[Code of Federal Regulations]

[Title 48, Volume 4]

[Revised as of October 1, 2006]

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

[CITE: 48CFR342.7002]



[Page 68-70]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                  CHAPTER 3--HEALTH AND HUMAN SERVICES

 

PART 342_CONTRACT ADMINISTRATION--Table of Contents

 

                   Subpart 342.70_Contract Monitoring

 

Sec. 342.7002  Contract monitoring responsibilities.



    (a) Upon execution of the contract, the mutual obligations of the 

Government and the contractor are established by, and limited to, the 

written stipulations in the contract. Unless authorized by the 

contracting officer, HHS personnel shall not direct or request the 

contractor to assume any obligation or take any actions not specifically 

required by the contract. Only the contracting officer may impose a 

requirement which will result in a change to the contract. All contract 

changes must be directed in writing or confirmed in writing by the 

contracting officer.

    (b) The contracting officer is responsible for assuring compliance 

with all terms of the contract, especially the statutory, legal, 

business, and regulatory provisions. Whether or not a postaward 

conference is held, the contracting officer shall inform the contractor 

by letter (if not already stipulated by contract provisions) of the 

authorities and responsibilities of the Government personnel with whom 

the contractor will be dealing throughout the life of the contract.

    (c) The contracting officer must depend on program, technical, and 

other personnel for assistance and advice in monitoring the contractor's 

performance, and in other areas of postaward administration. The 

contracting officer must assure that responsibilities assigned to these 

personnel are understood and carried out. The individual roles and 

corresponding responsibilities typically involve, but are not limited 

to, the following:

    (1) The role of program and technical personnel in monitoring the 

contract to assist or advise the contracting officer (or act as his/her 

representative when so designated by the contracting officer) in 

activities such as:



[[Page 69]]



    (i) Providing technical monitoring during contract performance, and 

issuing letters to the contractor and contracting officer relating to 

delivery, acceptance, or rejection in accordance with the terms of the 

contract;

    (ii) Assessing contractor performance, including inspection and 

testing of products and evaluation of reports and data;

    (iii) Recommending necessary changes to the schedule of work and 

period of performance in order to accomplish the objectives of the 

contract. This shall be accomplished by a written request to the 

contracting officer, together with an appropriate justification and 

funds availability citation;

    (iv) Reviewing invoices/vouchers and recommending approval/

disapproval action by the contracting officer, to include comments 

regarding anything unusual discovered in the review;

    (v) Reviewing and recommending approval or disapproval of 

subcontractors, overtime, travel, and key personnel changes; and

    (vi) Participating, as necessary, in various phases of the contract 

closeout process.

    (2) The role of the project officer in performing required aspects 

of the contract monitoring process. In addition to those applicable 

activities set forth in paragraph (c)(1) of this section, the project 

officer shall:

    (i) Submit periodic reports to the contracting officer that 

concisely explain the status of the contract, and include recommended 

actions for any problems reported. Provide the contracting officer with 

written notification of evaluation and approval/disapproval of contract 

deliverables and of completion of tasks or phases. The contracting 

officer will, in turn, provide the contractor with written notification 

of approval or disapproval unless the responsibility has been delegated 

by the contracting officer, in which case the person responsible for 

such action will notify the contractor and provide a copy to the 

contracting officer for inclusion in the contract file;

    (ii) Monitor the technical aspects of the contractor's business and 

technical progress, identify existing and potential problems that 

threaten performance, and immediately inform the contracting officer of 

deviations from contract objectives, or from any technical or delivery 

requirements, so that remedial measures may be instituted accordingly;

    (iii) Provide immediate notification to the head of the program 

office responsible for the program whenever it is determined that 

program objectives are not being met, together with specific 

recommendations of action to be taken. A copy of the project officer's 

report and recommendation shall be transmitted to the contracting 

officer for appropriate action;

    (iv) Submit, within 120 days after contract completion, a final 

assessment report to the contracting officer. The report should include 

analysis of the contractor's performance, including the contract and 

program objectives achieved and missed. A copy of the final assessment 

report shall be forwarded to the head of the program office responsible 

for the program for management review and follow-up, as necessary; and

    (v) Accompany and/or provide, when requested, technical support to 

the HHS auditor in the conduct of floor checks.

    (3) The role of the contract administrator, auditor, cost analyst, 

and property administrator in assisting or advising the contracting 

officer in postaward administration activities such as:

    (i) Evaluation of contractor systems and procedures, to include 

accounting policies and procedures, purchasing policies and practices, 

property accounting and control, wage and salary plans and rate 

structures, personnel policies and practices, etc.;

    (ii) Processing of disputes under the Disputes clause and any 

resultant appeals;

    (iii) Modification or termination of the contract; and

    (iv) Determination of the allowability of cost charges to incentive 

or cost-reimbursement type contracts and progress payments under fixed-

price contracts. This is especially important when award is made to new 

organizations or those with financial weaknesses.



[[Page 70]]



    (d) The contracting officer is responsible for assuring that 

contractor performance and contract monitoring are carried out in 

conformance with contract provisions. If performance is not satisfactory 

or if problems are anticipated, it is essential that the contracting 

officer take immediate action to protect the Government's rights under 

the contract. The contracting officer shall notify his/her immediate 

supervisor of problems that cannot be resolved within contract 

limitations and whenever contract or program objectives are not met. The 

notification shall include a statement of action being take by the 

contracting officer.