Subchapter G - Contract Management

Federal Acquisition Regulation

Federal Acquisition Regulation

Part 42 - Contract Administration and Audit Services

42.000 Scope of part.

42.001 [Reserved]

42.002 Interagency agreements.

42.003 Cognizant Federal agency.

Subpart 42.1 - Contract Audit Services

42.101 Contract audit responsibilities.

42.102 Assignment of contract audit services.

42.103 Contract audit services directory.

Subpart 42.2 - Contract Administration Services

42.201 Contract administration responsibilities.

42.202 Assignment of contract administration.

42.203 Contract administration services directory.

Subpart 42.3 - Contract Administration Office Functions

42.301 General.

42.302 Contract administration functions.

Subpart 42.4 - Correspondence and Visits

42.401 Contract correspondence.

42.402 Visits to contractors’ facilities.

42.403 Evaluation of contract administration offices.

Subpart 42.5 - Postaward Orientation

42.500 Scope of subpart.

42.501 General.

42.502 Selecting contracts for postaward orientation.

42.503 Postaward conferences.

42.503-1 Postaward conference arrangements.

42.503-2 Postaward conference procedure.

42.503-3 Postaward conference report.

42.504 Postaward letters.

42.505 Postaward subcontractor conferences.

Subpart 42.6 - Corporate Administrative Contracting Officer

42.601 General.

42.602 Assignment and location.

42.603 Responsibilities.

Subpart 42.7 - Indirect Cost Rates

42.700 Scope of subpart.

42.701 Definition.

42.702 Purpose.

42.703 General.

42.703-1 Policy.

42.703-2 Certificate of indirect costs.

42.704 Billing rates.

42.705 Final indirect cost rates.

42.705-1 Contracting officer determination procedure.
42.705-2 Auditor determination procedure.

42.705-3 Educational institutions.

42.705-4 State and local governments.

42.705-5 Nonprofit organizations other than educational and state and

local governments.

42.706 Distribution of documents.

42.707 Cost-sharing rates and limitations on indirect cost rates.

42.708 Quick-closeout procedure.

42.709 Penalties for Unallowable Costs.

42.709-1 Scope.

42.709-2 General.

42.709-3 Responsibilities.

42.709-4 Assessing the penalty.

42.709-5 Computing Interest.

42.709-6 Waiver of the penalty.

42.709-7 Contract clause.

Subpart 42.8 - Disallowance of Costs

42.800 Scope of subpart.

42.801 Notice of intent to disallow costs.

42.802 Contract clause.

42.803 Disallowing costs after incurrence.

Subpart 42.9 - Bankruptcy

42.900 Scope of subpart.

42.901 General.

42.902 Procedures.

42.903 Solicitation provision and contract clause.

Subpart 42.10 - [Reserved]

Subpart 42.11 - Production Surveillance and Reporting

42.1101 General.

42.1102 Applicability.

42.1103 Policy.

42.1104 Surveillance requirements.

42.1105 Assignment of criticality designator.

42.1106 Reporting requirements.

42.1107 Contract clause.

Subpart 42.12 - Novation and Change-of-Name Agreements

42.1200 Scope of subpart.

42.1201 [Reserved]

42.1202 Responsibility for executing agreements.

42.1203 Processing agreements.

42.1204 Applicability of novation agreements.

42.1205 Agreement to recognize contractor’s change of name.

Subpart 42.13 - Suspension of Work, Stop-Work Orders, and Government Delay of

Work

42.1301 General.

42.1302 Suspension of work.

42.1303 Stop-work orders.

42.1304 Government delay of work.

42.1305 Contract clauses.

Subpart 42.14 - [Reserved]

Subpart 42.15 - Contractor Performance Information
42.1500 Scope of subpart.

42.1501 General.

42.1502 Policy.

42.1503 Procedures.

42.1504 Contract clause.

Subpart 42.16 - Small Business Contract Administration

42.1601 General.

Subpart 42.17 - Forward Pricing Rate Agreements

42.1701 Procedures.

Part 43 - Contract Modifications

43.000 Scope of part.

Subpart 43.1 - General

43.101 Definitions.

43.102 Policy.

43.103 Types of contract modifications.

43.104 Notification of contract changes.

43.105 Availability of funds.

43.106 [Reserved]

43.107 Contract clause.

Subpart 43.2 - Change Orders

43.201 General.

43.202 Authority to issue change orders.

43.203 Change order accounting procedures.

43.204 Administration.

43.205 Contract clauses.

Subpart 43.3 - Forms

43.301 Use of forms.

Part 44 - Subcontracting Policies and Procedures

44.000 Scope of part.

Subpart 44.1 - General

44.101 Definitions.

Subpart 44.2 - Consent to Subcontracts

44.201 Consent and advance notification requirements.

44.201-1 Consent requirements.

