Contract Administration
Also known as: Contract performance, contract management, performance phase
Your role here: Perform, invoice, stay compliant, and build a strong CPARS record
At a Glance
- Phase
- 9 of 10 — the work gets done (usually the longest phase)
- Who leads it
- The contracting officer and the contracting officer's representative (COR)
- What happens
- You perform, invoice, handle mods/options, and are evaluated in CPARS
- You…
- Deliver, comply with the clauses, invoice correctly, and manage the relationship
- Governing authority
- FAR Part 42 (Contract Administration); FAR 52.219-14 (limitations)
What It Is
Contract administration is the phase in which the awarded contract is actually performed and managed, governed largely by FAR Part 42. The contracting officer retains authority to bind the government and issue modifications, while a contracting officer's representative (COR) monitors day-to-day performance but cannot change the contract's scope, price, or terms. During this phase you deliver the supplies or services against the SOW/PWS, submit invoices and are paid (the Prompt Payment clause sets the government's payment clock; payment usually flows by electronic funds transfer through SAM.gov banking data), and process changes: bilateral and unilateral modifications on the SF 30, the Changes clause for in-scope changes, and the exercise of option periods. The government documents your performance in CPARS, creating the past-performance record that follows you to future competitions. For a set-aside, this is also where compliance is measured over time — the limitations on subcontracting (the share of work you and similarly situated subcontractors must self-perform) is assessed over the life of the contract, and your SDVOSB eligibility can be affected by recertification triggers on long-term contracts.
What Happens
- You perform the work and deliver against the statement of work and schedule; the COR monitors and accepts.
- You invoice correctly and are paid under the Prompt Payment terms, typically by EFT using your SAM.gov banking data.
- Modifications (SF 30), in-scope changes under the Changes clause, and option exercises adjust the contract.
- The government rates your performance in CPARS, building your past-performance record.
- Set-aside compliance — the limitations on subcontracting — is tracked, and long-term-contract recertification triggers are watched.
Key Activities
| Activity | What It Means |
|---|---|
| Perform and deliver | Meet the SOW/PWS standards and schedule. The COR inspects and accepts, but only the contracting officer can change the contract. |
| Invoice and get paid | Submit proper invoices; the Prompt Payment clause governs timing and payment is usually by EFT from your SAM.gov banking data. |
| Manage mods and options | Changes come as bilateral/unilateral modifications (SF 30) or under the Changes clause; option periods extend the work if exercised. |
| Earn a strong CPARS rating | Your documented performance becomes the past-performance record that drives future evaluations — manage it actively, not at renewal time. |
What It Means for an SDVOSB
Performance is where an SDVOSB either builds the track record that wins the next contract or creates the compliance problem that costs it the current one. Two SDVOSB-specific obligations run through this phase. First, the limitations on subcontracting: you must self-perform at least the required percentage of the work (with credit for similarly situated subcontractors), and compliance is measured over the performance period — not proposal day — so manage your subcontracting mix throughout. Second, status maintenance: on long-term contracts you generally recertify your SDVOSB status at defined points (around the fifth year and before each option), and events like an ownership change or the loss of the qualifying owner's control can affect eligibility. Meanwhile, treat CPARS as strategic — a strong, well-documented performance rating is the most valuable past-performance asset you can carry into the next competition, so engage with your COR, address issues in real time, and respond to draft CPARS narratives.
What to Do in This Phase
- Deliver to the SOW/PWS standards and route any change request through the contracting officer, not just the COR.
- Track the limitations on subcontracting across the performance period and keep your self-performance above the threshold.
- Submit clean, timely invoices and keep your SAM.gov registration and banking data current so payment is not delayed.
- Engage with CPARS — respond to draft ratings and address performance concerns while you can still fix them.
Watch Out For
- Relying on the COR to authorize changes — only the contracting officer can modify scope, price, or terms.
- Drifting out of compliance with the limitations on subcontracting, which is measured over the whole period of performance.
- Neglecting a long-term-contract recertification trigger or an ownership/control change that can end SDVOSB eligibility.
Run the Numbers
Frequently Asked
How are the limitations on subcontracting measured during performance?
Under 13 CFR 125.6 and FAR 52.219-14, on an SDVOSB set-aside the prime (together with any 'similarly situated entities' — subcontractors that hold the same SDVOSB status) must self-perform at least a set share of the work: for services, at least 50% of the amount paid under the contract must be spent on the prime's own employees (and those of similarly situated subs); for general construction the figure is 15%, and for specialty trade construction 25%. Critically, compliance is assessed over the period of performance, not at the moment of proposal. That means you have to manage your subcontracting mix throughout the contract — a plan that looked compliant at award can drift out of compliance if the work shifts to non-similarly-situated subcontractors.
What is a COR, and can they change my contract?
A contracting officer's representative (COR) is a government employee designated under FAR 1.604 to monitor the technical performance of a contract — inspecting deliverables, tracking progress, and serving as your day-to-day point of contact. But the COR cannot change the contract: only the contracting officer has authority to modify scope, price, schedule, or terms, or to direct work outside the contract. If a COR asks you to do something that looks like a change, get it confirmed by the contracting officer in a written modification before you act. Performing uncompensated 'changes' at a COR's direction, without CO authorization, is a common and costly small-business mistake.
Primary Sources
- FAR 42.302 — Contract administration functions
- FAR Subpart 42.15 — Contractor performance information (CPARS)
- FAR 52.219-14 — Limitations on Subcontracting
Plain-English reference, not legal advice. The phases of a federal acquisition are tailored to each buy, and the FAR is amended from time to time — always read the actual solicitation and confirm the applicable procedures with the contracting officer, and consult qualified counsel for your specific situation before relying on this.
Change log (1)
- LaunchedPublished the federal acquisition lifecycle phases reference covering the ten phases a federal contract moves through — acquisition planning (FAR Subpart 7.1), market research (FAR Part 10), requirements definition (FAR Part 11 / 37.6), the set-aside decision and the rule of two (FAR Subpart 19.5 / 19.1405 / 19.1406), the synopsis and solicitation (FAR Part 5 / Parts 12–15), proposal preparation and submission (FAR 15.208), evaluation and source selection (FAR Subpart 15.3), award and debriefing (FAR Subpart 15.5 / Part 33), contract administration (FAR Part 42), and contract closeout (FAR Subpart 4.8) — each with an at-a-glance quick-facts card, a what-happens list, a key-activities table, an SDVOSB-specific angle, a what-to-do checklist, watch-outs, FAQPage, Article, Dataset, and BreadcrumbList structured data, primary-source FAR citations, and cross-links into the glossary, how-to guides, FAQ, solicitation types, source-selection methods, roles, forms, clauses, protest forums, and the set-aside eligibility, size-standard, win-probability, price-to-win, limitations-on-subcontracting, and subcontracting-goal calculators.