Part 1: Federal Subcontracting 101: An Overview
Prime contractors are required to flowdown a host of contractual requirements to their subcontractors. But determining who is and is not a “federal subcontractor” is not as easy as it sounds. In Part 1 of this 9-part series, the Sheppard Mullin Supply Chain Management Team will explore the meaning of the terms “subcontractor” and “subcontracting” under applicable laws, policies, and regulations, including how to distinguish between your “federal subcontractors” and mere vendors or suppliers, as well as why this distinction truly matters. We will also provide an overview of FAR Part 44 – the heart of the federal government’s rules regarding subcontracting policies and procedures.
Every year, the U.S. government awards hundreds of billions of dollars to prime contractors to deliver products and provide needed services. But a significant portion of this funding flows through the prime contractors down to subcontractors and vendors – entities who ultimately have no direct contractual relationship with the federal government, yet still are subject to a host of laws, policies, and regulations governing their performance. Federal law places a significant burden on prime contractors to carefully select subcontracting partners and effectively manage these agreements to ensure the government’s interests are protected.
Join the Sheppard Mullin Supply Chain Management Team as we explore, in this in-depth 9-part series, the complicated world of Federal subcontracting, including the responsibilities both prime and subcontractors have to ensure compliance with lengthy contract and regulatory requirements. Whether you are a prime contractor trying to understand your subcontract oversight responsibilities, or a subcontractor trying to understand your obligations when doing work for federal customers, the Sheppard Mullin Supply Chain Management Team is here to discuss real-life, practical, best practices in subcontract management.
Throughout this series, attendees will learn about:
- Understanding who is and is not a “subcontractor” under the FAR;
- Subcontracting policies and procedures in FAR Part 44;
- Tips in selecting business partners, including small business subcontractors, joint ventures, and teaming agreements;
- Developing and administering subcontracting plans;
- Negotiating subcontracts, including terms and conditions and other required flowdowns;
- Managing pricing issues under government contracts, including commercial item subcontracts; and
- Best practices for subcontract management and administration.