In a Government Contract, the responsibility for compliance with Federal Regulations is passed to the contractor and then passed down the supply chain. Each Supplier must be responsible for the suppliers underneath them. A simple PO to your supplier will not do the trick in this environment.
Large companies have departments for sub contract management, small companies rarely have even one dedicated individual. Sub contract management is a big deal because you the prime have to ensure that your subcontractors are compliant, are abiding by all the appropriate FAR clauses (that hopefully you have correctly flowed down to them in your contract) and procedures in fair costs and pricing.
A proper subcontract should include (but not limited to):
- Type of contract
- Fixed Price
- Time & Material
- Cost Reimbursable
- Detailed Statement of Work
- Specifications that must be met
- Detailed description of the deliverable
- Testing Criteria
- Acceptance Criteria
- Schedule of Completion of Tasks
- Due date for contract completion
- Due date(s) for intermediate milestones
- Payment Terms
- Flowdown Clauses from the Government Contract
- Mandatory Flowdown clauses
- Contract Specific Flowdown Clauses
- Corporate Terms and Conditions
Do your subcontracts have this content? Are you reviewing the subcontracts to your contract from your customer? If not, you will need help in this. ReliAscent has over 170 years of collective experience in this field. From a draft of the subcontract, to actual final contract, to negotiation of the subcontract with the supplier, ReliAscent has been there, done that. Any assistance you request from ReliAscent will be an allowable cost under your contract. Please call ReliAscent today to find out how this might benefit your company.
Photo Credit: United States Air Force