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FAR and DFARS › DFARS Part 242: Contract Administration and Audit Services › Subpart 242.11

DFARS 242.1104 Surveillance requirements.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section tells the contract administration office when and how to perform production surveillance on contractors. It requires surveillance for contractors with Criticality Designator A or B contracts, but not for those with only Criticality Designator C contracts unless the contracting officer requests it. When surveillance is required, the office must assess risk, create a surveillance plan, adjust it for special needs, and monitor progress to spot potential delinquencies.

Applies to: Contract administration offices and contractors with Criticality Designator A, B, or C contracts

What it requires

  • Perform production surveillance on contractors with Criticality Designator A or B contracts.
  • Do not perform production surveillance on contractors with only Criticality Designator C contracts unless specifically requested by the contracting officer.
  • Conduct a periodic risk assessment to determine the degree of production surveillance needed.
  • Develop and modify a production surveillance plan, and monitor contract progress to identify potential delinquencies.

Key terms: Criticality Designator A · Criticality Designator B · Criticality Designator C · production surveillance · risk assessment

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) The cognizant contract administration office (CAO)—

(i) Shall perform production surveillance on all contractors that have Criticality Designator A or B contracts;

(ii) Shall not perform production surveillance on contractors that have only Criticality Designator C contracts, unless specifically requested by the contracting officer; and

(iii) When production surveillance is required, shall—

(A) Conduct a periodic risk assessment of the contractor to determine the degree of production surveillance needed for all contracts awarded to that contractor. The risk assessment shall consider information provided by the contractor and the contracting officer;

(B) Develop a production surveillance plan based on the risk level determined during a risk assessment;

(C) Modify the production surveillance plan to incorporate any special surveillance requirements for individual contracts, including any requirements identified by the contracting officer; and

(D) Monitor contract progress and identify potential contract delinquencies in accordance with the production surveillance plan. Contracts with Criticality Designator C are exempt from this requirement unless specifically requested by the contracting officer.

← 242.803 Disallowing costs after incurrence. · 242.1105 Assignment of criticality designator. →

Rule changes for DFARS Part 242

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

DFARS 242.1104 Surveillance requirements · SpendQuery