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Breakout Session # 305 Barbara S. Kinosky, Esq., Centre Consulting, Inc. James S. Phillips, Esq., Centre Consulting, I

Basics of Subcontracting. Breakout Session # 305 Barbara S. Kinosky, Esq., Centre Consulting, Inc. James S. Phillips, Esq., Centre Consulting, Inc. Date April 15, 2008 Time 2:10pm-3:10pm. Privity of Contract. Privity of Contract Government Prime Contractor

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Breakout Session # 305 Barbara S. Kinosky, Esq., Centre Consulting, Inc. James S. Phillips, Esq., Centre Consulting, I

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  1. Basics of Subcontracting Breakout Session # 305 Barbara S. Kinosky, Esq., Centre Consulting, Inc. James S. Phillips, Esq., Centre Consulting, Inc. Date April 15, 2008 Time 2:10pm-3:10pm

  2. Privity of Contract Privity of Contract Government Prime Contractor Subcontractor

  3. FAR Requirements for Subcontractors

  4. FAR Part 6: Competition Requirements

  5. FAR Part 15 Make or Buy?

  6. FAR Part 44 Contractors’ Purchasing System Review

  7. FAR Part 19 Subcontracting Plans

  8. Flow-Down Clauses

  9. Mandatory versus Non-Mandatory

  10. Limited Flow-Down Requirements for Commercial Contracts

  11. Non-Commercial Contracts • Labor Laws • Cost Accounting • Audits • Intellectual Property

  12. Subcontracting Drafting Guidelines • Shall versus will. • Delivery when? • Not on my watch.

  13. Key Clauses to Negotiate • Changes • Intellectual Property • Inspection and Acceptance • Payment • Terminations

  14. Cost and Pricing Issues

  15. Prime Contractor Responsibilities for Subcontractors • Determine Reasonableness • Analysis of Data

  16. Payment Issues

  17. Payment is an Exception to the Privity Doctrine

  18. Organizational Conflicts of Interest

  19. Organizational Conflicts of Interest • Far Part 9- Marketing Consultants • General Rules Mention Future Prime and Subcontract Awards

  20. Buy American Act Issues

  21. BAA/ TAA Country of origin of the supplier that governs and not the country of origin of the prime or first tier subcontractor

  22. Labor Laws

  23. Prime must flow down Service Contract Act to subcontractors

  24. Terminations for Convenience

  25. Terminations for Default

  26. Subcontractor Claims • Lack of Privity • Sponsorship

  27. Subcontractor Protests

  28. New Time-and-Materials Rules

  29. Thorny Issues What rate do you invoice the Government for subcontractors under time-and-materials task orders, including GSA schedule orders? Your GSA rates or the amount you pay the subcontractor?

  30. TIME= Bill at Prime’s Schedule Rates OR MATERIAL= Bill as “Other Direct Cost” at Cost

  31. New FAR Rules Provide Multiple Solutions Rule #1 – T&M for Commercial Services (FAR 52.216-31) Rule #2 – T&M for Non Commercial Services with Competition (FAR 52.216-29) Rule #3 – T&M for Non Commercial Services Without Competition (FAR 52.216-30)

  32. bkinosky@centereconsult.com

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