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pricelesspearl

Limits on awarding work to affiliates

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Is anyone aware of any limits placed on how much work an affiliate can perform on a contract when the parent company is the actual contract holder?  I do not believe the Excessive Pass Through clause would apply since it is an IOT and not a subcontract.

Let me know if you need more detail.  Thanks in advance.

 

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No, it is not a SB set aside. It is an IDIQ.  Both entities are foreign owned.  The contract holder was set up with a security agreement so that it could perform classified work.  In the IDIQ proposal, the intent to have the affiliate perform any non-classified work was made clear, and the same for any Task Order proposals.  We have been very upfront on the issue.

Initially, we got some push back on charging G&A for both entities, but won that argument.  Now they are complaining about how much work the affiliate is doing, but haven't offered any legal support (yet) for not allowing it.  I am just trying to get in front of any argument they may make.

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