I'm curious as to how others approach this scenario regarding issuing multiple subcontracts with one vendor under one project.

Let's assume you have Project X. Project X is a CPFF contract for $10 million.

Under that project, you require the services of a subcontract so one is selected through a competitive basis. The result is a Fixed Price subcontract to Company XYZ for $75,000. Since this amount is under $100k, you do not notify or request consent from the Government in accordance with 52.244-2.

The work progesses nicely and is completed. Shortly thereafter while performing your same project, you realize that an additional task will need to be completed by a subcontractor. You then issue a new FP subcontract to Company XYZ again for $60,000.

The question now remains:

1. Is consent now required under FAR 52.244-2 because you will be issuing the same company two subcontracts in excess of $100k under the same project; or

2. Are these two separate subcontracts treated individually in that one is for $75k and one is for $60k - thus both under $100k.

I'm curious as to how others have approached this.

Did the Government require the additional task with a change order? Who caused the change?

The work progesses nicely and is completed. Shortly thereafter while performing your same project, you realize that an additional task will need to be completed by a subcontractor. You then issue a new FP subcontract to Company XYZ again for $60,000.

My question is how the noncompetitive award of the additional task to the subcontractor was justified, and how price reasonableness was determined. Especially after the subcontractor had physically completed the original SOW.

I would notify the Government with the information you've provided and let the CO determine if you need approval or not. This way you're not viewed as being deceptive.

It is my understanding that the requirement for obtaining consent is based upon cumulative and not per action. Certainly Task Orders issued under the same Subcontract once they meet or exceed the threshold would require the contractor to request and obtain said consent. Sometimes the contractor knows upfront that the subcontract will meet or exceed the threshold for consent and therefore requests consent in advance of placement of the subcontract. Sometimes however, they don't but when the threshold is about to be met or exceeded the contractor needs to obtain consent to continue.

Though this was not the issue, I wouldn't want to leave out the requirment to seek consent based upon subcontract type also.

In my 30 years of working for a prime contractor, the requirement for consent has never been cumulative, but is based on the individual procurement transaction amount (& type). Also, with my company, change orders stand alone as separate transactions for consent consideration. So if the change amount does not exceed the consent threshold, the change does not require consent.

In your example, there are 2 separate subcontracts issued, each of which is below the consent threshold, therefore, neither of them would require consent.

ERS:

You wrote:

It is my understanding that the requirement for obtaining consent is based upon cumulative and not per action.

Your understanding is absolutely, positively, dead wrong. The plain language of the FAR says otherwise. See FAR 52.244-2, Subcontracts (JUN 2007), paragraph (a):

Consent to subcontract means the Contracting Officer's written consent for the Contractor to enter into a particular subcontract.

Emphasis added. You also wrote:

Certainly Task Orders issued under the same Subcontract once they meet or exceed the threshold would require the contractor to request and obtain said consent.

There is no basis in FAR on which to support that statement.