52.244-5
Competition in Subcontracting
Contractors must competitively select subcontractors whenever practical, except when awarding to protégés under the DoD Mentor-Protégé Program.
Overview
FAR 52.244-5, "Competition in Subcontracting," requires contractors to select subcontractors and suppliers through competitive procedures to the maximum extent practicable, aligning with the contract's objectives and requirements. This clause is designed to promote fair competition and ensure best value in subcontracting decisions. However, it provides an exception for contractors who are approved mentors under the DoD Mentor-Protégé Program, allowing them to award subcontracts noncompetitively to their protégés. This balances the need for competition with the goal of supporting small business development through the mentor-protégé relationship.
Key Rules
- Competitive Selection Requirement
- Contractors must use competitive procedures to select subcontractors and suppliers whenever practical and consistent with contract goals.
- Mentor-Protégé Program Exception
- Approved DoD Mentor-Protégé Program mentors may award subcontracts noncompetitively to their protégés under this contract.
Responsibilities
- Contracting Officers: Ensure inclusion of this clause in applicable contracts and monitor contractor compliance.
- Contractors: Conduct competitive subcontracting to the maximum practical extent and document justification for any noncompetitive awards, especially when using the mentor-protégé exception.
- Agencies: Oversee compliance and support mentor-protégé program objectives.
Practical Implications
- This clause exists to foster competition, reduce costs, and prevent favoritism in subcontracting, while also supporting small business development through the mentor-protégé exception.
- Contractors must balance efficiency and compliance, ensuring competitive practices unless a valid exception applies.
- Common pitfalls include inadequate competition documentation or improper use of the mentor-protégé exception.