[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR42.003]



[Page 783]

 

            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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