VinceS Posted October 12, 2011 Report Share Posted October 12, 2011 Are there any restrictions on the contract type that I issue to a subcontractor? My prime contract is a CPFF for services. We are bringing on a very small business (KO approved subcontractor) and I know they do not have an approved accounting system. I have searched around and have seen that an "approved" accounting system is not actually required but more of an indicator that the contractor is responsible. The subcontractor has only performed on T&M contracts in the past and would like to stick with that. Do I have any restrictions on issuing them a T&M subcontract? Does FAR 16.1 apply or is that just used for government to prime? Thank you! Link to comment Share on other sites More sharing options...
Don Mansfield Posted October 12, 2011 Report Share Posted October 12, 2011 VinceS, You wrote that your prime contract is CPFF. If so, then it probably contains the clause at FAR 52.244-2, Subcontracts. This clause generally requires the prime to provide advance notification and to seek consent to subcontract from the contracting officer prior to awarding a T&M subcontract. Link to comment Share on other sites More sharing options...
VinceS Posted October 12, 2011 Author Report Share Posted October 12, 2011 Thank you Don. We do have that clause in our prime. I just wanted to be certain that any contract type could be utilized, regardless of the business size of sub or their accounting system standings. Link to comment Share on other sites More sharing options...
Don Mansfield Posted October 12, 2011 Report Share Posted October 12, 2011 VinceS, FYI, the clause expressly prohibits two types of subcontracts: (g) No subcontract or modification thereof placed under this contract shall provide for payment on a cost-plus-a-percentage-of-cost basis, and any fee payable under cost-reimbursement type subcontracts shall not exceed the fee limitations in FAR 15.404-4©(4)(i). Link to comment Share on other sites More sharing options...
VinceS Posted October 12, 2011 Author Report Share Posted October 12, 2011 Thank you for your assistance. I appreciate it!! Link to comment Share on other sites More sharing options...
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