Which activity is essential for effective contract oversight by a COR?

Monitoring contractor performance is essential for effective contract oversight by a COR because it ensures that the contractor is delivering the services or products as specified in the contract. This activity involves regularly reviewing and evaluating the contractor's work to confirm that it meets the required standards and contractual obligations.

Proper oversight includes tracking progress, assessing quality, and identifying any issues or delays that may arise during the performance period. By actively monitoring performance, the COR can provide timely feedback to the contractor, implement corrective actions when necessary, and ensure that the work aligns with the project's objectives. This proactive approach helps in maintaining accountability and can significantly contribute to the overall success of the contract. Other tasks, such as setting budgets or drafting new contracts, while important, do not directly pertain to the ongoing oversight and management of a contract that a COR is responsible for during its execution.