administration responsibilities are assigned, transferred, limited, recalled, and supplemented between contracting offices and contract administration offices (CAOs). It covers delegation of administration and specialized support services, what information must accompany a delegation, how contracting officers must notify contractors of withheld or additional functions, when extra functions beyond the standard list in FAR 42.302 may be delegated, and when a delegation may be rescinded or recalled. It also addresses secondary delegations for supporting contract administration, the limits on using those delegations for subcontract oversight, special surveillance for major system acquisitions, and an agency’s ability to decline a request for administration services when resources are insufficient. In practice, this section is about making sure the right office performs the right oversight work, with clear documentation, coordination, and boundaries so contract administration is efficient, legally supportable, and aligned with the Government’s needs. It matters because poor delegation can create gaps in oversight, duplicate effort, delay administration, or improperly shift work that should remain with the requesting agency or the prime contractor.
Key Rules
Delegate in Writing
Contracting officers may delegate contract administration or specialized support services under agency procedures, either through interagency agreements or direct request to the cognizant CAO. The delegation package should identify the CAO, include the contract, and provide needed regulations, directives, and special instructions.
Identify Withheld Functions
The contracting officer must tell the contractor, and other affected activities as appropriate, which functions are withheld from the CAO and which additional functions have been delegated. The contract itself must also show the designated CAO.
Extra Functions Need Coordination
A contracting office may delegate functions not listed in FAR 42.302 for individual contracts or groups of contracts if the CAO has the resources and the delegation does not require the CAO to conduct new or follow-on acquisitions. Delegations involving ordering authority under provisioning procedures or BOAs require approval by the head of the contracting activity or designee.
Recall With Transition
The requesting agency may rescind or recall a delegation, except for certain cost accounting standards and forward pricing/indirect rate functions. Before doing so, the agency must coordinate with the ACO to allow a reasonable transition period.
Secondary Support Is Limited
A CAO or retaining contracting office may request supporting contract administration from the CAO at the contractor’s location for specific functions, but the request must be written, specific, and supported by pertinent documents. This support is not to be used for subcontract administration except in limited circumstances.
Prime Controls Subcontracts
The prime contractor remains responsible for managing subcontracts, and Government review is normally limited to evaluating the prime’s subcontract management. Supporting contract administration for subcontracts is allowed only when needed to avoid undue Government cost, protect successful completion of the prime contract, or when otherwise authorized.
Special Surveillance for Major Systems
For major system acquisitions, the contracting officer may designate high-risk or critical subsystems or components for special surveillance in addition to requesting supporting administration. That surveillance must be consistent with the policy favoring administration by the cognizant CAO at the contractor’s facility.
Declinations Must Be Written
An agency may refuse a request for contract administration services on a case-by-case basis if it lacks adequate resources. Any declination must be in writing.
Responsibilities
Contracting Officer
Delegate contract administration or specialized support services in accordance with agency procedures; include the required delegation information and documents; advise the contractor of withheld or additional functions; coordinate and document any rescission or recall; and, for major systems, designate special surveillance when appropriate.
Contract Administration Office (CAO) / Administrative Contracting Officer (ACO)
Perform delegated administration functions, accept or support secondary delegations when resources permit, and coordinate transition when a delegation is being rescinded or recalled. The CAO may also request supporting administration from another cognizant CAO when specific functions must be performed at the contractor’s facility.
Head of the Contracting Activity (HCA) or Designee
Approve delegations of authority to issue orders under provisioning procedures in existing contracts and under basic ordering agreements for items and services identified in the schedule.
Requesting Agency
Coordinate with the ACO before rescinding or recalling a delegation and allow a reasonable transition period; ensure administration assignments are managed without disrupting contract performance or oversight.
Contractor
Receive and follow the Government’s notices regarding which functions are withheld or delegated; continue managing its subcontracts, since subcontract oversight remains primarily the contractor’s responsibility.
Supporting CAO at Contractor Location
Perform only the specific contract administration functions requested in writing and supported by the necessary documents, subject to the limits on subcontract administration and the scope of the delegation.
Agency Declining a Request
If it cannot provide requested contract administration services due to inadequate resources, issue a written declination on a case-by-case basis.
Practical Implications
This section is a documentation-heavy control point: if the delegation package is incomplete, the receiving office may not have enough authority or information to act effectively.
Contracting officers should be careful to distinguish between standard administration functions, extra delegated functions, and functions that must remain withheld; unclear boundaries can create disputes over authority.
Subcontract oversight is a common pitfall. The Government generally does not administer subcontracts directly, so requests for supporting administration should be narrowly tailored and justified.
If a delegation is being recalled, the transition period matters. Abrupt changes can interrupt surveillance, payment support, pricing support, or other administration tasks.
For major systems, special surveillance should be targeted to high-risk or critical items, not used as a substitute for broader program management or for improper subcontract administration.
Agencies should not accept or decline administration requests casually; a written declination based on inadequate resources helps preserve accountability and avoids confusion over who is responsible for oversight.
Official Regulatory Text
(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- (i) Be in writing; (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.