a. DESC has procurement responsibility for all petroleum contracts.
responsibility for bulk petroleum products is retained by DESC. However, with the DESC Commander's
approval, the DESC-P may assign contract administration functions to another DLA activity by designating the
activity as the CAO on the contact. DESC assigns a KO to each contact Additionally, DESC may designate the
requiring service to provide certain functions.
b. The KO is the central coordinator for contract administrative matters. The KO may delegate contact
administration functions to DERs. The KO also appoints COR. The KO must ensure that the COR has
qualification and experience equivalent to the authority which the COR will exercise. There are certain
responsibilities that the KO cannot delegate. They are:
(1) Changes to the contact that affect delivery schedules, specifications, quantities, prices, or changes
in extent or nature of service.
(2) Resolve issues of contractor performance.
(3) Resolve matters requiring formal recognition by contact, contact change, or findings and
(4) Resolve disputes between contractor and the U.S. Government.
(5) Resolve complaints by contractors or military services.
c. CAOs provide contact administration services within designated geographic areas.
d. The COR monitors contractor performance and initiates corrective action as authorized in his letter of
appointment. He is an "on site" representative of the KO.
e. Military services may be designated by DESC to be responsible for:
(1) Placing orders and requests for orders and services.
(2) Performing quality surveillance at terminals.
(3) Performing other functions as required in the contact or designated by DESC.
f. DOD components/Federal agencies are authorized to local purchase petroleum products under the
Annual Requirements (For example petroleum price fluctuation).
PC&S contract bulletins.