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Neil Roberts

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    Providing comments and references for educational purposes. No legal advice is given or intended.

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  1. One law firm's article regarding parent/subsidiary legal liability situations https://fhnylaw.com/the-parent-and-the-subsidiary-when-is-the-former-liable-for-the-actions-of-the-latter/
  2. In response to your questions, my view is that: 1. It does not sound right. 2. A legal entity should not be awarded and should not accept a task order for a contract under which it is not a party. 3. No
  3. I am not aware of any FAR clauses that may be included in a prime contract and specifically mandates that a prime contractor is required to compete a T&M or LH commercial subcontract. However, FAR 52. 244-5 Competition in Subcontracting may be included in some prime contract types. If so, it provides "The Contractor shall select subcontractors (including suppliers) on a competitive basis to the maximum practical extent consistent with the objectives and requirements of the contract." Also, as a practical matter, there are other acquisition requirements (such as CPSR reviews, for example) and business practices that prime's employ which result in competition being the standard practice and requirement unless a noncompetitive source is justified.
  4. Can you explain what a "budget" is contractually? My take is that the usual cost type contract has funding and allowable cost requirements, not a budget.
  5. My experience from the prime contractor side is that this work is best handled as government furnished under your prime contract, which you should request from the contracting officer. This should eliminate the need to issue a subcontract. The other route is to ask the contracting office to delete all mandatory subcontract flowdowns from the prime contract for this work from the depot. This would tend to simplify and eliminate the need to include many requirements in the subcontract. In any event, my experience tells me that the depot may still have some need to have your company agree to certain general requirements included in a standard document the depot uses in such cases.
  6. CACI has small business help available. See https://www.caci.com/small-business-advocacy-office. With respect to your company being an assembler of a dream team from staffing agencies, not sure how to gain attention from CACI because staffing agencies may already be registered with CACI as a potential supplier. If you go to the CACI site on line, you will find information on how to register with them.
  7. I think you should do some market research regarding who are the primes for the field of work you are in. Also, some fairly major players in your line of work may be 1st tier subcontractors that routinely subcontract. If you were in the defense contracting world as a startup, the three top contractors are Lockheed Martin, Raytheon and General Dynamics. The government Small Business Administration can be helpful too.
  8. Major prime contractors generally have a Small Business Administrator/Office responsible for reaching out and helping small businesses. You may wish to contact a few of them for feedback about what you can do to enhance your position in this competitive field.
  9. I can understand how being a newbie you would like to use this as a learning experience, but maybe you should consider getting your learning from the law department? This appears to be a matter of contract law as to who is liable.
  10. Could you please clarify the contract language/clause that is causing your concern? I note that FAR 52.219-9(l), if included in the contract reads as follows: Only subcontracts involving performance in the United States or its outlying areas should be included in these reports with the exception of subcontracts under a contract awarded by the State Department or any other agency that has statutory or regulatory authority to require subcontracting plans for subcontracts performed outside the United States and its outlying areas. I take this to mean that contractor ISR/SSR reports should include subcontracts that "involve" the subcontractor's performance in the United States regardless of whether or not there is other work being performed by the contractor outside the United States or being performed by other subcontractors outside the United States. I believe that if such a subcontract includes performance both in the United States and elsewhere, only the involved performance in the United States seems to be required. I am not familiar with the exact reporting requirement you have in mind regarding contractor reporting funds that go to non-U.S. entities.
  11. Thanks for your view, @ji20874. What if it is a cost type contract?
  12. @ji20874, I am having different thoughts about "performance." I think that if the brooms and brushes were included in the proposed price of the work as direct costs, for example, and the value exceeds the $ threshold for a small business subcontract plan requirement, there should be a small business subcontracting plan for that work (unless the contractor was otherwise exempt) because that portion of the work is performed in the U.S. What are your thoughts?
  13. Yes. Yes. The subs G&A rate only applies to the sub.
  14. You didn't find the "fine print" included in the standard terms of your normal equipment lease?
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