Subcontracts for Commercial Products and Commercial Services
Contractors must flow down a specific set of FAR clauses to all subcontracts for commercial products and services, ensuring key federal requirements are met throughout the supply chain.
Overview
FAR 52.244-6 establishes requirements for contractors to flow down specific FAR clauses to their subcontracts for commercial products and commercial services. The clause aims to ensure that key federal requirements—such as ethics, equal opportunity, cybersecurity, and supply chain security—are incorporated into commercial subcontracts at all tiers. It also encourages, to the maximum extent practicable, the use of commercial or non-developmental items as components in contract deliverables.
Key Rules
- Definitions and Scope
- Defines key terms (commercial product, commercial service, subcontract) and clarifies that subcontracts include transfers within affiliated entities.
- Use of Commercial Items
- Contractors must, where practicable, use commercial products, commercial services, or non-developmental items as components.
- Mandatory Flowdown Clauses
- Contractors must insert a specified list of FAR clauses (e.g., ethics, whistleblower protections, equal opportunity, cybersecurity, supply chain security, small business utilization) into subcontracts for commercial products or services, with certain clauses triggered by contract value, funding source, or other conditions.
- Optional Additional Clauses
- Contractors may include additional clauses only as necessary to meet their own contractual obligations.
- Inclusion of Clause Terms
- The terms of this clause, including the flowdown requirements, must be included in all applicable subcontracts.
Responsibilities
- Contracting Officers: Ensure the clause is included in prime contracts as required by FAR 44.403.
- Contractors: Flow down the specified clauses to all applicable subcontracts, monitor compliance, and ensure the use of commercial/non-developmental items where practicable.
- Agencies: Oversee contractor compliance and may receive reports of violations as specified in certain clauses.
Practical Implications
- This clause standardizes key federal requirements across the commercial supply chain, reducing risk and ensuring compliance with federal law. Contractors must carefully track which clauses apply to each subcontract, especially regarding thresholds and flowdown triggers. Failure to comply can result in contractual remedies or enforcement actions.