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DFARS 242



Part 242—Contract Administration

TABLE OF CONTENTS

(Revised June 29, 2012)

242.002 Interagency agreements.

SUBPART 242.2--CONTRACT ADMINISTRATION SERVICES

242.200-70 Scope of subpart.

242.202 Assignment of contract administration.

SUBPART 242.3--CONTRACT ADMINISTRATION OFFICE FUNCTIONS

242.301 General.

242.302 Contract administration functions.

SUBPART 242.5--POSTAWARD ORIENTATION

242.503 Postaward conferences.

242.503-2 Postaward conference procedure.

SUBPART 242.6--CORPORATE ADMINISTRATIVE CONTRACTING OFFICER

242.602 Assignment and location.

SUBPART 242.7--INDIRECT COST RATES

242.705 Final indirect cost rates.

242.705-1 Contracting officer determination procedure.

242.705-2 Auditor determination procedure.

242.770 Reserved.

242.771 Independent research and development and bid and proposal costs.

242.771-1 Scope.

242.771-2 Policy.

242.771-3 Responsibilities.

SUBPART 242.8--DISALLOWANCE OF COSTS

242.803 Disallowing costs after incurrence.

SUBPART 242.11—PRODUCTION SURVEILLANCE AND REPORTING

242.1104 Surveillance requirements.

242.1105 Assignment of criticality designator.

242.1106 Reporting requirements.

242.1107 Contract clause.

SUBPART 242.12--NOVATION AND CHANGE-OF-NAME AGREEMENTS

242.1203 Processing agreements.

242.1204 Agreement to recognize a successor in interest (novation agreement).

SUBPART 242.15—CONTRACTOR PERFORMANCE INFORMATION

242.1502 Policy.

SUBPART 242.70-- CONTRACTOR BUSINESS SYSTEMS.

242.7000 Contractor business system deficiencies.

242.7001 Contract clause.

SUBPART 242.71--VOLUNTARY REFUNDS

242.7100 General.

SUBPART 242.72--CONTRACTOR MATERIAL MANAGEMENT AND
ACCOUNTING SYSTEM

242.7200 Scope of subpart.

242.7201 Definitions.

242.7202 Policy.

242.7203 Review procedures.

242.7204 Contract clause.

SUBPART 242.73--CONTRACTOR INSURANCE/PENSION REVIEW

242.7301 General.

242.7302 Requirements.

242.7303 Responsibilities.

SUBPART 242.74--TECHNICAL REPRESENTATION AT CONTRACTOR
FACILITIES

242.7400 General.

242.7401 Procedures.

SUBPART 242.75--CONTRACTOR ACCOUNTING SYSTEMS AND RELATED CONTROLS

242.7501 Definitions.

242.7502 Policy.

242.7503 Contract clause.

(Revised November 9, 2005)

242.002 Interagency agreements.

SUBPART 242.1--(REMOVED)

(November 09, 1999)

SUBPART 242.2--CONTRACT ADMINISTRATION SERVICES

(Revised April 20, 2012)

242.200-70 Scope of subpart.

This subpart does not address the contract administration role of a contracting officer's representative (see 201.602).

242.202 Assignment of contract administration.

https://pubapp.dcma.mil/CASD/main.jsp). An example is a situation where the

contractor's work site is on a military base and a base organization is asked to provide support. Before formally sending the request, coordinate with the office concerned to ensure that resources are available for, and capable of, providing the support.

SUBPART 242.3--CONTRACT ADMINISTRATION OFFICE FUNCTIONS

(Revised June 26, 2015)

242.301 General.

Contract administration services performed outside the United States should be performed in accordance with FAR 42.301 unless there are no policies and procedures covering a given situation. In this case, coordinate proposed actions with the appropriate U.S. country teams or commanders of unified and specified commands.

242.302 Contract administration functions.

implementation of SPOT.

SUBPART 242.4

(Removed November 9, 2005)

SUBPART 242.5--POSTAWARD ORIENTATION

(Revised November 24, 2010)

242.503 Postaward conferences.

242.503-2 Postaward conference procedure.

conference and in preparing the conference report.

SUBPART 242.6--CORPORATE ADMINISTRATIVE CONTRACTING OFFICER

(Revised February 14, 2003)

242.602 Assignment and location.

SUBPART 242.7--INDIRECT COST RATES

(Revised November 9, 2005)

242.705 Final indirect cost rates.

242.705-1 Contracting officer determination procedure.

242.705-2 Auditor determination procedure.

242.770 Reserved.

242.771 Independent research and development and bid and proposal costs.

242.771-1 Scope.

This section implements 10 U.S.C. 2372, Independent research and development and bid and proposal costs: payments to contractors.

242.771-2 Policy.

Defense contractors are encouraged to engage in independent research and development and bid and proposal (IR&D/B&P) activities of potential interest to DoD, including activities cited in 231.205-18(c)(iii)(B).

242.771-3 Responsibilities.

SUBPART 242.8--DISALLOWANCE OF COSTS

(Revised August 29, 2012)

242.803 Disallowing costs after incurrence.

SUBPART 242.11--PRODUCTION SURVEILLANCE AND REPORTING

(Revised April 23, 2008)

242.1104 Surveillance requirements.

242.1105 Assignment of criticality designator.

242.1106 Reporting requirements.

242.1107 Contract clause.

SUBPART 242.12--NOVATION AND CHANGE-OF-NAME AGREEMENTS

(Revised November 9, 2005)

242.1203 Processing agreements.

The responsible contracting officer shall process and execute novation and change-of-name agreements in accordance with the procedures at PGI 242.1203.

