Greetings:
I am seeking guidance from the community on this issue. Any assistance you can provide would be appreciated.
Background: The prime contract includes FAR 52.244-2 with para (d) modified as follows:
(d) If the Contractor has an approved purchasing system, the Contractor nevertheless shall obtain the Contracting Officer’s written consent before placing the following subcontracts:
Notwithstanding the language contained in paragraph ©, written consent from the Contracting Officer is required prior to entering any subcontract over the simplified acquisition threshold that was not originally proposed.
The prime has an approved purchasing system. A subcontract was included in the contract proposal at a value under the Simplified Acquisition Threshold ($140K). The resulting contract states in Section B that Subcontractor ABC is authorized to work under the contract. During execution of the contract, the need arises to modify the subcontract to add value in the amount of $15K resulting in a cumulative subcontract value of $155K.
Question: Does the prime need to obtain the Contracting Officer’s consent for the $15K mod? Some argue, “Yes, because the cumulative subcontract value would exceed the SAT,” and some argue, “No, because at no time would a particular subcontract, or modification to a subcontract for which consent is required, exceed the SAT.” Which interpretation, if either, is correct? Thank you for your time.