I have a couple questions on OTAs and was hoping to get some feedback from the folks on this forum.
Are subcontracts issued under a Prime Contractor’s OTA considered an OTA also? Some folks say we have a standard subcontract because OTAs are only let by the Government to Primes and a Prime cannot let an OTA subcontract to a subcontractor. Others say it’s an OTA subcontract because the subcontract contains OTA flowdown terms and the OTA terms are first in the order of precedence. Additionally, we will be performing 90% of the work under the OTA. Our prime is a small business who was awarded an OTA. Our prime has stated we have a subcontract under an OTA. I don’t see how we can be performing 90% of the work under an OTA arrangement and have our subcontract FAR based while our prime’s contract is not.
Under an OTA, is there anything that prohibits charging direct for the government funded portion of the work (to include fee) and indirect (to IRAD) for a cost sharing contribution? CAS should not apply to an OTA, so assume the rules that you can’t charge both direct and indirect to the same cost objective also do not apply.
Appreciate your thoughts on the above matters.