FAR 42.302 Breakdown: Government Roles and Delegations
On federal construction projects, knowing who possesses contractual authority is critical for protecting cash flow and avoiding unapproved work. Contracting authority is frequently divided between the primary contracting office and a contract administration office (CAO). Federal Acquisition Regulation (FAR) subpart 42.302 outlines which administration responsibilities are normally delegated to administrative contracting officers (ACOs) and which authorities remain strictly limited.
Core Delegation Rules and Mandatory Retentions
Under FAR 42.302, a contracting officer routinely assigns a wide list of administration duties to a designated CAO. The contracting officer retains the flexibility to perform many of these functions directly rather than delegating them. However, the regulation establishes a strict limit: the contracting officer may not retain four specific functions unless designated to perform them by the cognizant Federal agency under FAR 2.101.
The four non-retainable duties are:
- Negotiating forward pricing rate agreements under FAR 15.407-3 (paragraph (a)(5)).
- Establishing final indirect cost rates and billing rates for contractors meeting the contracting officer determination criteria in subpart 42.7 (paragraph (a)(9)).
- Cost Accounting Standards administration under 30.601 and 48 CFR chapter 99, including evaluating disclosure statements, auditing compliance with part 31, and executing supplemental agreements under CAS clauses 52.230-2 through 52.230-6 (paragraph (a)(11)).
- Determining the ongoing adequacy of the contractor's accounting system and associated internal controls throughout the life of the contract (paragraph (a)(12)).
Payment Processing and Financial Surveillance
For trade contractors managing payroll and material purchases, submitting pay applications to the correct government representative is vital. When contract administration is delegated, the CAO handles ongoing financial oversight under FAR 42.302(a).
The CAO reviews, approves, or disapproves payment requests submitted under progress payments or performance-based payments clauses. When prescribed by agency acquisition regulations, the administrative office also makes disbursements directly. The CAO monitors contractor financial health, alerting the contracting officer if insolvency risks threaten performance. In addition, administrative officers review quarterly limitation on payments statements, take recovery action for overpayments under subpart 32.6, handle tax exemption forms, and deobligate excess contract funds after final pricing determinations are completed.
Purchasing Reviews and Subcontracting Oversight
Specialty trade subcontractors frequently encounter federal oversight through prime contractor approvals. The administrative office maintains active surveillance over prime contractor procurement systems under FAR part 44. The CAO evaluates purchasing systems and provides formal consent to subcontract under paragraph (a)(51).
Administrative personnel also monitor small business subcontracting plans covering small, small disadvantaged, women-owned, veteran-owned, HUBZone, and service-disabled veteran-owned small business concerns. The CAO reviews master plans, assists procuring contracting officers in evaluating proposed subcontracting goals, and performs periodic surveillance to document whether prime contractors maintain compliance with their agreed subcontracting goals.
Jobsite Quality, Safety, and Environmental Controls
Routine field administration involves operational compliance checks. The CAO oversees contractor compliance with contractual quality assurance requirements under FAR part 46 and verifies adherence to contractual safety rules under paragraph (a)(39). The office also conducts engineering surveillance, tracking schedule progress, design changes, and logistical support.
Environmental management forms another major component of administrative oversight. The ACO monitors jobsite practices for compliance with contractual environmental rules, requests technical assistance when necessary, and verifies delivery of sustainable products and services specified under clause 52.223-23. The CAO also confirms compliance with reporting rules for biobased products (clause 52.223-2) and recovered material content (clause 52.223-9), while ensuring the contractor maintains an active code of business ethics under clause 52.203-13.
Change Order Limits and Delivery Schedule Extensions
Contractors often assume that an on-site administrative officer has blanket power to authorize extra work. However, under FAR 42.302(b), the CAO may only negotiate or execute supplemental agreements incorporating contractor proposals resulting from change orders when specifically authorized by the contracting office. Even when authorized, the CAO must coordinate any delivery schedule modifications with the contracting office before finalizing negotiations.
Schedule extension powers are similarly narrow. Under paragraph (a)(64), an ACO may negotiate and execute a one-time supplemental agreement extending delivery schedules up to 90 days, but only on contracts carrying an assigned Criticality Designator of C. The ACO must formally notify the contracting office, and any subsequent delivery extensions on that contract require concurrence from the contracting office. Trade contractors evaluating jobsite adjustments should recognize these limits when submitting proposals or pricing change orders.
Disputes, Administrative Adjustments, and Contract Closeout
The CAO manages administrative adjustments that do not alter contract funding. Under paragraph (a)(59), the CAO can correct typing errors, update facility codes, correct addresses, or fix mathematical calculations that do not require additional funding under FAR 43.101.
When disagreements arise, the ACO attempts to resolve controversies using Alternative Dispute Resolution (ADR) procedures under subpart 33.2. Where the ACO holds definitive authority, the officer prepares findings of fact and issues formal decisions under the Disputes clause. Once field performance finishes, the CAO executes administrative closeout procedures under FAR 4.804-5. The complete list of 71 delegated functions is established in FAR 42.302.
Sources
Published November 9, 2026. No affiliate links on this page. Facts come from the sources linked above; check them for updates.