20 FEB 1992
c . When design deficiency resulting in damage to the Government occurs,
the Contracting Officer with the advice of technical personnel and legal
counsel will consider the extent to which the A-E may be liable. The convening
of an A-E Responsibility Board is not required for each A-E liability case.
However, a Board may be convened, as deemed appropriate by the
d. The preferred method of settling design deficiency problems involving
damages to the Government is for the A-E to resolve the problem directly with
the Construction Contractor. If the A-E cannot or will not resolve the
possible liability with the Construction Contractor, the required contract
modification must be negotiated by the Government with the Construction
e. Recovery of design damages will be pursued in all cases where the A-E
is clearly liable. The Contracting Officer with the advice of technical
personnel and legal counsel will determine whether it is in the best interest
of the Government to pursue cases when liability is unclear or the dollar
amount is small. A factor to be considered in the determination process will
be the cost to litigate the case.
a. CACO - Construction Administrative Contracting Officer, usually the
Resident Officer in Charge of Construction.
b. PCM- Pending Contract Modifications, usually initiated by the
CACO when design deficiency is identified.
c . DSGN - Reason Code for design deficiency PCM. Designer's error or
omission causes additional cost that the Government would have incurred whether
or not design deficiency occurred.
d. EROM - Reason Code for Error or-omission PCM. Designer's error or
omission causes additional cost that the Government would not have incurred
e. COTR - Contracting Officer's Technical Representative serves as the
day-to-day contract representative and liaison for the Contracting Officer in
dealing with technical and contractual matters with the Contractor
(Construction or A-E). This authority is delegated in the appointment letter
issued by the Contracting Officer.
PACNAVFACENGCOM Contracts Department (Code 02):
(1) Code 021 - As Design Contractins Officer. Solicits, awards and
administers design contracts. Upon advice from technical personnel and legal
counsel, determines A-E liability and decides whether to pursue the recovery of
damages or not.