Sun$hine

The contract is a FFP; no this is not a construction contract. The "discussions" I've been pulled into [read: arguments between the PM and Supply Chain] are that we (Prime Supply Chain) should have been aware of the 2nd tier sub's violations. We audit our subcontractor but I didn't think we would or should have any authority to audit our subcontractor's subcontractor. That makes sense that the Prime can hold our subcontractor accountable to recoup the expenses. Everything rolls somewhere, does it not? Thank you!

The company I work for is Prime on a government contract, our subcontractor then subbed out part of their work - business as usual, right? Unfortunately, we've just been notified that the 2nd tier sub wasn't paying their employees. I'm a wet-behind the ears newbie to the world of Subcontract Management. I'm looking for some knowledge and understanding as to why the Prime would be held accountable for paying these employees, what our recourse is, how does FAR 42.202(e)(2) play into this equation and anything else I may be missing.