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JW84

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About JW84

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  1. Would love to -- my view is similar, that we are in a "because I said so" scenario here, and may need to be responsive for that reason solely. But what about the DCMA manual I posted, I trust your judgment in addition to Vern's? It is my primary concern, as its table 1 on page 9 seems to follow either/or thinking on the key excerpt I noted.
  2. To me, the comma in the subject clause isn't the lynchpin, but the words "and only if" -- if it were an either/or test, why would the phrase "or if" not simply be used? (B ) When this clause is included in a fixed-price type contract, consent to subcontract is required only on unpriced contract actions (including unpriced modifications or unpriced delivery orders), and only if required in accordance with paragraph (c ) or (d) of this clause.
  3. Vern, I am most troubled by this DCMA manual which I found during my research and seems to disagree with me and describe an either/or application (http://contractingacademy.gatech.edu/wp-content/uploads/2012/09/Consent-to-Subcontract-Instructions-DCMA-INST-143-03.19.2013.pdf). My instinct was, as you said, that the proper interpretation was quite straightforward, and indicated a two-part test -- admittedly, somewhat based on the placement of that comma, but also rooted in FAR 44-201-1, which phrases it similarly, but more in line with my thinking: "b) If the contractor does not have an approved purchasing system, consent to subcontract is required for [...] unpriced actions (including unpriced modifications and unpriced delivery orders) under fixed-price contracts that exceed the simplified acquisition threshold, for- (1) Cost-reimbursement, time-and-materials, or labor-hour subcontracts; and (2) Fixed-price subcontracts that exceed-(i) For the Department of Defense, the Coast Guard, and the National Aeronautics and Space Administration, the greater of the simplified acquisition threshold or 5 percent of the total estimated cost of the contract; or(ii) For civilian agencies other than the Coast Guard and the National Aeronautics and Space Administration, either the simplified acquisition threshold or 5 percent of the total estimated cost of the contract. I resist the general notion that the Government expects to give consent to subcontract in FFP scenarios, simply because the prime contract may include the clause, or the task order includes separate cost reimbursable ODC CLINs. But then I see FAR 44.201-2 which does not seem to include the caveat for unpriced actions, leading me to believe that apparently notification is necessary, but perhaps not consent?
  4. Task order RFP released under existing Army IDIQ. Prime contractor insisting that we (the sub, without an approved purch sys) prepare consent to subcontract packages even in a purely FFP scenario claiming the word "and" in paragraph b below is intended to be an "either/or" test. I disagree, and see it as a two-part test -- meaning, if the first part is not satisfied (i.e. you're not dealing with an unpriced contract action), then FFP actions are otherwise exempt regardless of value and c and d are irrelevant. Am I wrong? I find interpretations on both sides and prescriptions in FAR 44 that are less than illuminating. 52.244-2 Subcontracts. As prescribed in 44.204(a)(1), insert the following clause: Subcontracts (OCT 2010) (a) Definitions. As used in this clause— Approved purchasing system means a Contractor's purchasing system that has been reviewed and approved in accordance with Part 44 of the Federal Acquisition Regulation (FAR). Consent to subcontract means the Contracting Officer's written consent for the Contractor to enter into a particular subcontract. Subcontract means any contract, as defined in FAR Subpart 2.1, entered into by a subcontractor to furnish supplies or services for performance of the prime contract or a subcontract. It includes, but is not limited to, purchase orders, and changes and modifications to purchase orders. (B ) When this clause is included in a fixed-price type contract, consent to subcontract is required only on unpriced contract actions (including unpriced modifications or unpriced delivery orders), and only if required in accordance with paragraph (c ) or (d) of this clause. (c ) If the Contractor does not have an approved purchasing system, consent to subcontract is required for any subcontract that— (1) Is of the cost-reimbursement, time-and-materials, or labor-hour type; or (2) Is fixed-price and exceeds— (i) For a contract awarded by the Department of Defense, the Coast Guard, or the National Aeronautics and Space Administration, the greater of the simplified acquisition threshold or 5 percent of the total estimated cost of the contract; or (ii) For a