242.1204 Agreement to recognize a successor in interest (novation agreement).

SUBPART 242.14--TRAFFIC AND TRANSPORTATION MANAGEMENT

(Removed June 29, 2012)

SUBPART 242.15—CONTRACTOR PERFORMANCE INFORMATION

(Added May 19, 2006)

242.1502 Policy.

See DoD Class Deviation 2013-O0018, Past Performance Evaluation Thresholds and Reporting Requirements, issued on September 24, 2013. This class deviation establishes thresholds for past performance reporting on DoD actions and requires past performance reporting for contracts awarded under FAR subpart 8.7, Acquisition from Nonprofit Agencies Employing People Who are Blind or Severely Handicapped, when the thresholds in Class Deviation 2012-O0018 are exceeded. The class deviation also encourages contracting officers to manually register and complete assessment reports on science and technology contracts and delivery/task orders under budget accounts 6.1, 6.2, and 6.3 over $1,000,000. This deviation is effective until incorporated in the DFARS or rescinded.

SUBPART 242.70-- CONTRACTOR BUSINESS SYSTEMS

(Revised February 24, 2012)

242.7000 Contractor business system deficiencies.

(a) Definitions. As used in this subpart——

Acceptable contractor business systems” and “contractor business systems” are defined in the clause at 252.242-7005, Contractor Business Systems.

“Covered contract” means a contract that is subject to the Cost Accounting Standards under 41 U.S.C. chapter 15, as implemented in regulations found at 48 CFR 9903.201-1

(see the FAR Appendix) (10 U.S.C. 2302 note, as amended by section 816 of Public Law 112-81).

“Significant deficiency” is defined in the clause at 252.242-7005, Contractor Business Systems.

payments, performance-based payments, and interim payments under cost-

reimbursement, labor-hour, and time-and-materials contracts billed under each of the

identified covered contracts. Similarly, the contracting officer shall ensure that the total amount of payment withholding under the clause at 252.242-7005, Contractor Business Systems, for each business system does not exceed five percent of progress

payments, performance-based payments, and interim payments under cost-

reimbursement, labor-hour, and time-and-materials contracts billed under each of the

identified covered contracts. The contracting officer has the sole discretion to identify the covered contracts from which to withhold payments.

(2) Promptly notify the contractor, in writing, of the contracting officer’s determination to implement payment withholding in accordance with the clause at 252.242-7005, Contractor Business Systems. The notice of payment withholding shall be included in the contracting officer’s written final determination for the contractor business system and shall inform the contractor that—

corrective actions have been implemented and are expected to correct the significant

deficiencies.

242.7001 Contract clause.

Use the clause at 252.242-7005, Contractor Business Systems, in solicitations and

contracts (other than in contracts with educational institutions, Federally Funded

Research and Development Centers (FFRDCs), or University Associated Research

Centers (UARCs) operated by educational institutions) when—

Administration.

SUBPART 242.71--VOLUNTARY REFUNDS

(Revised November 9, 2005)

242.7100 General.

A voluntary refund is a payment or credit (adjustment under one or more contracts or subcontracts) to the Government from a contractor or subcontractor that is not required by any contractual or other legal obligation. Follow the procedures at PGI 242.7100 for voluntary refunds.

SUBPART 242.72--CONTRACTOR MATERIAL MANAGEMENT AND ACCOUNTING SYSTEM

(Revised December 31, 2012)

242.7200 Scope of subpart.

242.7201 Definitions.

“Acceptable material management and accounting system,” “material management and accounting system,” and “valid time-phased requirements” are defined in the clause at 252.242-7004, Material Management and Accounting System.

“Significant deficiency” is defined in the clause at 252.242.7004, Material Management and Accounting System.

242.7202 Policy.

242.7203 Review procedures.

data were required under 10 U.S.C. 2306a, as implemented in FAR 15.403, or that are contracts priced on other than a firm-fixed-price or fixed-price with economic price adjustment basis. Sales include prime contracts, subcontracts, and modifications to such contracts and subcontracts.

242.7204 Contract clause.

Use the clause at 252.242-7004, Material Management and Accounting System, in all solicitations and contracts exceeding the simplified acquisition threshold that are not for the acquisition of commercial items and—

SUBPART 242.73--CONTRACTOR INSURANCE/PENSION REVIEW

(Revised December 31, 2012)

242.7301 General.

FAR subparts 30.2 and 30.6 as they relate to a contractor’s insurance programs,

pension plans, and other deferred compensation plans.

242.7302 Requirements.

required under 10 U.S.C. 2306a, as implemented in FAR 15.403, or that are contracts priced on other than a firm-fixed-price or fixed-price with economic price adjustment basis. Sales include prime contracts, subcontracts, and modifications to such contracts and subcontracts.

insurance/pension program.

242.7303 Responsibilities.

Follow the procedures at PGI 242.7303 when conducting a CIPR.

SUBPART 242.74--TECHNICAL REPRESENTATION AT CONTRACTOR FACILITIES

(Revised November 9, 2005)

242.7400 General.

242.7401 Procedures.

When the program, project, or system manager determines that a technical representative is required, follow the procedures at PGI 242.7401.

SUBPART 242.75--CONTRACTOR ACCOUNTING SYSTEMS AND RELATED CONTROLS

(Revised February 26, 2015)

242.7501 Definitions.

As used in this subpart—

“Acceptable accounting system,” and “accounting system” are defined in the clause at 252.242-7006, Accounting System Administration.

“Significant deficiency” is defined in the clause at 252.242-7006, Accounting System Administration.

242.7502 Policy.

deficiency impacts the negotiations. See PGI 242.7502(g)(2). If it does not, the

contracting officer should proceed with negotiations. If it does, the contracting officer

should consider other alternatives, e.g.—

the contract amount after award.

242.7503 Contract clause.

Use the clause at 252.242-7006, Accounting System Administration, in solicitations and contracts when contemplating—

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