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RedHorse74

Audit Rights of Commercial Item Subcontractors

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We are a prime contractor reviewing a solicitation and negotiating a subcontract with one of our subcontractors. The initial intent was to flow-down the FAR provisions from the solicitation to the subcontractor.

This subcontractor, being more savvy than most, has asked for the removal of several of the FAR provisions including FAR 52.215-2. Their reason for making this claim is that they are a commercial contractor providing commercial item to the prime under this solicitation. They have provided more than adequate proof of commerciality.

My question is whether FAR 52.215-2 would apply to the subcontractor, if they truly are providing commercial items under this contract? My reading of 52.215-2(g) indicates as such, but the subcontractor is disputing this. In addition, the subcontract value is above the simplified acquisition threshold of $100K, but well below any CAS requirements of $650K. Any thoughts?

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We are a prime contractor reviewing a solicitation and negotiating a subcontract with one of our subcontractors. The initial intent was to flow-down the FAR provisions from the solicitation to the subcontractor.

This subcontractor, being more savvy than most, has asked for the removal of several of the FAR provisions including FAR 52.215-2. Their reason for making this claim is that they are a commercial contractor providing commercial item to the prime under this solicitation. They have provided more than adequate proof of commerciality.

My question is whether FAR 52.215-2 would apply to the subcontractor, if they truly are providing commercial items under this contract? My reading of 52.215-2(g) indicates as such, but the subcontractor is disputing this. In addition, the subcontract value is above the simplified acquisition threshold of $100K, but well below any CAS requirements of $650K. Any thoughts?

If you read the prescription for the clause at FAR 15.209(B), if the item is a Commercial item, then it appears that the clause at 52.215-2 does not apply unless per 15.209(B)(2) "When using funds appropriated or otherwise made available by the American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5)".

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The refernce to item b in the prescription at 15.209 is coming through on the post as a smiley face...sorry.

The smiley is a flaw in this software. I have yet to remedy it. However, assume the citation is 15.209( b )(2). If you add a space between the front of the paren. and the letter and after the letter and between the end of the paren, you will see the letter as I have shown.

Its a workaround courtesy of over 30 years as a bureaucrat.

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