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. 

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.

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.

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

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Edited October 9, 20196 yr by Neil Roberts
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