9.604 Limitations
Source: FAR 9.604 on acquisition.gov
Contractor team arrangements cannot override antitrust laws or limit the Government’s contractual rights, and prime contractors remain fully responsible for performance.
Overview
FAR 9.604 clarifies that contractor team arrangements must not violate antitrust laws and do not override the Government’s established rights in contracting. This section outlines specific limitations, ensuring that team arrangements do not restrict the Government’s authority to require subcontract consent, assess prime contractor responsibility, control data rights, enforce competition policies, or hold the prime contractor accountable for performance. The regulation reinforces that, regardless of any teaming agreements, the Government retains full oversight and contractual rights.
Key Rules
- Antitrust Compliance
- Contractor team arrangements cannot violate antitrust statutes.
- Government Rights Preserved
- The Government retains the right to:
- Require consent to subcontracts (per FAR 44.2).
- Determine prime contractor responsibility based on team arrangements (per FAR 9.1).
- Control and provide data rights.
- Pursue competition and subcontracting policies at any time.
- Hold the prime contractor fully responsible for contract performance.
- The Government retains the right to:
Responsibilities
- Contracting Officers: Ensure team arrangements comply with antitrust laws and do not limit Government rights; enforce consent, responsibility, and data rights provisions.
- Contractors: Structure team arrangements in compliance with antitrust laws and Government rights; understand that prime contractors remain fully responsible for performance.
- Agencies: Maintain oversight of team arrangements and enforce competitive and subcontracting policies.
Practical Implications
- This section exists to prevent contractor team arrangements from undermining Government authority or violating competition laws.
- Contractors must not assume that teaming agreements reduce their obligations or the Government’s oversight.
- Common pitfalls include misunderstanding the limits of team arrangements or failing to secure required subcontract consents.
Nothing in this subpart authorizes contractor team arrangements in violation of antitrust statutes or limits the Government’s rights to-
(a) Require consent to subcontracts (see subpart 44.2);
(b) Determine, on the basis of the stated contractor team arrangement, the responsibility of the prime contractor (see subpart 9.1);
(c) Provide to the prime contractor data rights owned or controlled by the Government;
(d) Pursue its policies on competitive contracting, subcontracting, and component breakout after initial production or at any other time; and
(e) Hold the prime contractor fully responsible for contract performance, regardless of any team arrangement between the prime contractor and its subcontractors.