FAR 42.601—General.
Plain-English Summary
FAR 42.601 explains when the Government may need to use a corporate administrative contracting officer, or CACO, instead of relying only on individual administrative contracting officers (ACOs) at separate contract locations. The section focuses on contractors that operate through more than one location, such as divisions, plants, or subsidiaries, and whose corporate-wide policies, procedures, or activities require Government review and approval. It recognizes that some contractor decisions affect multiple contracts and multiple ACOs, so contract administration can become inconsistent or inefficient if handled only at the local level. The purpose of the section is to support effective, coordinated, and consistent administration across the contractor’s organization by allowing one ACO to handle selected corporate-wide matters. In practice, this means the Government may centralize certain oversight and approval functions when contractor practices have enterprise-wide impact, while still leaving day-to-day administration with the appropriate local ACOs where appropriate.
Key Rules
Multiple locations may trigger CACO use
When a contractor has more than one operational location, corporate-level issues may affect more than one ACO. In that situation, the Government may need a CACO to coordinate administration across the contractor’s organization.
Corporate-wide matters need centralized review
If the contractor has policies, procedures, or activities that require Government review and approval and apply across the company, those matters may be better handled at the corporate level rather than separately by each ACO.
CACO supports consistent administration
The section exists to promote effective and consistent contract administration when the same contractor practice affects multiple contracts or locations. A CACO can help avoid conflicting decisions by different ACOs.
CACO performs selected functions
A CACO does not replace all local contract administration. Instead, the CACO performs selected contract administration functions on a corporate-wide basis, while local ACOs may continue handling location-specific matters.
Responsibilities
Contracting Officer / Agency
Determine whether the contractor’s organizational structure and corporate-wide activities justify assigning a CACO. Ensure contract administration is coordinated so Government review and approval of corporate-level matters is handled consistently across affected locations.
Corporate Administrative Contracting Officer (CACO)
Deal with corporate management on matters that affect more than one administrative contracting officer and perform selected contract administration functions on a corporate-wide basis.
Administrative Contracting Officer (ACO)
Continue administering contract matters within the ACO’s assigned scope while coordinating with the CACO when corporate-wide policies, procedures, or activities affect the ACO’s contracts.
Contractor
Provide corporate-wide policies, procedures, and activities for Government review and approval when required, and coordinate with the appropriate Government officials when those matters affect multiple locations or contracts.
Practical Implications
This section matters when a contractor’s headquarters or shared corporate functions influence multiple contracts, because one local ACO may not be able to manage the issue consistently across the enterprise.
A common pitfall is treating a corporate-wide policy as if it were only a local issue; that can lead to inconsistent approvals, duplicated effort, or conflicting Government direction.
Contractors should expect closer coordination when changes in accounting practices, purchasing systems, quality systems, or other corporate controls affect several sites or contracts.
Contracting personnel should watch for overlap between local ACO authority and corporate-level oversight so responsibilities are clear and decisions are not made twice or contradicted.
For contractors, the practical takeaway is that enterprise-wide practices can draw Government attention at the corporate level, so internal controls and approval processes should be organized with cross-location administration in mind.
Official Regulatory Text
Contractors with more than one operational location ( e.g., division, plant, or subsidiary) often have corporate-wide policies, procedures, and activities requiring Government review and approval and affecting the work of more than one administrative contracting officer (ACO). In these circumstances, effective and consistent contract administration may require the assignment of a corporate administrative contracting officer (CACO) to deal with corporate management and to perform selected contract administration functions on a corporate-wide basis.