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  • Question

    Is our contractor required to comply with FAR section 8.405 2(d) to provide details so that the COR can determine that the subcontractor's hours are fair and reasonable?


    Answer

    FAR 15.404-3 (Subcontract pricing considerations) covers the contracting officer's responsibilities in regard to the evaluation of subcontract costs. In addition, the clause at FAR 52.244-2 (Subcontracts) requires the prime contractor to provide detailed information regarding the subcontractor's pricing, which necessarily includes details on the subcontractor's proposed hours. So yes, the contractor must comply with the requirement to provide details so the contracting officer can analyze all of the prime's costs, to include subcontracted costs.

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