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3.3 Subcontract Administration. 1.14.14 – Shawn Hollopeter. Subcontracts . Are negotiated agreements between the prime contractor and the subcontractor. Subcontractors typically provide a commodity at a fixed price.
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3.3 Subcontract Administration 1.14.14 – Shawn Hollopeter
Subcontracts • Are negotiated agreements between the prime contractor and the subcontractor. • Subcontractors typically provide a commodity at a fixed price. • Depending on the complexity of the deliverable, subcontractors may further subcontract, creating a hierarchy of subcontractors.
Privity of Contract • The premise is that only parties to contracts should be able to sue to enforce their rights or claim damages as such. • The buyer should therefore exercise care regarding communication with subcontractors. • The buyer needs to ensure that the scope of the subcontract is clearly documented and well understood by both parties.
Buyer’s Role • Should require the prime contractor to receive the governments consent to subcontract in advance of the period of performance. • Ensure that the subcontract includes all legal flow down requirements. • Small Business goals • Ensure that the government obtains appropriate data rights to research or development performed by the subcontractor. • Include the subcontractor in appropriate meetings and reviews.
