Subcontracting Exam Questions and Answers 100% Correct

Subcontract Information - ANSWER--The prime contractor (or high-tier subcontractor) is responsible for managing its subcontracts -Approval to subcontract out part of a gov't contract is not automatic -High-tier subcontractors must also manage their subcontracts, even if they are not the prime contractor on a gov't contract Consent to Subcontract - ANSWER-FAR 44.204 (a) -- The contracting officer shall insert the clause at 52.244-2, subcontracts in solicitations and contracts when contemplating-- -Cost-reimbursement contract -A letter contract that exceeds the simplified acquisition threshold -A fixed-price contract that exceeds the simplified acquisition threshold under which unpriced contract actions are anticipated -A time-and-materials contract that exceeds the simplified acquisition threshold -A labor-hour contract that exceed the simplified acquisition threshold FAR 52.244-2, Subcontracts - ANSWER-The gov't reserves the right to review the Contractor's purchasing system as set forth in FAR Subpart 44.3 If the contractor does not have an approved purchasing system, consent to subcontract is required for certain subcontracts If the contractor has an approved purchasing system, the contracting officer may still require consent for certain subcontracts Requires the Contractor to notify the Contracting Officer(CO) reasonably in advance of placing any subcontract or modification thereof for which consent is required including the following information: -A description of the supplies or services to be subcontracted -Identification of the type of subcontract to be used -Identification of the proposed subcontractor -the proposed subcontract guide Unless the consent or approval specifically provides otherwise, neither consent by the CO to any subcontract nor approval of the Contractor's purchasing system shall constitute a determination- 1. of the acceptability of any subcontract terms or conditions 2. Of the allowability of any cost under this contract 3. To relieve the Contractor of any responsibility for performing this contract Responsibilities - ANSWER-The prime contractor is responsible for managing its contracts. The prime contractor is primarily responsible for subcontract award, technical and financial performance, monitoring, and payment to the subcontractor for the work accomplished under subcontract terms Subcontractor selection - ANSWER-If possible the selection of a subcontractor should be on a competitive basis Notify the gov't upon award of subcontract and report subcontract costs as part of prime contractor's annual incurred cost proposal Monitoring Subcontracts - ANSWER-The contractor's internal control system over subcontracts and intracompany orders should provide for appropriate flow-down clauses into the subcontract/intracompany that require: -Gov't or contractor access to the subcontractor's books and records -Billings only include allowable costs