44.201-2 Advance notification requirements.

44.202 Contracting officer’s evaluation.

44.202-1 Responsibilities.

44.202-2 Considerations.

44.203 Consent limitations.

44.204 Contract clauses.

Subpart 44.3 - Contractors’ Purchasing Systems Reviews

44.301 Objective.

44.302 Requirements.

44.303 Extent of review.

44.304 Surveillance.

44.305 Granting, withholding, or withdrawing approval.

44.305-1 Responsibilities.

44.305-2 Notification.

44.305-3 Withholding or withdrawing approval.

44.306 Disclosure of approval status.

44.307 Reports.
Subpart 44.4 - Subcontracts for Commercial Products and Commercial Services

44.400 Scope of subpart.

44.401 Applicability.

44.402 Policy requirements.

44.403 Contract clause.

Part 45 - Government Property

45.000 Scope of part.

Subpart 45.1 - General

45.101 Definitions.

45.102 Policy.

45.103 General.

45.104 Responsibility and liability for Government property.

45.105 Contractors’ property management system compliance.

45.106 Transferring accountability.

45.107 Contract clauses.

Subpart 45.2 - Solicitation and Evaluation Procedures

45.201 Solicitation.

45.202 Evaluation procedures.

Subpart 45.3 - Authorizing the Use and Rental of Government Property

45.301 Use and rental.

45.302 Contracts with foreign governments or international organizations.

45.303 Use of Government property on independent research and

development programs.

Subpart 45.4 - Title to Government Property

45.401 Title to Government-furnished property.

45.402 Title to contractor-acquired property.

Subpart 45.5 - Support Government Property Administration

45.501 Prime contractor alternate locations.

45.502 Subcontractor and alternate prime contractor locations.

45.503 Support property administrator findings.

Subpart 45.6 - Reporting, Reutilization, and Disposal

45.600 Scope of subpart.

45.601 [Reserved]

45.602 Reutilization of Government property.

45.602-1 Inventory disposal schedules.

45.602-2 Reutilization priorities.

45.602-3 Screening.

45.602-4 Interagency property transfer costs.

45.603 Abandonment or destruction of personal property.

45.604 Sale of surplus personal property.

45.604-1 Sales procedures.

45.604-2 Use of GSA sponsored sales centers.

45.604-3 Proceeds from sales of surplus property.

45.604-4 Sale of property pursuant to the exchange/sale authority.

45.605 Inventory disposal reports.

45.606 Contractor scrap procedures.

Part 46 - Quality Assurance

46.000 Scope of part.

Subpart 46.1 - General

46.101 Definitions.

46.102 Policy.
46.103 Contracting office responsibilities.

46.104 Contract administration office responsibilities.

46.105 Contractor responsibilities.

Subpart 46.2 - Contract Quality Requirements

46.201 General.

46.202 Types of contract quality requirements.

46.202-1 Contracts for commercial products and commercial services.

46.202-2 Government reliance on inspection by contractor.

46.202-3 Standard inspection requirements.

46.202-4 Higher-level contract quality requirements.

46.203 Criteria for use of contract quality requirements.

Subpart 46.3 - Contract Clauses

46.301 Contractor inspection requirements.

46.302 Fixed-price supply contracts.

46.303 Cost-reimbursement supply contracts.

46.304 Fixed-price service contracts.

46.305 Cost-reimbursement service contracts.

46.306 Time-and-material and labor-hour contracts.

46.307 Fixed-price research and development contracts.

46.308 Cost-reimbursement research and development contracts.

46.309 Research and development contracts (short form).

46.310 [Reserved]

46.311 Higher-level contract quality requirement.

46.312 Construction contracts.

46.313 Contracts for dismantling, demolition, or removal of improvements.

46.314 Transportation contracts.

46.315 Certificate of conformance.

46.316 Responsibility for supplies.

46.317 Reporting Nonconforming Items.

Subpart 46.4 - Government Contract Quality Assurance

46.401 General.

46.402 Government contract quality assurance at source.

46.403 Government contract quality assurance at destination.

46.404 Government contract quality assurance for acquisitions at or below

the simplified acquisition threshold.

46.405 Subcontracts.

46.406 Foreign governments.

46.407 Nonconforming supplies or services.

46.408 Single-agency assignments of Government contract quality

assurance.

