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I wasn’t sure where to post this question, but thought this was a good place to start. First, let me describe our situation. · We are a small business with a CPFF contract · All staff members are at the Client site · Contract requires Client approval of all new personnel (sometimes done via resume review – sometimes direct interview of candidate) · All positions require a security clearance and fairly unique skills (i.e., difficult to fill positions) · Contract includes a Consent to Subcontract clause · We have several large business subcontractors · We have had difficulty filling several positions and our large biz subs have failed also Since we (and our subs) cannot fill open positions, we have considered using a staffing agency. A typical headhunter fee is 20% of the first year salary. Paying $20K for a $100K employee is not affordable – much less when you multiply that times 4 or 5 positions. Several staffing companies have offered an alternative approach which they assure us they do for other government contractors. They will employ the candidate for 6-9 months at a certain rate after which the candidate comes to work for our company. During that 6-9 month period, the company earns their fee through the hourly rate – meaning the fee is absorbed as a direct cost, not indirect. The problem is that the new hire is not our employee. Our invoices clearly indicate each employee by name and employer (with appropriate indirects and fees), so the individual’s employer would be clearly visible to the client. We have no desire to do anything underhanded or deceptive - we just need a way to fill these positions. Headhunters have huge databases and recruiting methods that even our large business subs cannot duplicate. So, the question is – can we use a staffing agency in our situation, and if so, how? An obvious answer is to add them as a subcontractor. But that is a process that takes a significant amount of time and effort (and is discouraged by our client – especially approaching the end of the fiscal year). The staffing agencies say they “do this often” with other companies without being considered a subcontractor. They use a Professional Services Agreement (PSA) or Master Services Agreement (MSA) rather than a full-blown subcontract. But I suspect they are filling positions that may be internal company positions or roles on Fixed Price contracts or other contracts that do not require subcontracting consent. There are employees and subcons. Is there a third category that can be utilized in the environment I describe above?
Greetings: I am seeking guidance from the community on this issue. Any assistance you can provide would be appreciated. Background: The prime contract includes FAR 52.244-2 with para (d) modified as follows: (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: Notwithstanding the language contained in paragraph ©, written consent from the Contracting Officer is required prior to entering any subcontract over the simplified acquisition threshold that was not originally proposed. The prime has an approved purchasing system. A subcontract was included in the contract proposal at a value under the Simplified Acquisition Threshold ($140K). The resulting contract states in Section B that Subcontractor ABC is authorized to work under the contract. During execution of the contract, the need arises to modify the subcontract to add value in the amount of $15K resulting in a cumulative subcontract value of $155K. Question: Does the prime need to obtain the Contracting Officer’s consent for the $15K mod? Some argue, “Yes, because the cumulative subcontract value would exceed the SAT,” and some argue, “No, because at no time would a particular subcontract, or modification to a subcontract for which consent is required, exceed the SAT.” Which interpretation, if either, is correct? Thank you for your time.
I have a substantial CPFF Contract awarded to my company at one location. We have a location in a different state (different cage code etc.) that will work on the contract as well via an IOT. The out of state location has an approved purchasing system whereas my location does not. The out of state location is planning to issue a subcontract. Keeping in mind, the contract was issued to my location without the approved purchasing system which ACO gets the notification/consent request? Mine or the one at the other company location. Also, is consent required or advanced notification? (if issued from my purchasing department at my location definitely requires consent.) There's NRE in the subcontract, otherwise its FFP and its in access of 5% contract value.