42.1104 Surveillance requirements.
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(a) The contract administration office determines the extent of production surveillance on the basis of-
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(1) The criticality (degree of importance to the Government) assigned by the contracting officer (see 42.1105) to the supplies or services; and
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(2) Consideration of the following factors:
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(i) Contract requirements for reporting production progress and performance.
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(ii) The contract performance schedule.
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(iii) The contractor’s production plan.
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(iv) The contractor’s history of contract performance.
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(v) The contractor’s experience with the contract supplies or services.
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(vi) The contractor’s financial capability.
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(vii) Any supplementary written instructions from the contracting office.
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(b) Contracts at or below the simplified acquisition threshold should not normally require production surveillance.
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(c) In planning and conducting surveillance, contract administration offices shall make maximum use of any reliable contractor production control or data management systems.
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(d) In performing surveillance, contract administration office personnel shall avoid any action that may-
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(1) Be inconsistent with any contract requirement; or
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(2) Result in claims of waivers, of changes, or of other contract modifications.
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