>Is this handled by MS or a contractor?

My "guess" is that it's in a central MS database because it needs to be incremented by both online and phone activation.

>
>Is the number readily available or does one have to hunt for it.

Which number? The number to call or the number of times the product has been activated.

>
>If by contractor, by the way, and they are snarly or botch things up, it's not a MS problem, right?

You can complain to MS about it. There is usually some type of performance clause in the contract..usually something measurable. But, if MS were to get enough complaints about being snarly or botching things up, it could affect the contract.