52.203-6
Restrictions on Subcontractor Sales to the Government
Prime contractors cannot restrict subcontractors from selling directly to the government, and must flow down this requirement to qualifying subcontracts.
Overview
FAR 52.203-6, "Restrictions on Subcontractor Sales to the Government," prohibits prime contractors from entering into agreements with subcontractors that restrict the subcontractor's ability to sell directly to the government any items or processes provided under the contract or follow-on production contracts. The clause must be included in all subcontracts exceeding the simplified acquisition threshold. There is an exception for rights authorized by law or regulation. Alternate I modifies the restriction for commercial products or services, limiting the prohibition to cases where the government is treated differently from other buyers.
Key Rules
- Prohibition on Restricting Subcontractor Sales
- Contractors cannot restrict subcontractors from selling directly to the government items or processes provided under the contract.
- Exception for Legal Rights
- Contractors may assert rights otherwise authorized by law or regulation.
- Flowdown Requirement
- The clause must be included in all subcontracts exceeding the simplified acquisition threshold.
- Alternate I for Commercial Items/Services
- For commercial products/services, the restriction applies only if the government is treated differently than other buyers.
Responsibilities
- Contracting Officers: Ensure the clause is included in applicable contracts and subcontracts.
- Contractors: Must not restrict subcontractor sales to the government and must flow down the clause to qualifying subcontracts.
- Agencies: Oversee compliance and address violations.
Practical Implications
- Ensures open competition and prevents anti-competitive practices in government procurement.
- Contractors must carefully review subcontract agreements to avoid prohibited restrictions.
- Failure to comply can result in contractual remedies or penalties.