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This document outlines the key aspects of subcontract administration, focusing on the agreements between prime contractors and subcontractors. Subcontractors typically provide services or goods at a fixed price, and the relationships may involve further subcontracting. It emphasizes the importance of clearly defined scopes and documentation to uphold the privity of contract. Additionally, it highlights the buyer's role, including obtaining government consent for subcontracts, ensuring compliance with legal requirements, and fostering inclusion of subcontractors in relevant meetings.
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3.3 Subcontract Administration 1.14.14 – Shawn Hollopeter
Subcontracts • Are negotiated agreements between the prime contractor and the subcontractor. • Subcontractors typically provide a commodity at a fixed price. • Depending on the complexity of the deliverable, subcontractors may further subcontract, creating a hierarchy of subcontractors.
Privity of Contract • The premise is that only parties to contracts should be able to sue to enforce their rights or claim damages as such. • The buyer should therefore exercise care regarding communication with subcontractors. • The buyer needs to ensure that the scope of the subcontract is clearly documented and well understood by both parties.
Buyer’s Role • Should require the prime contractor to receive the governments consent to subcontract in advance of the period of performance. • Ensure that the subcontract includes all legal flow down requirements. • Small Business goals • Ensure that the government obtains appropriate data rights to research or development performed by the subcontractor. • Include the subcontractor in appropriate meetings and reviews.
