Administrative Contracting Officer (ACO)

Definition

The Administrative Contracting Officer (ACO) is a contracting officer with a specific warrant to administer contracts after they have been awarded. While a Procuring Contracting Officer (PCO) issues the original award, the ACO takes over the day-to-day administration: approving modifications, reviewing invoices, enforcing terms and conditions, and resolving performance issues. On major defense contracts, the ACO is typically assigned by DCMA. The ACO has authority to bind the government within the scope of their warrant, making them the single most important government point of contact during performance.

Why It Matters

Treating the ACO as an ally, not an obstacle, is central to long-term success on federal contracts. ACOs can approve change orders, accelerate payment, and support follow-on work. They also have the authority to issue cure notices and terminations. Knowing who your ACO is, their warrant limits, and their documented preferences for interim deliverables and invoicing formats prevents costly misunderstandings and builds the kind of relationship that leads to strong CPARS ratings.

Example

A DoW prime wins a $42M cost-plus-fixed-fee contract. DCMA assigns an ACO in the contractor's region. Six months in, the contractor discovers that a software license cost needs to be added to the baseline. Instead of stopping work, the PM submits a Request for Equitable Adjustment to the ACO, who negotiates, approves a $180K modification within three weeks, and keeps performance on track.

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