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Subcontracting outside US


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Hi Everyone,

I have a situation that was brought up in a meeting at work, and I was wondering if anyone could help me out.

We are a software company that builds custom software for US agencies through Government contracts. Due to the highly technical subject material of some of our work, we often struggle to find suitable employees that can handle the work. Sites like Odesk.com and Elance.com have popped up and offer a huge list of potential employees/subcontractors. However, a majority of those candidates are outside the US.

We were wondering if we would be able to subcontract out some of the work on a given contract to a person through Odesk.com and the like?

Are there any FAR clauses that would keep us from subcontracting out some software development to a person who resides outside the US?

Thank you for your time and suggestions.

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Guest Vern Edwards

The only FAR contract clauses that might govern with whom you can subcontract are FAR 52.209-6, Protecting the Government?s Interest When Subcontracting with Contractors Debarred, Suspended, or Proposed for Debarment, and 52.244-2, Subcontracts. The first thing for you to do is see if either or both of those clauses are in your contract and, if so, see what they say and how they might apply in your case.

Next, see if there is any other clause in the contract that might govern with whom you can subcontract.

Finally, if the work you are doing is sensitive, I suggest that you ask the contracting officer if the agency would have any objection. If he or she tells you no, I suggest that you confirm your communication in writing.

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The only FAR contract clauses that might govern with whom you can subcontract are FAR 52.209-6, Protecting the Government?s Interest When Subcontracting with Contractors Debarred, Suspended, or Proposed for Debarment, and 52.244-2, Subcontracts. The first thing for you to do is see if either or both of those clauses are in your contract and, if so, see what they say and how they might apply in your case.

Next, see if there is any other clause in the contract that might govern with whom you can subcontract.

Finally, if the work you are doing is sensitive, I suggest that you ask the contracting officer if the agency would have any objection. If he or she tells you no, I suggest that you confirm your communication in writing.

Thank you Mr. Edwards. We do have the 52.244-2 in our IDIQ Contract, and from the looks of it, we just need to notify the CO if we plan to do this for a Time and Materials task order.

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Thank you Mr. Edwards. We do have the 52.244-2 in our IDIQ Contract, and from the looks of it, we just need to notify the CO if we plan to do this for a Time and Materials task order.

Don't forget the consent requirement under 52.244-2 if you do not have an approved purchasing system. Also, it may be possible that the development you are seeking may fall under the International Trafficing in Arms (ITAR) regulations. You need to be senstitive to this possibility.

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Guest Vern Edwards

If you hace any doubt about the propriety of your choice of subcontractors, I believe that you would be wise to discuss it with the CO.

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The only FAR contract clauses that might govern with whom you can subcontract are FAR 52.209-6, Protecting the Government?s Interest When Subcontracting with Contractors Debarred, Suspended, or Proposed for Debarment, and 52.244-2, Subcontracts. The first thing for you to do is see if either or both of those clauses are in your contract and, if so, see what they say and how they might apply in your case.

Next, see if there is any other clause in the contract that might govern with whom you can subcontract.

Finally, if the work you are doing is sensitive, I suggest that you ask the contracting officer if the agency would have any objection. If he or she tells you no, I suggest that you confirm your communication in writing.

If you have a contract with a DoD office, look for these DFARS clauses: 252.209-7001, 252.209-7002, and 252.209-7004.

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