kdiekemper

Oh and here_to_help you are so correct. It's going to be interesting. ACO's and DCAA have not been responsive to assistance requests in this reqard - so should be interesting. Contractors do not have the same hammer that the Government does. Boy was that an eye opener going from a "Contracting Officer" to contractor employee.

To answer the question on what's in our subcontracts. We include requirements from the allowable cost and payment clause to include the submission of the indirect cost proposal in all cost reimbursable subcontracts. The issue we are continually wrestling with is even if we do a review of the ICP and determine rates or we review the accounting system and using the guidance from DCAA on accounting system reviews and determine adequacy we can still be hung out to dry. It's real easy if the subcontractor has cost reimbursable prime contracts. Not so easy if they don't. Competing contractors don't want to open their books for another contractor to do a review. So to contract or not and how to protect the company and still comply with customer requirements. No easy answer but thanks for the discussion.

We do determine adequacy either through a previous DCAA review or through our own review. But the issue is really is the responsibility for the ICP. DCAA says its the prime contractor unless they have previously done one. Yet the FAR speaks to agency. Is the prime the CFAO for a sub?

We as a prime contractor have been wrestling with who is responsible for reviewing a subcontractors final indirect cost rate proposal and determining the rates. It's an easy thing if the subcontractor has an approved accounting system but what if he doesn't and you are awarding a T&M subcontract. FAR 42.202(e)(2) states "The prime contractor is responsible for managing it subcontracts". Does this mean every function described in 42.302(a)? Further when you get to T&M subcontracts there is no requirement to flow down the T&M payment clause 52.232-7 nor is there a requirement to flow down the allowable cost and payment clause 52.216-7. However, a purdent contractor should include some of the requirements in these clauses in their T&M subcontract. Vern and Don have said contractors do not have to comply with FAR in awarding subcontracts except when clauses specifically contain a flow down requirement. I hope I haven't misinterpreted this. DCAA wants to hold prime contractor's feet to the fire on everything and some ACO's want us to follow the FAR to the letter. Drives me nuts and forgive me for rambling. The real question is how do you determine who looks at a subcontractor's final indirect cost rate proposal? FAR 42.703-1(a) says "A single agency (see 42.705-1) shall be responsible for establishing final indirect cost rates for each business unit." Is it only the government based on the matrix of cognizance within DCMA and DCAA? Is the prime responsible, and if so when? What if the subcontractor will not provide access to his books? Who does it then?