Source: https://gcexperts.com/gc-law/fars/part-44-subcontracting-policies-and-procedures/
Timestamp: 2020-07-05 13:16:28
Document Index: 756726399

Matched Legal Cases: ['art 44', 'art 44', 'art 44', 'art 44', 'art 44', 'art 44', 'art.\n44', 'art 8', 'art 9', 'art 12', 'art 12', 'art 43', 'art 45']

Part 44 - Subcontracting Policies and Procedures - Government Construction Experts
Part 44 – Subcontracting Policies and Procedures
44.000 Scope of part.
Subpart 44.1 – General
44.101 Definitions.
Subpart 44.2 – Consent to Subcontracts
Subpart 44.3 – Contractors’ Purchasing Systems Reviews
Subpart 44.4 – Subcontracts for Commercial Items and Commercial Components
44.400 Scope of subpart.
44.401 Applicability.
44.402 Policy requirements.
44.403 Contract clause.
(a)If the contractor has an approved purchasing system, consent is required for subcontracts specifically identified by the contracting officer in the subcontracts clause of the contract. The contracting officer may require consent to subcontract if the contracting officer has determined that an individual consent action is required to protect the Government adequately because of the subcontract type, complexity, or value, or because the subcontract needs special surveillance. These can be subcontracts for critical systems, subsystems, components, or services. Subcontracts may be identified by subcontract number or by class of items (e.g., subcontracts for engines on a prime contract for air-frames).
(b)If the contractor does not have an approved purchasing system, consent to subcontract is required for cost-reimbursement, time-and-materials, labor-hour, or letter contracts, and also for unpriced actions (including unpriced modifications and unpriced delivery orders) under fixed-price contracts that exceed the simplified acquisition threshold, for-
(1)Is the decision to subcontract consistent with the contractor’s approved make-or-buy program, if any (see 15.407-2)?
(2)Is the subcontract for special test equipment, equipment or real property that are available from Government sources?
(3)Is the selection of the particular supplies, equipment, or services technically justified?
(4) Has the contractor complied with the prime contract requirements regarding-
(ii) Purchase from nonprofit agencies designated by the Committee for Purchase From People Who Are Blind or Severely Disabled 41 U.S.C.8504(see part 8)?
(9)Is the proposed subcontract type appropriate for the risks involved and consistent with current policy?
(13)Is the proposed subcontractor listed as excluded in the System for Award Management (see subpart 9.4)?
(b) Particularly careful and thorough consideration under paragraph (a) of this section is necessary when-
(b) Contracting officers shall not consent to-
(1) The contracting officer shall insert the clause at 52.244-2, Subcontracts, in solicitations and contracts when contemplating-
(i)A cost-reimbursement contract;
(ii)A letter contract that exceeds the simplified acquisition threshold;
(iii)A fixed-price contract that exceeds the simplified acquisition threshold under which unpriced contract actions (including unpriced modifications or unpriced delivery orders) are anticipated;
(iv)A time-and-materials contract that exceeds the simplified acquisition threshold; or
(v)A labor-hour contract that exceeds the simplified acquisition threshold.
(2)If a cost-reimbursement contract is contemplated, for civilian agencies other than the Coast Guard and the National Aeronautics and Space Administration, the contracting officer shall use the clause with its Alternate I.
(3) Use of this clause is not required in-
(c) The contracting officer shall, when contracting by negotiation, insert the clause at 52.244-5, Competition in Subcontracting, in solicitations and contracts when the contract amount is expected to exceed the simplified acquisition threshold, unless-
(1)A firm-fixed-price contract, awarded on the basis of adequate price competition or whose prices are set by law or regulation, is contemplated; or
(2)A time-and-materials, labor-hour, or architect-engineer contract is contemplated.
(b) Once an initial determination has been made under paragraph (a) of this section, at least every threeyears the ACO shall determine whether a purchasing system review is necessary. If necessary, the cognizant contract administration office will conduct a purchasing system review.
A CPSR requires an evaluation of the contractor’s purchasing system. Unless segregation of subcontracts is impracticable, this evaluation shall not include subcontracts awarded by the contractor exclusively in support of Government contracts that are competitively awarded firm-fixed-price, competitively awarded fixed-price with economic price adjustment, or awarded for commercial items pursuant to part 12 . The considerations listed in 44.202-2 for consent evaluation of particular subcontracts also shall be used to evaluate the contractor’s purchasing system, including the contractor’s policies, procedures, and performance under that system. Special attention shall be given to-
The cognizant ACO is responsible for granting, withholding, or withdrawing approval of a contractor’s purchasing system. The ACO shall-
(a) The notification granting system approval shall include-
(3)A statement that system approval-
(b)In exceptional circumstances, consent to certain subcontracts or classes of subcontracts may be required even though the contractor’s purchasing system has been approved. The system approval notification shall identify the class or classes of subcontracts requiring consent. Reasons for selecting the subcontracts include the fact that a CPSR or continuing surveillance has revealed sufficient weaknesses in a particular area of subcontracting to warrant special attention by the ACO.
(a) The ACO shall withhold or withdraw approval of a contractor’s purchasing system when there are major weaknesses or when the contractor is unable to provide sufficient information upon which to make an affirmative determination. The ACO may withdraw approval at any time on the basis of a determination that there has been a deterioration of the contractor’s purchasing system or to protect the Government’s interest. Approval shall be withheld or withdrawn when there is a recurring noncompliance with requirements, including but not limited to-
The ACO shall distribute copies of CPSR reports; notifications granting, withholding, or withdrawing system approval; and Government recommendations for improvement of an approved system, including the contractor’s response, to at least-
This subpart applies to all contracts and subcontracts. For the purpose of this subpart, the term “subcontract” has the same meaning as defined in part 12 .
(1)Be required to incorporate commercial items or nondevelopmental items as components of items delivered to the Government; and
(2) Not be required to apply to any of its divisions, subsidiaries, affiliates, subcontractors or suppliers that are furnishing commercial items or commercial components any clause, except those-
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