Subcontract Management Flashcards

A subcontractor on a fixed-price prime contract requests a price adjustment due to government-caused delays. Who has the legal standing to present this claim to the government?

Answer: The prime contractor, who must sponsor the subcontractor's claim

Because there is no privity between the government and subcontractor, only the prime contractor can present (sponsor) the subcontractor's claim to the government.

Which FAR clause requires prime contractors to provide subcontractors with timely payment after receiving payment from the government?

Answer: FAR 52.232-27, Prompt Payment for Construction Contracts

FAR 52.232-27 requires prime contractors on construction contracts to pay subcontractors promptly after receiving government payments, within specified timeframes.

Under FAR 19.702, what is the small business subcontracting plan requirement threshold for other-than-small business prime contractors?

Answer: Contracts expected to exceed $750,000 ($1.5 million for construction)

FAR 19.702 requires subcontracting plans from other-than-small business contractors when the contract is expected to exceed $750,000 ($1.5 million for construction).

What action must a contracting officer take before approving a prime contractor's request to change a subcontractor named in a subcontracting plan?

Answer: Review and approve the substitution, ensuring the replacement meets small business goals

The contracting officer must review and approve any substitution of named subcontractors in a plan to ensure small business goals are not undermined.

Which report do other-than-small prime contractors submit to report subcontracting plan achievements under contracts with subcontracting plans?

Answer: SF 294, Subcontracting Report for Individual Contracts

SF 294 is used by prime contractors to report actual subcontracting achievements against their approved subcontracting plan goals.

What is 'pass-through' subcontracting, and why is it a concern under FAR?

Answer: When a prime subcontracts all performance without adding value, potentially constituting an improper award

Pass-through subcontracting occurs when a prime adds no value and simply passes work through, raising concerns about compliance with limitations on subcontracting and possible affiliation rules.

Under FAR 44.303, what is the government's right when a contractor's purchasing system is disapproved?

Answer: The ACO may withhold a percentage of payments until the system is approved

FAR 44.303 authorizes the ACO to withhold a percentage of contract payments when the contractor's purchasing system is disapproved until corrective actions are implemented.