44.201-1
Consent requirements
Contractors must obtain Government consent for certain subcontracts based on their purchasing system status, contract type, and specific thresholds or risks identified by the contracting officer.
Overview
FAR 44.201-1 outlines when contractors must obtain the Government’s consent before awarding subcontracts. The requirements differ based on whether the contractor has an approved purchasing system and the type, value, and complexity of the subcontract. The regulation aims to ensure that the Government maintains oversight and risk management over significant or sensitive subcontracting actions.
Key Rules
- Approved Purchasing System
- Contractors with an approved purchasing system only need consent for subcontracts specifically identified by the contracting officer, typically due to risk, complexity, or criticality.
- No Approved Purchasing System
- Contractors without an approved purchasing system must obtain consent for certain subcontracts under cost-reimbursement, time-and-materials, labor-hour, or letter contracts, and for unpriced actions under fixed-price contracts exceeding the simplified acquisition threshold.
- Thresholds for Fixed-Price Subcontracts
- For DOD, Coast Guard, and NASA: Consent is required for fixed-price subcontracts exceeding the greater of the simplified acquisition threshold or 5% of the contract’s total estimated cost.
- For other civilian agencies: Consent is required for fixed-price subcontracts exceeding either the simplified acquisition threshold or 5% of the contract’s total estimated cost.
- Architect-Engineer Services
- Consent may be required for subcontracts under architect-engineer prime contracts.
- Purchases from Government Sources
- Written authorization from the contracting officer to purchase from Government sources is considered consent.
Responsibilities
- Contracting Officers: Identify subcontracts requiring consent, provide written authorization, and ensure oversight.
- Contractors: Determine if consent is required, request consent as needed, and comply with contract clauses.
- Agencies: Monitor compliance and provide guidance on consent requirements.
Practical Implications
- Ensures Government oversight of high-risk or high-value subcontracts.
- Contractors must carefully review contract clauses and thresholds to avoid unauthorized subcontracting.
- Failure to obtain required consent can result in noncompliance and potential contract issues.