[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR42.003]

[Page 759]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 42_CONTRACT ADMINISTRATION AND AUDIT SERVICES--Table of Contents
 
Sec.  42.003  Cognizant Federal agency.

    (a) For contractors other than educational institutions and 
nonprofit organizations, the cognizant Federal agency normally will be 
the agency with the largest dollar amount of negotiated contracts, 
including options. For educational institutions and nonprofit 
organizations, the cognizant Federal agency is established according to 
Subsection G.11 of OMB Circular A-21, Cost Principles for Educational 
Institutions, and Attachment A, Subsection E.2, of OMB Circular A-122, 
Cost Principles for Nonprofit Organizations, respectively.
    (b) Once a Federal agency assumes cognizance for a contractor, it 
should remain cognizant for at least 5 years to ensure continuity and 
ease of administration. If, at the end of the 5-year period, another 
agency has the largest dollar amount of negotiated contracts, including 
options, the two agencies shall coordinate and determine which will 
assume cognizance. However, if circumstances warrant it and the affected 
agencies agree, cognizance may transfer prior to the expiration of the 
5-year period.

[63 FR 9062, Feb. 23, 1998]

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