Subpart 46.5 - Acceptance

46.501 General.

46.502 Responsibility for acceptance.

46.503 Place of acceptance.

46.504 Certificate of conformance.

46.505 Transfer of title and risk of loss.

Subpart 46.6 - Material Inspection and Receiving Reports

46.601 General.

Subpart 46.7 - Warranties

46.701 [Reserved]

46.702 General.
46.703 Criteria for use of warranties.

46.704 Authority for use of warranties.

46.705 Limitations.

46.706 Warranty terms and conditions.

46.707 Pricing aspects of fixed-price incentive contract warranties.

46.708 Warranties of data.

46.709 Warranties of commercial products and commercial services.

46.710 Contract clauses.

Subpart 46.8 - Contractor Liability for Loss of or Damage to Property of the

Government

46.800 Scope of subpart.

46.801 Applicability.

46.802 Definition.

46.803 Policy.

46.804 [Reserved]

46.805 Contract clauses.

Part 47 - Transportation

47.000 Scope of part.

47.001 Definitions.

47.002 Applicability.

Subpart 47.1 - General

47.101 Policies.

47.102 Transportation insurance.

47.103 Transportation Payment and Audit Regulation.

47.103-1 General.

47.103-2 Contract clause.

47.104 Government rate tenders under sections 10721 and 13712 of the

Interstate Commerce Act (49 U.S.C. 10721 and 13712).

47.104-1 Government rate tender procedures.

47.104-2 Fixed-price contracts.

47.104-3 Cost-reimbursement contracts.

47.104-4 Contract clauses.

47.104-5 Citation of Government rate tenders.

47.105 Transportation assistance.

Subpart 47.2 - Contracts for Transportation or for Transportation-Related Services

47.200 Scope of subpart.

47.201 Definitions.

47.202 Presolicitation planning.

47.203 [Reserved]

47.204 Single-movement contracts.

47.205 Availability of term contracts and basic ordering agreements for

transportation or for transportation-related services.

47.206 Preparation of solicitations and contracts.

47.207 Solicitation provisions, contract clauses, and special requirements.

47.207-1 Qualifications of offerors.

47.207-2 Duration of contract and time of performance.

47.207-3 Description of shipment, origin, and destination.

47.207-4 Determination of Weights.

47.207-5 Contractor responsibilities.

47.207-6 Rates and charges.

47.207-7 Liability and insurance.
47.207-8 Government responsibilities.

47.207-9 Annotation and distribution of shipping and billing

documents.

47.207-10 Discrepancies incident to shipments.

47.207-11 Volume movements within the contiguous United States.

47.208 Report of shipment (REPSHIP).

47.208-1 Advance notice.

47.208-2 Contract clause.

Subpart 47.3 - Transportation in Supply Contracts

47.300 Scope of subpart.

47.301 General.

47.301-1 Responsibilities of contracting officers.

47.301-2 Participation of transportation officers.

47.301-3 Using the Defense Transportation System (DTS).

47.302 Place of delivery-f.o.b. point.

47.303 Standard delivery terms and contract clauses.

47.303-1 F.o.b. origin.

47.303-2 F.o.b. origin, contractor’s facility.

47.303-3 F.o.b. origin, freight allowed.

47.303-4 F.o.b. origin, freight prepaid.

47.303-5 F.o.b. origin, with differentials.

47.303-6 F.o.b. destination.

47.303-7 F.o.b. destination, within consignee’s premises.

47.303-8 F.a.s. vessel, port of shipment.

47.303-9 F.o.b. vessel, port of shipment.

47.303-10 F.o.b. inland carrier, point of exportation.

47.303-11 F.o.b. inland point, country of importation.

47.303-12 Ex dock, pier, or warehouse, port of importation.

47.303-13 C. & f. destination.

47.303-14 C.i.f. destination.

47.303-15 F.o.b. designated air carrier’s terminal, point of exportation.

47.303-16 F.o.b. designated air carrier’s terminal, point of importation.

47.303-17 Contractor-prepaid commercial bills of lading, small

package shipments.

47.304 Determination of delivery terms.

47.304-1 General.

47.304-2 Shipments within CONUS.

47.304-3 Shipments from CONUS for overseas delivery.

47.304-4 Shipments originating outside CONUS.

47.304-5 Exceptions.

47.305 Solicitation provisions, contract clauses, and transportation factors.

47.305-1 Solicitation requirements.

47.305-2 Solicitations f.o.b. origin and f.o.b. destination-lowest overall

cost.

47.305-3 F.o.b. origin solicitations.

47.305-4 F.o.b. destination solicitations.

47.305-5 Destination unknown.

47.305-6 Shipments to ports and air terminals.

47.305-7 Quantity analysis, direct delivery, and reduction of

crosshauling and backhauling.

