44.204 Contract clauses
Source: FAR 44.204 on acquisition.gov
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.
(a)
(1) The contracting officer shall insert the clause at 52.244-2, Subcontracts, in solicitations and contracts when contemplating-
(i) A cost-reimbursement contract;
(ii) A letter contract that exceeds the simplified acquisition threshold;
(iii) A fixed-price contract that exceeds the simplified acquisition threshold under which unpriced contract actions (including unpriced modifications or unpriced delivery orders) are anticipated;
(iv) A time-and-materials contract that exceeds the simplified acquisition threshold; or
(v) A labor-hour contract that exceeds the simplified acquisition threshold.
(2) If a cost-reimbursement contract is contemplated, for civilian agencies other than the Coast Guard and the National Aeronautics and Space Administration, the contracting officer shall use the clause with its Alternate I.
(3) Use of this clause is not required in-
(i) Fixed-price architect-engineer contracts; or
(ii) Contracts for mortuary services, refuse services, or shipment and storage of personal property, when an agency-prescribed clause on approval of subcontractors’ facilities is required.
(b) The contracting officer may insert the clause at 52.244-4, Subcontractors and Outside Associates and Consultants (Architect-Engineer Services), in architect-engineer contracts.
(c) The contracting officer shall, when contracting by negotiation, insert the clause at 52.244-5, Competition in Subcontracting, in solicitations and contracts when the contract amount is expected to exceed the simplified acquisition threshold, unless-
(1) A firm-fixed-price contract, awarded on the basis of adequate price competition or whose prices are set by law or regulation, is contemplated; or
(2) A time-and-materials, labor-hour, or architect-engineer contract is contemplated.