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FAR and DFARS › FAR Part 42: Contract Administration and Audit Services › Subpart 42.6

FAR 42.603 Responsibilities.

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 describes the responsibilities of the Corporate Administrative Contracting Officer (CACO), who handles contract administration functions on a corporate-wide basis. It matters to contractors because the CACO is the official who determines final indirect cost rates for cost-reimbursement contracts and administers Cost Accounting Standards at the corporate level.

Applies to: The CACO (Corporate Administrative Contracting Officer) and contractors under cost-reimbursement contracts

What it requires

  • The CACO must fully utilize the responsible contract audit agency's financial and advisory accounting services
  • The CACO must keep cognizant ACOs and auditors informed of important matters under consideration and determinations made
  • The CACO must solicit their advice and participation as appropriate

Key terms: CACO · final indirect cost rates · cost-reimbursement contracts · advance agreements · Cost Accounting Standards (CAS)

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

The text

(a) The CACO shall perform, on a corporate-wide basis, the contract administration functions as designated by the responsible agency. Typical CACO functions include (1) the determination of final indirect cost rates for cost-reimbursement contracts, (2) establishment of advance agreements or recommendations on corporate/home office expense allocations, and (3) administration of Cost Accounting Standards (CAS) applicable to corporate-level and corporate-directed accounting practices.

(b) The CACO shall—

(1) Fully utilize the responsible contract audit agency financial and advisory accounting services, including (i) advice regarding the acceptability of corporate-wide policies and (ii) advisory audit reports;

(2) Keep cognizant ACO's and auditors informed of important matters under consideration and determinations made; and

(3) Solicit their advice and participation as appropriate.

← 42.602 Assignment and location. · 42.700 Scope of subpart. →

Rule changes for FAR Part 42

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

FAR 42.603 Responsibilities · SpendQuery