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DFARS 242



Part 242-Contract Administration

TABLE OF CONTENTS

SUBPART 242.1--INTERAGENCY CONTRACT ADMINISTRATION AND
AUDIT SERVICES

242.101 Policy.

242.102 Procedures.

SUBPART 242.2--ASSIGNMENT OF CONTRACT ADMINISTRATION

242.200 Scope of subpart.

242.203 Retention of contract administration.

242.204 Supporting contract administration.

242.205 Designation of the paying office.

SUBPART 242.3--CONTRACT ADMINISTRATION OFFICE FUNCTIONS

242.301 General.

242.302 Contract administration functions.

SUBPART 242.4--CORRESPONDENCE AND VISITS

242.402 Visits to contractors' facilities.

SUBPART 242.5--POSTAWARD ORIENTATION

242.503 Postaward conferences.

242.503-2 Postaward conference procedure.

242.503-3 Postaward conference report.

242.570 Contract clause.

SUBPART 242.6--CORPORATE ADMINISTRATIVE CONTRACTING OFFICER

242.602 Assignment and location.

SUBPART 242.7--INDIRECT COST RATES

242.704 Billing rates.

242.705 Final indirect cost rates.

242.705-1 Contracting officer determination procedure.

242.705-2 Auditor determination procedure.

242.705-3 Educational institutions.

242.770 Reserved.

242.771 Independent research and development/bid and proposal.

242.771-1 Scope of subpart.

242.771-2 Policy.

242.771-3 Responsibilities.

SUBPART 242.8--DISALLOWANCE OF COSTS

242.801 Notice of intent to disallow 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.

242.1107-70 Solicitation provision and contract clause.

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

242.1202 Responsibility for executing agreements.

242.1203 Processing agreements.

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

SUBPART 242.14--TRAFFIC AND TRANSPORTATION MANAGEMENT

242.1401 General.

242.1402 Volume movements within the continental United States.

242.1403 Shipping documents covering f.o.b. origin shipments.

242.1404 Shipments by parcel post or other classes of mail.

242.1404-1 Parcel post eligible shipments.

242.1404-2 Contract clauses.

242.1404-2-70 Additional clause.

242.1405 Discrepancies incident to shipment of supplies.

242.1470 Demurrage and detention charges.

SUBPART 242.15--CONTRACTOR PERFORMANCE INFORMATION

242.1503 Procedures.

SUBPART 242.70--RESERVED

SUBPART 242.71--VOLUNTARY REFUNDS

242.7100 General.

242.7101 Solicited refunds.

242.7102 Disposition of voluntary refunds.

SUBPART 242.72--CONTRACTOR MATERIAL MANAGEMENT AND
ACCOUNTING SYSTEM

242.7200 Scope of subpart.

242.7201 Definitions.

242.7202 Policy.

242.7203 MMAS disclosure, demonstration, and maintenance requirements.

242.7204 Responsibilities.

242.7205 Review procedures.

242.7206 Contract clause.

SUBPART 242.73--CONTRACTOR INSURANCE/PENSION REVIEW

242.7300 Scope of subpart.

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

242.7500 Scope of subpart.

242.7501 Definition.

242.7502 Policy.

242.7503 Procedures.

SUBPART 242.1--INTERAGENCY CONTRACT ADMINISTRATION AND AUDIT SERVICES

242.101 Policy.

242.102 Procedures.

SUBPART 242.2--ASSIGNMENT OF CONTRACT ADMINISTRATION

242.200 Scope of subpart.

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

242.203 Retention of contract administration.

242.204 Supporting contract administration.

242.205 Designation of the paying office.

SUBPART 242.3--CONTRACT ADMINISTRATION OFFICE FUNCTIONS

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.

SUBPART 242.4--CORRESPONDENCE AND VISITS

242.402 Visits to contractors' facilities.

SUBPART 242.5--POSTAWARD ORIENTATION

242.503 Postaward conferences.

242.503-2 Postaward conference procedure.

Use the conference program outlined on the DD Form 1484, Post-Award Conference Record, in conducting the conference.

242.503-3 Postaward conference report.

The DD Form 1484, Post-Award Conference Record, may be used for this report.

242.570 Contract clause.

Use the clause at 252.242-7000, Postaward Conference, in solicitations and contracts.

