44.204
Contract clauses
FAR 44.204 mandates specific subcontracting and competition clauses for certain contract types and values, ensuring oversight and compliance in government contracting.
Overview
FAR 44.204 outlines the specific contract clauses that contracting officers must include in solicitations and contracts involving subcontracts. It details when to use clauses related to subcontracts, competition in subcontracting, and the involvement of subcontractors and outside associates, depending on contract type and value. The section ensures that appropriate oversight and competition requirements are embedded in contracts, particularly those exceeding the simplified acquisition threshold or involving complex contract types.
Key Rules
- Clause 52.244-2, Subcontracts
- Must be included in cost-reimbursement, letter, certain fixed-price, time-and-materials, and labor-hour contracts exceeding the simplified acquisition threshold. Alternate I is required for civilian agencies (except Coast Guard and NASA) in cost-reimbursement contracts.
- Exceptions to Clause 52.244-2
- Not required for fixed-price architect-engineer contracts or contracts for mortuary, refuse, or personal property shipment/storage services with agency-specific facility approval clauses.
- Clause 52.244-4, Subcontractors and Outside Associates and Consultants (Architect-Engineer Services)
- May be included in architect-engineer contracts at the contracting officer’s discretion.
- Clause 52.244-5, Competition in Subcontracting
- Required in negotiated contracts exceeding the simplified acquisition threshold, unless the contract is firm-fixed-price (with adequate price competition or set by law/regulation), or is a time-and-materials, labor-hour, or architect-engineer contract.
Responsibilities
- Contracting Officers: Must determine and insert the appropriate clauses based on contract type, value, and agency requirements.
- Contractors: Must comply with the requirements and procedures set forth in the applicable clauses regarding subcontracting and competition.
- Agencies: Ensure oversight and compliance with clause inclusion and subcontracting requirements.
Practical Implications
- Ensures proper oversight and competition in subcontracting, especially for high-value or complex contracts.
- Contractors must be aware of which clauses apply to their contracts and the obligations they impose.
- Failure to include or comply with required clauses can result in noncompliance and potential contract issues.