47.305-8 Consolidation of small shipments and the use of stopoff
privileges.

47.305-9 Commodity description and freight classification.

47.305-10 Packing, marking, and consignment instructions.

47.305-11 Options in shipment and delivery.

47.305-12 Delivery of Government-furnished property.

47.305-13 Transit arrangements.

47.305-14 Mode of transportation.

47.305-15 Loading responsibilities of contractors.

47.305-16 Shipping characteristics.

47.305-17 Returnable cylinders.

47.306 Transportation factors in the evaluation of offers.

47.306-1 Transportation cost determinations.

47.306-2 Lowest overall transportation costs.

47.306-3 Adequacy of loading and unloading facilities.

Subpart 47.4 - Air Transportation by U.S.-Flag Carriers

47.401 Definitions.

47.402 Policy.

47.403 Guidelines for implementation of the Fly America Act.

47.403-1 Availability and unavailability of U.S.-flag air carrier service.

47.403-2 Air transport agreements between the United States and

foreign governments.

47.403-3 Disallowance of expenditures.

47.404 Air freight forwarders.

47.405 Contract clause.

Subpart 47.5 - Ocean Transportation by U.S.-Flag Vessels

47.500 Scope of subpart.

47.501 Definitions.

47.502 Policy.

47.503 Applicability.

47.504 Exceptions.

47.505 Construction contracts.

47.506 Procedures.

47.507 Contract clauses.

Part 48 - Value Engineering

48.000 Scope of part.

48.001 Definitions.

Subpart 48.1 - Policies and Procedures

48.101 General.

48.102 Policies.

48.103 Processing value engineering change proposals.

48.104 Sharing arrangements.

48.104-1 Determining sharing period.

48.104-2 Sharing acquisition savings.

48.104-3 Sharing collateral savings.

48.104-4 Sharing alternative-no-cost settlement method.

48.105 Relationship to other incentives.

Subpart 48.2 - Contract Clauses

48.201 Clauses for supply or service contracts.

48.202 Clause for construction contracts.

Part 49 - Termination of Contracts

49.000 Scope of part.
49.001 Definitions.

49.002 Applicability.

Subpart 49.1 - General Principles

49.100 Scope of subpart.

49.101 Authorities and responsibilities.

49.102 Notice of termination.

49.103 Methods of settlement.

49.104 Duties of prime contractor after receipt of notice of termination.

49.105 Duties of termination contracting officer after issuance of notice of

termination.

49.105-1 Termination status reports.

49.105-2 Release of excess funds.

49.105-3 Termination case file.

49.105-4 Cleanup of construction site.

49.106 Fraud or other criminal conduct.

49.107 Audit of prime contract settlement proposals and subcontract

settlements.

49.108 Settlement of subcontract settlement proposals.

49.108-1 Subcontractor’s rights.

49.108-2 Prime contractor’s rights and obligations.

49.108-3 Settlement procedure.

49.108-4 Authorization for subcontract settlements without approval or

ratification.

49.108-5 Recognition of judgments and arbitration awards.

49.108-6 Delay in settling subcontractor settlement proposals.

49.108-7 Government assistance in settling subcontracts.

49.108-8 Assignment of rights under subcontracts.

49.109 Settlement agreements.

49.109-1 General.

49.109-2 Reservations.

49.109-3 Government property.

49.109-4 No-cost settlement.

49.109-5 Partial settlements.

49.109-6 Joint settlement of two or more settlement proposals.

49.109-7 Settlement by determination.

49.110 Settlement negotiation memorandum.

49.111 Review of proposed settlements.

49.112 Payment.

49.112-1 Partial payments.

49.112-2 Final payment.

49.113 Cost principles.

49.114 Unsettled contract changes.

49.115 Settlement of terminated incentive contracts.

Subpart 49.2 - Additional Principles for Fixed-Price Contracts Terminated for

Convenience

49.201 General.

49.202 Profit.

49.203 Adjustment for loss.

49.204 Deductions.

49.205 Completed end items.

49.206 Settlement proposals.
49.206-1 Submission of settlement proposals.

49.206-2 Bases for settlement proposals.

49.206-3 Submission of inventory disposal schedules.

49.207 Limitation on settlements.

49.208 Equitable adjustment after partial termination.

Subpart 49.3 - Additional Principles for Cost-Reimbursement Contracts Terminated

for Convenience

49.301 General.

49.302 Discontinuance of vouchers.

49.303 Procedure after discontinuing vouchers.

49.303-1 Submission of settlement proposal.

49.303-2 Submission of inventory disposal schedules.

49.303-3 Audit of settlement proposal.

