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I seem to remember if a Prime contractor uses (issues a purchase order) to a government facility to perform some qualification testing for example, that procurement is considered a competitive procurement.  Is this true ?  If so, where is reference for this for a file write up? The Prime has a CPFF contract and FAR 52.244-5 is included in Primes' contract.

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Interesting topic. I am not aware of a FAR citation regarding your question. I don't know where you are going with this. In my experience, the contract terms and conditions (mandatory flowdowns and business flowdowns) between the prime and the agency ("subcontractor") was usually one sore point. The other was the agency ("subcontractor") insistence that it was selling work and the prime needed to sign ITS sales contract terms without exception. Over several occasions, those two issues were insurmountable in the time frame needed, if it were even possible at all. It turned out the most successful  way was convincing the prime contract agency customer that the work should be Government furnished on the prime and handled by a mod reducing the prime contract work and an equitable adjustment.

Edited by Neil Roberts
deleted "downward" equitable adjustment
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