contract awarded by a civilian agency other than the Coast Guard and the National Aeronautics and Space Administration, either the simplified acquisition threshold or 5 percent of the total estimated cost of the contract. (d) If the Contractor has an approved purchasing system, the Contractor nevertheless shall obtain the Contracting Officer's written consent before placing the following subcontracts: (e) (1) The Contractor shall notify the Contracting Officer reasonably in advance of placing any subcontract or modification thereof for which consent is required under paragraph (B ), ©, or (d) of this clause, including the following information: (i) A description of the supplies or services to be subcontracted. (ii) Identification of the type of subcontract to be used. (iii) Identification of the proposed subcontractor. (iv) The proposed subcontract price. (v) The subcontractor's current, complete, and accurate certified cost or pricing data and Certificate of Current Cost or Pricing Data, if required by other contract provisions. (vi) The subcontractor's Disclosure Statement or Certificate relating to Cost Accounting Standards when such data are required by other provisions of this contract. (vii) A negotiation memorandum reflecting— (A) The principal elements of the subcontract price negotiations; (B ) The most significant considerations controlling establishment of initial or revised prices; © The reason certified cost or pricing data were or were not required; (D) The extent, if any, to which the Contractor did not rely on the subcontractor's certified cost or pricing data in determining the price objective and in negotiating the final price; (E) The extent to which it was recognized in the negotiation that the subcontractor's certified cost or pricing data were not accurate, complete, or current; the action taken by the Contractor and the subcontractor; and the effect of any such defective data on the total price negotiated; (F) The reasons for any significant difference between the Contractor's price objective and the price negotiated; and (G) A complete explanation of the incentive fee or profit plan when incentives are used. The explanation shall identify each critical performance element, management decisions used to quantify each incentive element, reasons for the incentives, and a summary of all trade-off possibilities considered. (2) The Contractor is not required to notify the Contracting Officer in advance of entering into any subcontract for which consent is not required under paragraph (B ), (c ), or (d) of this clause. (f) Unless the consent or approval specifically provides otherwise, neither consent by the Contracting Officer to any subcontract nor approval of the Contractor's purchasing system shall constitute a determination— (1) Of the acceptability of any subcontract terms or conditions; (2) Of the allowability of any cost under this contract; or (3) To relieve the Contractor of any responsibility for performing this contract. (g) No subcontract or modification thereof placed under this contract shall provide for payment on a cost-plus-a-percentage-of-cost basis, and any fee payable under cost-reimbursement type subcontracts shall not exceed the fee limitations in FAR 15.404-4(c )(4)(i). (h) The Contractor shall give the Contracting Officer immediate written notice of any action or suit filed and prompt notice of any claim made against the Contractor by any subcontractor or vendor that, in the opinion of the Contractor, may result in litigation related in any way to this contract, with respect to which the Contractor may be entitled to reimbursement from the Government. (i) The Government reserves the right to review the Contractor's purchasing system as set forth in FAR Subpart 44.3. (j) Paragraphs © and (e) of this clause do not apply to the following subcontracts, which were evaluated during negotiations: (End of clause)
  5. Good afternoon everyone -- longtime reader, first time poster. At the risk of a good smack by Vern, I need a gut check from the group on the topic that follows. My company holds a prime seat on a multiple award IDIQ under which FFP task orders for IT and infrastructure solutions (commercial items) are competed among the 25 primes. In all cases, however, the Government is mandating the use of a separate MA IDIQ program for all subordinate purchases of materials thereunder, regardless of whether or not we can show an ability to procure that same product at a lower price via our typical commercial channels. The mandated use immediately disadvantages the Government, and in my view, circumvents authentic competition. I've written a white paper attempting to dissuade the Government from this mandate, and can elaborate as needed, however, thought I would begin a topic here to get initial feedback. Many thanks in advance!
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