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  • Question

    Does FAR 36.501 a/b have any further bearing upon the administration of the contract? Or, is the dollar value of the self-performance target fixed at $2.4M by the completion of 52.236-1 with the 12% value? Does FAR 36.501 outline the steps the CO should take when defining the percentage to be included in the awarded contract, OR the process that should be used to negotiate with the general contractor with respect to typically sub-contracted disciplines following award?


    Answer

     
    First and foremost our relationship with the contractor is governed by the the clauses in the contract.  So any information in FAR 52.236-1 and VAAR 852.236-72 would rule over anything in FAR 36.501 in post award contract administration.  
     
    FAR 36.501 does provide the contracting officer guidance on how to evaluate and complete the percentage for clause FAR 52.236-1 and what should and should not be considered for inclusion in the stated percentage. See the prescriptive language from the clause below that states this. 
     
    52.236-1 -- Performance of Work by the Contractor.
     
    As prescribed in 36.501(b), insert the following clause. [Complete the clause by inserting the appropriate percentage consistent with the complexity and magnitude of the work and customary or necessary specialty subcontracting (see 36.501(a)).]  
     
    In conclusion, generally this clause should be completed and filled in when the solicitation is issued so all contractors can propose or bid on the same requirements/assumptions.  The percentage filled-in can be based on the average for this type of construction project.

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