49.303-4 Adjustment of indirect costs.

49.303-5 Final settlement.

49.304 Procedure for partial termination.

49.304-1 General.

49.304-2 Submission of settlement proposal (fee only).

49.304-3 Submission of vouchers.

49.305 Adjustment of fee.

49.305-1 General.

49.305-2 Construction contracts.

Subpart 49.4 - Termination for Default

49.401 General.

49.402 Termination of fixed-price contracts for default.

49.402-1 The Government’s right.

49.402-2 Effect of termination for default.

49.402-3 Procedure for default.

49.402-4 Procedure in lieu of termination for default.

49.402-5 Memorandum by the contracting officer.

49.402-6 Repurchase against contractor’s account.

49.402-7 Other damages.

49.402-8 Reporting Information.

49.403 Termination of cost-reimbursement contracts for default.

49.404 Surety-takeover agreements.

49.405 Completion by another contractor.

49.406 Liquidation of liability.

Subpart 49.5 - Contract Termination Clauses

49.501 General.

49.502 Termination for convenience of the Government.

49.503 Termination for convenience of the Government and default.

49.504 Termination of fixed-price contracts for default.

49.505 Other termination clauses.

Subpart 49.6 - Contract Termination Forms and Formats

49.601 Notice of termination for convenience.

49.601-1 Electronic notice.

49.601-2 Letter notice.

49.602 Forms for settlement of terminated contracts.

49.602-1 Termination settlement proposal forms.

49.602-2 Inventory forms.

49.602-3 Schedule of accounting information.
49.602-4 Partial payments.

49.602-5 Settlement agreement.

49.603 Formats for termination for convenience settlement agreements.

49.603-1 Fixed price contracts-complete termination.

49.603-2 Fixed-price contracts-partial termination.

49.603-3 Cost reimbursement contracts-complete termination, if

settlement includes cost.

49.603-4 Cost-reimbursement contracts-complete termination, with

settlement limited to fee.

49.603-5 Cost-reimbursement contracts-partial termination.

49.603-6 No-cost settlement agreement-complete termination.

49.603-7 No-cost settlement agreement-partial termination.

49.603-8 Fixed-price contracts-settlements with subcontractors only.

49.603-9 Settlement of reservations.

49.604 Release of excess funds under terminated contracts.

49.605 Request to settle subcontractor settlement proposals.

49.606 Granting subcontract settlement authorization.

49.607 Delinquency notices.

Part 50 - Extraordinary Contractual Actions and the safety act

50.000 Scope of part.

Subpart 50.1 - Extraordinary Contractual Actions

50.100 Definitions.

50.101 General.

50.101-1 Authority.

50.101-2 Policy.

50.101-3 Records.

50.102 Delegation of and limitations on exercise of authority.

50.102-1 Delegation of authority.

50.102-2 Contract adjustment boards.

50.102-3 Limitations on exercise of authority.

50.103 Contract adjustments.

50.103-1 General.

50.103-2 Types of contract adjustment.

50.103-3 Contract adjustment.

50.103-4 Facts and evidence.

50.103-5 Processing cases.

50.103-6 Disposition.

50.103-7 Contract requirements.

50.104 Residual powers.

50.104-1 Standards for use.

50.104-2 General.

50.104-3 Special procedures for unusually hazardous or nuclear risks.

50.104-4 Contract clause.

Subpart 50.2 - Support Anti-terrorism by Fostering Effective Technologies Act of

2002

50.200 Scope of subpart.

50.201 Definitions.

50.202 Authorities.

50.203 General.

50.204 Policy.

50.205 Procedures.
50.205-1 SAFETY Act Considerations.

50.205-2 Pre-qualification designation notice.

50.205-3 Authorization of offers contingent upon SAFETY Act

designation or certification before contract award.

50.205-4 Authorization of awards made presuming SAFETY Act

designation or certification after contract award.

50.206 Solicitation provisions and contract clause.

Part 51 - Use of Government Sources by Contractors

51.000 Scope of part.

Subpart 51.1 - Contractor Use of Government Supply Sources

51.100 Scope of subpart.

51.101 Policy.

51.102 Authorization to use Government supply sources.

51.103 Ordering from Government supply sources.

51.104 Furnishing assistance to contractors.

51.105 Payment for shipments.

51.106 Title.

51.107 Contract clause.

Subpart 51.2 - Contractor Use of Interagency Fleet Management System (IFMS)

Vehicles

51.200 Scope of subpart.

51.201 Policy.

51.202 Authorization.

51.203 Means of obtaining service.

51.204 Use of interagency fleet management system (IFMS) vehicles and

related services.

51.205 Contract clause.