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Subcontracting to Army Depot under DOD Prime


DawnS

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As the prime contractor for a DOD prime with all the typical FAR and DFAR applied, we will be subcontracting a piece of the work to an Army Depot. Various searches have failed me to try to determine if the FAR/DFAR flow to the Depot, including certs such as CAS, CCoPD, etc., as required or are they exempt. As we build the RFP the topic arose so we can remain as compliant as possible. 

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Have you found this document in your research.  Might not answer your question but will get you on the road to what might be possible.   I do suggest that your specific question would be best answered by the CO for your prime contract.

https://www.acq.osd.mil/log/MPP/.policy.html/PPP_for_Product_Support_Guidebook_Oct2016.pdf

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Maybe the question can be best answered by an official at the depot who will be doing the work.  The instrument will not be a subcontract, but is called something else (I forget right now).  There is statutory authority for depots to perform work for private sector companies, and the depots are the only experts in that authority.

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1 hour ago, Vern Edwards said:

You are a prime contractor to a DOD prime contractor? I don't understand that.

We are the prime contractor under a DOD contract is how I should have stated it. We are preparing to send and RFP to then award a subcontract/PO to an Army Depot. When doing so with other non-USG entities we obtain certs, flow the appropriate FAR/DFAR, include clauses as applicable per threshold, etc. I suppose we could request all the same in our RFP but I am getting caught in circular thinking. For instance, when I think through do we ask the Depot to cert to CAS, apply CAS then report as CAS covered to the Gov't about the Gov't. 

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My advice is that you contact the contracting officer for your prime contract, tell them what you plan to do, and ask for guidance. Asking the prospective subcontractor is not enough, because you must answer to the contracting officer for your prime contract. If you receive guidance, write a letter to the contracting officer describing your understanding of it and send it to the contracting officer with a copy to the depot subcontractor.

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My experience from the prime contractor side is that this work is best handled as government furnished under your prime contract, which you should request from the contracting officer. This should eliminate the need to issue a subcontract. The other route is to ask the contracting office to delete all mandatory subcontract flowdowns from the prime contract for this work from the depot. This would tend to simplify and eliminate the need to include many requirements in the subcontract. In any event, my experience tells me that the depot may still have some need to have your company agree to certain general requirements included in a standard document the depot uses in such cases.

Edited by Neil Roberts
added "for this work from the depot."
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Here is text from the Letterkenny Army Depot:

 

 

Quote

 

Partnering with Private Industry

The Department of the Army’s strategic goal is to continue to grow and expand partnerships between Army depots and industry.

WHAT IS A PUBLIC-PRIVATE PARTNERSHIP?

Definition by DUSD(L&MR) Memo dated 30 Jan 02 – “A public-private partnership for depot maintenance is an agreement between an organic depot maintenance activity and one or more private industries or other entities to perform work or utilize facilities and equipment”. 


THE LEAD PARTNERING ADVANTAGE:

  • Lowers cost of products and services
  • Sustains critical skills and capabilities
  • Improves operational efficiencies

BOTTOM LINE – ENSURES WARFIGHTER READINESS

The first measure of a successful partnership opportunity is evaluating what each prospective partner brings to the table.  In most cases, especially with an original equipment manufacturer, the government and industry each have strengths that when merged form a strong cohesive relationship, resulting in a lower cost of the product or services and an improvement of operational efficiencies.  Additionally, the partnership provides a means to sustain critical skills and capabilities resident within the government and industry.


STATUTORY AUTHORITIES:

10 USC § 2474 – Requires the Military Departments to designate depot maintenance activities as Centers of Industrial and Technical Excellence (CITEs), authorizes and encourages public-private partnerships, permits performance of work related to core competencies, permits use of facilities and equipment and permits sales proceeds from public-private partnership to be credited to depot accounts.  Letterkenny Army Depot has CITE designation for Air Defense & Tactical Missile Ground Support Equipment and Mobile Electric Power Generation Equipment.

10 USC § 4544 – Allows Army working capital funded industrial facilities to:  sell any manufactured article or service to non-Army entity; perform work for a non-Army entity; share work with a non-Army facility; enter into a lease or facilities use agreement for facility space or equipment with a non-Army entity; and prepare/submit joint offers with a non-Army entity in competitive procurements solicited by a federal agency.  Authorizes multi-year, firm fixed pricing.  Authorizes a non-Army entity to perform work at an Army facility.  Expires FY14.

10 USC § 2208(j) – Permits depots that are financed through working capital funds, to sell articles and services outside DoD if the purchaser is fulfilling a DoD contract and the contract is awarded pursuant to a public-private competition or doing so would advance the objectives of 10 USC 2474.

10 USC § 4543 -  Army working capital industrial facilities (including arsenals) may sell manufactured articles to, or perform services for persons outside of DoD under certain conditions.

10 USC § 2470 – A Depot level DoD activity shall be eligible to compete for the performance of any depot-level maintenance and repair workload of a Federal agency for which competitive procedures are used to select the entity to perform the workload.

10 USC § 2667 – Allows leasing on non-excess facilities and equipment

10 USC § 2208(h) – Supplies available in inventories financed by working capital funds may be sold to contractors or used in performing contracts with the DoD.

10 USC § 2539b – DoD laboratories and test facilities may sell, rent, lend, or give samples, drawings and manufacturing or other information (subjects to rights of third persons); sell, rent, or lend government equipment or material for use on independent research and development projects; or make available testing services to any persons.

 


HOW TO PARTNER WITH LETTERKENNY ARMY DEPOT:

  • Initiate contact with Letterkenny Business Development Office (717-267-5210).
  • Sign a Nondisclosure Agreement (NDA)
  • Provide a Scope of Work (SOW) to Letterkenny Business Development Office
  • Business Development Office will staff SOW and return a ROM based on requirements.
  • Letterkenny Legal Office and Business Development Office begin discussions with Private Entity.
  • Appropriate contractual documents (Memorandum of Agreement, Contracts, etc) are developed and signed by all parties involved.

 

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