Guest108830 Posted October 17, 2022 Report Share Posted October 17, 2022 I've read a number of postings concerning intercompany transfers. It appears to always devolve into CAS and price vs cost approach. For a small business not subject to CAS, but having an adequate accounting system, I have a question concerning the document used as between the Offeror and its sister or affiliate or division. Have an ID/IQ capable of Fixed Price as well as Cost Reimbursement (services) Task Orders. Was issued under a competitive Small Business Set-Aside. Fixed Price rates are hard coded into the ID/IQ for 5 years. Proposed under DoD along with a sister company and proposal stated sister (as sub) will perform using the exact cost / pricing as Offeror. FAR 52.244-2 names the sister company by name as an approved sub within the ID/IQ. Question - what is the form of document that should be used as between the Offeror / Prime and its sister company? There is no existing internal policy in place that addresses this. Some internal individuals state a subcontract is necessary, along with all terms and conditions, including FAR / DFAR flowdowns is required. Others say, perhaps a two page document stating, as a policy, inter-organizational transfers will be treated at cost (e.g., no markup) and that's it, no subcontract needed. If a subcontract document is used, find it difficult to believe the Prime would ever have occasion to invoke termination for convenience or default, let alone a myriad of other terms and conditions against its sister, including trying to secure an insurance cert naming Prime as an additional insured, waivers of subrogation, etc., among other. For those internal individuals that say, don't use a subcontract, just create an internal policy and this should be sufficient and the Prime will address the work via the accounting system. While others say, need to use an actual subcontract with stated scope, labor categories, physical invoicing, etc. Is there anything definitive as to what physical document, if any, is necessary to be in place as between the Prime and its sister company per FAR, DFAR, or other authority when dealing with inter-organizational transfers? Thank you. Quote Link to comment Share on other sites More sharing options...
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