52.244-2
Subcontracts
FAR 52.244-2 requires contractors to obtain Contracting Officer consent and provide advance notification for certain subcontracts, ensuring government oversight and compliance with procurement regulations.
Overview
FAR 52.244-2, Subcontracts, establishes the requirements for obtaining consent to subcontract and notification procedures for prime contractors. It defines when contractors must seek the Contracting Officer’s written consent before entering into subcontracts, particularly for certain contract types and dollar thresholds, and outlines the information that must be provided for consent. The clause also addresses the use of approved purchasing systems, prohibits cost-plus-a-percentage-of-cost subcontracts, and requires prompt notification of litigation or claims involving subcontractors. Alternate I modifies notification requirements for contractors with approved purchasing systems.
Key Rules
- Consent to Subcontract
- Contractors must obtain written consent from the Contracting Officer for specific subcontracts, especially if they lack an approved purchasing system or for certain contract types and values.
- Notification Requirements
- Contractors must notify the Contracting Officer in advance of entering into subcontracts requiring consent, providing detailed information about the subcontract and negotiation process.
- Approved Purchasing System
- Contractors with an approved purchasing system may have reduced consent requirements but must still comply with specified notification or consent obligations.
- Prohibited Subcontract Types
- Cost-plus-a-percentage-of-cost subcontracts are prohibited, and fees on cost-reimbursement subcontracts are capped per FAR 15.404-4(c)(4)(i).
- Litigation and Claims Notification
- Contractors must promptly notify the Contracting Officer of any litigation or claims involving subcontractors that may impact the contract.
Responsibilities
- Contracting Officers: Review and provide consent for subcontracts as required; review purchasing systems; monitor compliance.
- Contractors: Obtain required consents, provide advance notifications, maintain documentation, and comply with subcontracting prohibitions and reporting obligations.
- Agencies: Oversee contractor purchasing systems and enforce compliance with subcontracting rules.
Practical Implications
- Ensures government oversight of significant subcontracting actions to mitigate risk and ensure compliance.
- Impacts daily contract administration, especially for large or complex contracts with multiple subcontractors.
- Common pitfalls include failing to obtain required consent, incomplete notifications, or using prohibited subcontract types.