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Zag2009

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Everything posted by Zag2009

  1. Our prime contracts contains FAR 52.222-20, Walsh-Healey Contracts Act. In researching the applicability of the Act to subcontracts, it appears the flow-down requirement is limited to 8(a) subcontractors (see FAR 22.602). Is this interpretation accurate? Or does the Act need to be incorporated into ALL subcontracts for manufacture or furnishing of supplies?
  2. See 22.603 Applicability. "The requirements in 22.602 apply to contracts (including for this purpose, indefinite-delivery contracts, basic ordering agreements, and blanket purchase agreements) and subcontracts under Section 8(a) of the Small Business Act..." My use of the word "flow-down" was misleading when I was referring to the Act's applicability.
  3. Thank you for your response. FAR 52.222-20, W-H Public Contracts Act (Dec 1996) is incorporated into my prime contract. There isn't any language that implies to me that the Act is a required flow-down, unless the prime contractor is acting as a government agent (which we are not) or if the subcontractor is 8(a). I am seeking confirmation that we are not required to include FAR 52.222-20 in our subcontracts, understanding that the basic principles (min wage, working conditions, etc..) are covered by other labor laws applicable to all our subcontracts.
  4. My prime contract contains DEAR 952.209-72, Organizational Conflicts of Interest Alt 1 (1997). If my company (prime contractor) issued a subcontract for design work to its affiliate, under this clause, is the affiliate then barred from being awarded the follow-on construction subcontract? In other words, should this clause be applied at the subcontract level when an affiliate holds a subcontract under the prime contractor. Alternatively, is this clause intended to only apply to contractors (defined as including affiliates) submitting bids on government acquisitions at the prime level? For example, if my company were to submit a solicitation to a DOE acquisition, and my affiliate contributed to development of the SOW for that acquisition, I think it is clear my company is conflicted out from being awarded that contract, but want to ensure the DEAR clause should be applied to limit affiliates from being awarded at the lower-tier subcontractor level under an existing prime contract (as described above). Note my question is specific to application of this specific clause only, not how other FAR/DEAR clauses would apply.
  5. IGCE Development

    Are there any issues/implications that could arise if prime contractor provides proposal details, including cost breakdowns details, to its Contracting Officer at their request to be used in development of the IGCE? The timing of this request is prior to submittal of the proposal by the contractor.
  6. Thank you, Vern. Don't you only have to flow down this clause to subcontracts for advisory assistance work (which in my case it is not)? If it is not for this type of work, does the clause still apply to a prime contractor awarding a subcontract to an affiliate?
  7. CPPC

    If a government prime contractor issues a Time & Material subcontract, can the G&A applied to materials be a fixed/lump sum value, so long as that lump sum value is established and set at the time of award? I understand the four criteria established in Urban Data System v. US, but I am trying to determine if the only way to surely avoid violation is to reconcile the G&A rate applied to materials to actuals at the close of an accounting period.
  8. CPPC

    Yes, I did. We have an approved purchasing system and only require consent at certain thresholds. In the majority of subcontracts issued, we aren't required to go for consent. My main concern is therefore not related to CO approval, but audits.
  9. CPPC

    Retreadfed, your explanation of CPPC contracts matches my understanding. In response to H2H's comment on applicability of FAR clauses to a prime contractor, I've always taken the position that prime contractor's are required to follow what is in their prime contract. Therefore, if my proposed method of allowing for G&A to be reimbursed based on a fixed dollar amount for noncommercial subcontracts doesn't violate our prime contract or any statutory prohibition, what would grant the CO authority to demand that we follow the FAR sections related to T&M contracting? Taken a step further, what would be the purpose of prescribing solicitation provisions and contract clauses if contractors had to follow it in its entirety?
  10. CPPC

    Yes, 52.244-2 is in my prime contract.
  11. CPPC

    Ok I think I have my CPPC question answered. FAR 52.212-4 allows for a fixed dollar amount of G&A to be reimbursed on a pro rata basis under commercial subcontracts. Therefore, this type of arrangement would not violate the statutory prohibition against CPPC arrangements. However, this brings up a second question/clarification. Since our prime contract is Cost Plus Award Fee, neither FAR 52.232-7 nor 52.212-4 are required to be included in our prime since our prime is not T&M or LH. However, you are saying that regardless of what is in our prime contract, we have to follow all FAR clauses? My understanding is that the FAR applies to government personnel, not contractors, and generally contractors are bound by the terms that are in their contracts. As a prime contractor, I don't believe we are required to create a subcontract using the appropriate set of clauses unless our prime contract requires us to do so as mandatory flow-downs. That being said, if a CO leaves out a required clause, a board or court might impose the requirements under the Christian Doctrine.
  12. CPPC

    Cost plus award fee
  13. CPPC

    That is exactly what I mean: fixed dollar amount that does not vary based on actual costs incurred. From the FAR clause you cited, I see that for commercial T&M subcontracts, G&A applied to materials can be a reimbursed on a pro-rata basis based on a fixed amount. However, for non-commercial T&M subcontracts, governed by FAR 52.232-7, indirect rates must be retroactively adjusted after final rates are established, correct? Here's the thing: neither of the T&M FAR clauses referenced are included in our prime contract. Therefore, is there an issue with applying the practices established in FAR 52.212-4 Alt 1 to both commercial and non-commercial subcontracts since neither appear to be a CPPC situation?
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