52.236-1
Performance of Work by the Contractor
Contractors must perform a specified minimum percentage of construction work on-site with their own organization, unless an approved reduction is granted.
Overview
FAR 52.236-1, "Performance of Work by the Contractor," requires contractors on certain construction contracts to perform a specified minimum percentage of the work on-site using their own organization, rather than subcontracting the majority of the work. The exact percentage is determined by the contracting officer based on the complexity and magnitude of the project and is inserted into the contract. This clause ensures that prime contractors maintain direct responsibility for a significant portion of the contract performance, promoting quality control and accountability. The required percentage can be reduced during contract performance if the contractor requests it and the contracting officer agrees that it benefits the government.
Key Rules
- Minimum Self-Performance Requirement
- Contractors must perform at least the specified percentage of the total work on-site with their own organization.
- Percentage Determination
- The contracting officer sets the percentage based on project complexity and customary subcontracting practices.
- Reduction of Requirement
- The required percentage may be reduced via supplemental agreement if requested by the contractor and approved by the contracting officer for the government's advantage.
Responsibilities
- Contracting Officers: Determine and insert the appropriate percentage, consider reduction requests, and approve changes if advantageous to the government.
- Contractors: Ensure compliance with the self-performance percentage, request reductions if necessary, and maintain documentation of work performed by their own organization.
- Agencies: Oversee compliance and ensure contract administration aligns with the clause.
Practical Implications
- This clause exists to prevent excessive subcontracting and ensure prime contractors are directly involved in project execution.
- Contractors must carefully plan resource allocation to meet the self-performance requirement.
- Failure to comply can result in contractual remedies or penalties. Common pitfalls include miscalculating self-performed work or failing to obtain approval for reductions.