FAR 42.301—General.
Plain-English Summary
FAR 42.301 explains the basic rule for contract administration when a contract has been assigned to a contract administration office (CAO) under FAR subpart 42.2. It tells the CAO what sources control its administration work: the FAR itself (48 CFR Chapter 1), the specific contract terms, and, by default, the servicing agency’s own regulations. It also points to an exception when the agencies have entered into an interagency agreement under FAR 42.002 that says something different. In practice, this section matters because it establishes the hierarchy of authorities the CAO must follow when performing post-award administration functions such as monitoring performance, processing changes, and carrying out other administrative duties delegated to the servicing office. For contractors, it clarifies that the administering office may apply both FAR requirements and agency-specific procedures, so the rules they encounter may depend on which agency is servicing the contract. For contracting officers and agencies, it is a reminder that interagency administration arrangements should be clear about which regulations govern to avoid conflicting instructions and inconsistent administration.
Key Rules
CAO Must Administer Assigned Contracts
When a contract is assigned for administration under FAR subpart 42.2, the contract administration office is responsible for performing the administration functions for that contract. This section applies only after the contract has been formally assigned for administration.
Follow the FAR First
The CAO must carry out administration in accordance with 48 CFR Chapter 1, meaning the FAR provisions that govern contract administration remain a primary source of authority. The CAO cannot ignore FAR requirements when performing its duties.
Follow the Contract Terms
The CAO must also administer the contract according to the contract’s own terms and conditions. If the contract language imposes specific administrative procedures or limits, those terms control the CAO’s actions within the scope of the contract.
Use Servicing Agency Regulations
Unless an interagency agreement says otherwise, the CAO must apply the applicable regulations of the servicing agency. This means agency-specific acquisition rules may supplement the FAR and contract terms during administration.
Interagency Agreement Can Override Default Rule
If there is an interagency agreement under FAR 42.002, that agreement may establish different administrative rules. In that case, the CAO follows the agreement rather than the default servicing-agency-regulations rule to the extent the agreement provides otherwise.
Responsibilities
Contract Administration Office (CAO)
Perform all assigned contract administration functions and do so in accordance with the FAR, the contract terms, and, by default, the servicing agency’s regulations unless an interagency agreement provides different instructions.
Contracting Officer / Assigning Agency
Assign the contract for administration under FAR subpart 42.2 and ensure the administration arrangement is clear, including any interagency agreement that changes which regulations apply.
Servicing Agency
Apply its own applicable regulations when acting as the CAO, unless an interagency agreement under FAR 42.002 states otherwise.
Contractor
Understand that the administering office may rely on FAR requirements, contract clauses, and servicing-agency procedures, and respond to administration actions based on the controlling authorities for the contract.
Practical Implications
The CAO does not operate under a single source of rules; it must reconcile the FAR, the contract, and agency-specific regulations in that order of practical importance.
Contractors may receive administrative directions that reflect servicing-agency procedures, so they should verify whether those procedures are authorized by the contract or by an interagency agreement.
A common pitfall is assuming the servicing agency’s internal rules always control; an interagency agreement may change that result, and the contract terms may also limit what the CAO can do.
Another risk is inconsistent administration when the assignment and interagency agreement are not clearly documented, leading to disputes over which office has authority and which regulations apply.
For contracting officers, the key operational issue is making sure the administration assignment and any interagency agreement are aligned so the CAO has a clear legal and procedural framework to follow.
Official Regulatory Text
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.