SUBPART 242.6--CORPORATE ADMINISTRATIVE CONTRACTING OFFICER

242.602 Assignment and location.

SUBPART 242.7--INDIRECT COST RATES

242.704 Billing rates.

242.705 Final indirect cost rates.

242.705-1 Contracting officer determination procedure.

242.705-2 Auditor determination procedure.

242.705-3 Educational institutions.

242.770 Reserved.

242.771 Independent research and development/bid and proposal.

242.771-1 Scope of subpart.

This section implements Section 802 of the National Defense Authorization Act for Fiscal Years 1992 and 1993 (Pub. L. 102-190) and is effective for IR&D/B&P costs incurred by a major contractor during fiscal years of that contractor that begin on or after October 1, 1992.

242.771-2 Policy.

Defense contractors are encouraged to engage in IR&D/B&P activities of potential interest to DoD, including activities cited in 231.205-18(c)(2)(i)(2).

242.771-3 Responsibilities.

SUBPART 242.8--DISALLOWANCE OF COSTS

242.801 Notice of intent to disallow 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.

242.1107-70 Solicitation provision and contract clause.

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

242.1202 Responsibility for executing agreements.

The contracting officer responsible for processing and executing novation and change-of-name agreements shall ensure agreements are executed promptly.

242.1203 Processing agreements.

Commander

Eastern Area

Military Traffic Management Command

ATTN: MTE-LO

Bayonne, NJ 07002

Commander

Western Area

Military Traffic Management Command

Oakland Army Base

ATTN: MTW-LO

Oakland, CA 94626

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

SUBPART 242.14--TRAFFIC AND TRANSPORTATION MANAGEMENT

242.1401 General.

242.1402 Volume movements within the continental United States.

242.1403 Shipping documents covering f.o.b. origin shipments.

242.1404 Shipments by parcel post or other classes of mail.

242.1404-1 Parcel post eligible shipments.

242.1404-2 Contract clauses.

When using FAR 52.213-1, Fast Payment Procedures, do not use FAR clauses 52.242-10, F.o.b. Origin--Government Bills of Lading or Prepaid Postage, or 52.242-11, F.o.b. Origin--Government Bills of Lading or Indicia Mail.

242.1404-2-70 Additional clause.

Use the clause at 252.242-7003, Application for U.S. Government Shipping Documentation/Instructions, when using the clause at FAR 52.242-10, F.o.b. Origin--Government Bills of Lading or Prepaid Postage, or FAR 52.242-11, F.o.b. Origin--Government Bills of Lading or Indicia Mail.

242.1405 Discrepancies incident to shipment of supplies.

242.1470 Demurrage and detention charges.

SUBPART 242.15--CONTRACTOR PERFORMANCE INFORMATION

242.1503 Procedures.

Evaluations should consider any notifications submitted under paragraph (g) of the clause at 252.219-7003, Small, Small Disadvantaged and Women-Owned Small Business Subcontracting Plan (DoD Contracts).

SUBPART 242.70--RESERVED

SUBPART 242.71--VOLUNTARY REFUNDS

242.7100 General.

242.7101 Solicited refunds.

242.7102 Disposition of voluntary refunds.

A contract modification, rather than a check, is the preferred means of effecting a solicited or unsolicited refund transacted before final payment.

SUBPART 242.72--CONTRACTOR MATERIAL MANAGEMENT AND ACCOUNTING SYSTEM

242.7200 Scope of subpart.

This subpart provides policies, procedures, and standards for use in the evaluation of a contractor's material management and accounting system (MMAS).

242.7201 Definitions.

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

242.7202 Policy.

DoD policy is for all contractors to have an MMAS that-

242.7203 MMAS disclosure, demonstration, and maintenance requirements.

242.7204 Responsibilities.

242.7205 Review procedures.

242.7206 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

242.7300 Scope of subpart.

This subpart provides the requirements for conducting a Contractor Insurance/Pension Review (CIPR).

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

242.7500 Scope of subpart.

This subpart provides policies and procedures applicable to contractor accounting systems and related internal controls.

242.7501 Definition.

"Internal controls" means those policies and procedures established by contractor management to provide reasonable assurance that applicable laws and regulations are complied with and that actual and estimated costs are equitably allocated within the accounting system.

242.7502 Policy.

Contractors receiving cost-reimbursement or incentive type contracts, or contracts which provide for progress payments based on costs or on a percentage or stage of completion, shall maintain an accounting system and related internal controls throughout contract performance which provide reasonable assurance that-

242.7503 Procedures.

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