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Changing Subcontract Type


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#1 wayforward

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Posted 09 February 2011 - 02:29 PM

Does it matter to the Government if in our prime proposal we listed all our subs and the contemplated subconract type but then decided to change the type after the prime was awarded?
Would we have to go back to the Govt and obtain consent for the different subcontract type (i.e., instead of Cost Plus Award Fee like the prime, we are issuing T&M to the subs instead (for ease in administration?). Does it only matter if we specified the subconract type in the proposal? or it doesn't really matter at all (whether we specified or not)?
Please advise. I am new to the company and wasn't involved in the initial proposal. I know several subs were issued to mirror the prime type but now the decision is being made to issue T&M. It seems reasonable to on the surface as long as the subs are okay with change, why not?

#2 IPoppke

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Posted 09 February 2011 - 02:50 PM

We have a CPFF with the government, and asked our subs to bid based on our best guess of the potential work at the time of the solicitation. We do R&D so we just don't know what they may send us. The subs proposed based on one type, and then when the actual requirement came in after contract award, I thought another contract type was better, and used that contract vehicle instead. I tailored the contract type to the circumstances at the time. I would do the same again. I'd be interested to see how others answer this...

#3 Don Mansfield

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Posted 09 February 2011 - 03:58 PM

Does it matter to the Government if in our prime proposal we listed all our subs and the contemplated subconract type but then decided to change the type after the prime was awarded?
Would we have to go back to the Govt and obtain consent for the different subcontract type (i.e., instead of Cost Plus Award Fee like the prime, we are issuing T&M to the subs instead (for ease in administration?). Does it only matter if we specified the subconract type in the proposal? or it doesn't really matter at all (whether we specified or not)?
Please advise. I am new to the company and wasn't involved in the initial proposal. I know several subs were issued to mirror the prime type but now the decision is being made to issue T&M. It seems reasonable to on the surface as long as the subs are okay with change, why not?

1. Does your contract include the clause at FAR 52.244-2? If so, then are the subcontracts in question listed in paragraph (j)?

2. Do you have an approved purchasing system?

#4 wayforward

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Posted 10 February 2011 - 01:21 PM

[quote name='Don Acquisition' date='Feb 9 2011, 03:58 PM' post='8400']
1. Does your contract include the clause at FAR 52.244-2? If so, then are the subcontracts in question listed in paragraph (j)?

2. Do you have an approved purchasing system

WE HAVE AN APPROVED SYSTEM. THE SUBS ARE CALLED OUT IN THE PRIME. NOT SURE OF THE CLAUSE BEING IN OR NOT. WILL CHECK.

#5 Jacques

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Posted 10 February 2011 - 02:58 PM

Not sure what, "The subs are called out in the prime" means. Has the government contracting officer already granted consent to the subcontract, as reflected in paragraph (j) of FAR clause 52.244-2? FAR 44.202-1© provides:

Designation of specific subcontractors during contract negotiations does not in itself satisfy the requirements for advance notification or consent pursuant to the clauses at 52.244-2. However, if, in the opinion of the contracting officer, the advance notification or consent requirements were satisfied for certain subcontracts evaluated during negotiations, the contracting officer shall identify those subcontracts in paragraph (j) of the clause at 52.244-2.



#6 wayforward

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Posted 11 February 2011 - 03:41 PM

Not sure what, "The subs are called out in the prime" means. Has the government contracting officer already granted consent to the subcontract, as reflected in paragraph (j) of FAR clause 52.244-2? FAR 44.202-1? provides:


Sorry for the confusion, the team subs were approved in the prime in accordance with 52.244-2 and they submitted sealed packages to the Govt. So, I believe changing the subcontract type is not that signifcant, especially if we are making it easier for all by going with T&M for the smaller subs. that do not have approved purchasing systems, (vice CPFF or CPAF)

#7 FAR Fetched

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Posted 23 February 2011 - 10:14 AM

Cost-reimbursement types of contracts provide for payment of allowable incurred costs, to the extent prescribed in the contract. How will you know that the T&M wrap rate only includes allowable costs? If the government views the subcontractor?s rate as the Prime's "cost", I guess you're fine. Who came up with the sub T&M rates? I'm assuming there is profit built into the sub's T&M rate and you're not giving the subs any portion of the "Fee" since they're using T&M rates.

How does your contract define Cost?




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