Clatch Posted October 8, 2019 Report Share Posted October 8, 2019 Hello everyone, I'm at a loss trying to figure out how this situation would be handled. Please bear with me as I lay it out: Parent Company A is the parent company to multiple wholly-owned subsidiaries. This scenario involves two; Subsidiary 1 and Subsidiary 2. Subsidiary 1 holds a GWAC that neither Subsidiary 2 or Parent Company A possess in their name. An opportunity is released on said GWAC that Subsidiary 2 would like to pursue. The opportunity requires DCAA audited accounting system, an approved purchasing system, and relevant past performance. Parent Company A holds the approved purchasing system, Subsidiary 1 holds the DCAA audited accounting system, and Subsidiary 2 holds the relevant past performance. Is it compliant to cherry pick the necessary systems from each company all under one blanket entity? Is there any guidance in the FAR aside from 31.205-26(e), which explains cost vs price in intra-company transfers. Hoping there's more info out there other than "its up to the contracting officer". Thanks y'all. Link to comment Share on other sites More sharing options...
ji20874 Posted October 8, 2019 Report Share Posted October 8, 2019 If the notice/solicitation requires the offering contractor to have a DCAA audited accounting system, an approved purchasing system, and relevant past performance, then that’s what Subsidiary 1 has to have — Subsidiary 1 is the holder of the multiple-award IDIQ contract. Link to comment Share on other sites More sharing options...
here_2_help Posted October 8, 2019 Report Share Posted October 8, 2019 3 hours ago, Clatch said: Is it compliant to cherry pick the necessary systems from each company all under one blanket entity? Is there any guidance in the FAR aside from 31.205-26(e), which explains cost vs price in intra-company transfers. Hoping there's more info out there other than "its up to the contracting officer". Thanks y'all. 1. No. You can't do that. See ji20874's post. 2. No. But there are relevant bid protest decisions. 3. You didn't mention CAGE codes. The are relevant to this discussion. Perhaps more relevant than legal entity. Link to comment Share on other sites More sharing options...
Neil Roberts Posted October 8, 2019 Report Share Posted October 8, 2019 (edited) The CPSR Guidebook indicates that subsidiaries are each separately subject to regulations. See https://www.dcma.mil/Portals/31/Documents/CPSR/CPSR_Guidebook_062719.pdf Page 122 Edited October 9, 2019 by Neil Roberts insert page info Link to comment Share on other sites More sharing options...
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