44.400
Scope of subpart
FAR 44.400 limits the contract clauses that must be flowed down to subcontractors providing commercial products or services, reducing unnecessary regulatory burdens.
Overview
FAR 44.400 establishes the scope for Subpart 44.4, which sets forth the policies that limit the contract clauses contractors must flow down to their subcontractors when those subcontractors are providing commercial products, commercial components, or commercial services. This section is grounded in the statutory authority of 41 U.S.C. 3307, emphasizing that only certain clauses are required to be included in subcontracts for commercial items and services. The intent is to streamline subcontracting requirements and reduce unnecessary regulatory burdens on commercial supply chains.
Key Rules
- Limitation on Required Clauses
- Contractors are only required to include specific, designated contract clauses in subcontracts for commercial products, components, or services.
- Applicability to Commercial Items
- The policies apply specifically to subcontracts involving commercial products, commercial components, or commercial services, not to non-commercial items.
Responsibilities
- Contracting Officers: Must ensure that only the appropriate, limited set of clauses are required to be flowed down to subcontractors for commercial items and services.
- Contractors: Must comply with the prescribed flowdown requirements and not impose unnecessary clauses on their commercial subcontractors.
- Agencies: Should oversee and enforce compliance with these limitations to support efficient procurement.
Practical Implications
- This section exists to reduce regulatory complexity and promote the use of commercial products and services in government contracting.
- It impacts daily contracting by clarifying which clauses must be flowed down, helping contractors avoid overburdening their supply chain.
- Common pitfalls include mistakenly requiring non-mandatory clauses in commercial subcontracts, leading to compliance issues or supplier reluctance.