Part 44
Subcontracting Policies and Procedures
FAR Part 44 sets the framework for managing, reviewing, and approving subcontracting practices to ensure government interests are protected and regulatory compliance is maintained.
Overview
FAR Part 44 establishes the policies and procedures governing subcontracting in federal contracts. It covers the requirements for obtaining consent to subcontract, the review and approval of contractors’ purchasing systems, and special considerations for subcontracts involving commercial products and services. The part is organized into four main subparts: general provisions, consent to subcontracts, purchasing system reviews, and commercial item subcontracting. Its purpose is to ensure that subcontracting practices support the government’s interests, maintain integrity in the procurement process, and ensure compliance with applicable laws and regulations.
Key Rules
- General Provisions
- Defines key terms and sets the overall framework for subcontracting policies.
- Consent to Subcontracts
- Outlines when contractors must obtain government consent before awarding subcontracts and the process for advance notification.
- Contractors’ Purchasing Systems Reviews
- Details the objectives, requirements, and procedures for reviewing and approving contractor purchasing systems, including surveillance and reporting.
- Subcontracts for Commercial Products and Services
- Specifies policies and contract clauses applicable to subcontracts for commercial items, including applicability and scope.
Responsibilities
- Contracting Officers: Must evaluate and approve subcontracting arrangements, conduct purchasing system reviews, and ensure compliance with consent requirements.
- Contractors: Required to obtain consent when necessary, maintain compliant purchasing systems, and follow policies for commercial item subcontracts.
- Agencies: Oversee contractor compliance, conduct system reviews, and report on purchasing system status.
Practical Implications
- FAR Part 44 exists to protect government interests by ensuring subcontracting is conducted responsibly and transparently.
- It impacts daily contracting by requiring oversight of subcontractor selection, purchasing system integrity, and compliance with consent and notification requirements.
- Common pitfalls include failing to obtain required consent, inadequate purchasing system controls, and noncompliance with commercial item subcontracting policies.