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  • Question

    Since my prime contractor does not have an approved purchasing system, and the subcontractor's quote is least than 5 percent of the total estimate cost of the contract. Do this mean I do not have to have an approval to add the subcontractor to this contract.


    Answer

    Please review the clauses to determine if FAR 52.244-2 is included in the contract.  It states:
     

    (c) If the Contractor does not have an approved purchasing system, consent to subcontract is required for any subcontract that-
    (1) Is of the cost-reimbursement, time-and-materials, or labor-hour type; or
    (2) Is fixed-price and exceeds—
    (i) For a contract awarded by the Department of Defense, the Coast Guard, or the National Aeronautics and Space Administration, the greater of the simplified acquisition threshold or 5 percent of the total estimated cost of the contract; or
    (ii) For a contract awarded by a civilian agency other than the Coast Guard and the National Aeronautics and Space Administration, either the simplified acquisition threshold or 5 percent of the total estimated cost of the contract.
    If the contract includes this clause, then you have the authority to act accordingly.


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