Contract administration is an important aspect of managing contracts with the federal government. It involves various responsibilities such as complying with labor laws, preparing budgets and status reports, performing inspections, and preparing invoices. Both the government and the contractor are responsible for contract administration, with the government acting through its agent, typically the administrative contracting officer (ACO).

Contract administration offices (CAOs) are used by many federal agencies to administer contract functions. These offices assist with tasks such as correcting administrative errors, explaining special clauses and requirements, ensuring on-time performance, inspecting and accepting final products, and ensuring payment.

Contract financing is available to contractors in certain circumstances. This can include progress payments, guaranteed loans, and advance payments. Progress payments are typically based on the costs incurred by the contractor during contract performance. Guaranteed loans are similar to conventional loans, but the government shares in any losses. Advance payments are made by the government to the contractor before the delivery of contracted products or performance of contracted services.

Getting paid is an important part of contract administration. Contractors must prepare proper invoices according to the contract’s instructions. Invoices must include specific information such as the contractor’s name and address, contract number, price of supplies delivered or services performed, and payment terms. Contractors must also support their invoices with approved receiving reports or other government documentation authorizing payment.

Changes to contracts may be necessary during the course of performance. The changes clause allows the contracting officer to make unilateral changes to the contract in areas such as specifications, method of work performance, government-furnished facilities, and acceleration of performance schedule. Contract modifications are written changes to an existing contract and can be made either unilaterally or bilaterally. Constructive changes, also known as de facto changes, are actions or failures to act by the government that cause the contractor to perform additional or different responsibilities.

Government-furnished property may be used by contractors when it results in significant savings, standardization, or expedited contract production. Contractors must segregate this property from their own and maintain adequate control records. The government has the right to inspect and accept products or services delivered under the contract, and contractors must maintain an acceptable system for inspection and keep records of inspections conducted.

Contractor data rights are an important consideration in federal contracting. The government has extensive needs for technical data, but contractors have an economic interest in proprietary data. Contract arrangements include provisions to balance these interests, with the government typically acquiring data rights and contractors protecting proprietary data.

Contractors and subcontractors must retain certain books, records, and documents relating to the contract for a specified period of time. This is important for audits and examination of records by the government. Audits are performed to determine the allowability, allocability, and reasonableness of contract costs claimed by contractors for reimbursement.

The Contract Disputes Act of 1978 provides procedures for asserting and resolving claims by or against contractors. Contractors must submit written claims to the contracting officer, who is responsible for reviewing the claim and issuing a decision. Disputes may be appealed to the appropriate Board of Contract Appeals, and further appeals can be made to the U.S. Court of Appeals or the Supreme Court.

Alternative dispute resolution (ADR) can be used to settle disputes more quickly, rather than going through the court system. ADR procedures may include mediation, fact-finding, minitrials, arbitration, or the use of ombudsmen. Federal agencies are encouraged to use ADR procedures whenever possible.

Termination for convenience and termination for default are options available to the government when a contract needs to be terminated. Termination for convenience allows the government to end the contract for any reason, while termination for default occurs when a contractor fails to meet contract requirements. Proper procedures must be followed for both types of termination.

Contract closeout occurs when a contractor completes a contract. This involves ensuring that all contractual requirements have been fulfilled and that the contractor has complied with all applicable laws. This includes preparing required reports, seeking contract modifications, retaining contractual records, and carrying out other administrative duties.

In conclusion, contract administration is a crucial part of managing contracts with the federal government. It involves various responsibilities and procedures to ensure that both the government and the contractor fulfill their obligations. Proper contract administration can help ensure successful contract performance and resolution of any disputes that may arise.

Words: 727