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  • Understanding Subcontracts ...
    Wells, Rita Lappin

    Contract management, 03/2018, Volume: 58, Issue: 3
    Magazine Article

    Subcontracting is a foundational part of government contracting. This article discusses two important clauses related to subcontracting, the Competition in Subcontracting clause at Federal Acquisition Regulation (FAR ) 52.244-5 and the Subcontracts clause at FAR 52.244-2. Each clause is only a few paragraphs long, but they can have major implications for prime contractors, subcontractors, and government acquisition staff who monitor contract compliance. When prime contractors sign contracts containing these clauses, they need to understand the significance of their contractual responsibilities related to subcontracting. It is especially important for both prime contractors and subcontractors to understand these two clauses when entering into teaming arrangements before proposals are submitted. Reviewing the main points in this article can help to avoid noncompliance on the part of the prime contractor's team and prevent unrealistic expectations on the part of the suncontractors' teams.