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  • Question

    What is the definition of "sub-contract" for purposes of reporting to FSRS? Does it include suppliers?


    Answer

    The body of the FAR clause at 52.204-10 provides the only useful definition of a subcontractor and a subcontract.  There is no alternative definition of subcontract that applies to all sections of the FAR.  You must work within the definition of a “subcontract” provided in the clause.  If the supplier is a first tier provider of the goods or services and the supplier is not included as part of  “the Contractor’s supplier agreements with vendors, such as long-term arrangements for materials or supplies that would benefit multiple contracts and/or the costs of which are normally applied to a Contractor’s general and administrative expenses or indirect cost”, then you must include the supplier in the reporting requirements.
    52.204-10 – Reporting Executive Compensation and First-Tier Subcontract Awards.
    As prescribed in 4.1403(a), insert the following clause:
    Reporting Executive Compensation and First-Tier Subcontract Awards (Oct 2016)
    (a) Definitions. As used in this clause:
    “Executive” means officers, managing partners, or any other employees in management positions.
    “First-tier subcontract” means a subcontract awarded directly by the Contractor for the purpose of acquiring supplies or services (including construction) for performance of a prime contract. It does not include the Contractor’s supplier agreements with vendors, such as long-term arrangements for materials or supplies that would benefit multiple contracts and/or the costs of which are normally applied to a Contractor’s general and administrative expenses or indirect cost.
     
     

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