This guidance addresses issues pertinent to both preaward and postaward subcontracts. This guidance addresses issues pertinent to the preaward and postaward review of subcontracts. There is essentially no relationship between the Government and its subcontractors. The prime contractor is selected for its technical and management abilities, including the right to manage the contract and subcontractors used in the performance of the contract.
Prime contractors are responsible for planning, awarding, and administering subcontracts.
However, COs play a key role in subcontract oversight, since they are responsible for the overall prime contract price and performance. COs are responsible for assessing the need for subcontracts, and the additional cost of subcontracting before granting consent. Before granting consent to a subcontract, COs review the adequacy of the prime contractor's cost and price analysis, and determine whether the proposed subcontract costs are realistic for the work to be done. Finally this PPN addresses consenting to subcontracts. COs should refer to FAR Part 44 and this PPN for policies and procedures before granting consent to subcontract.