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  • Question

    If the government is getting ready to award a government work authorization (GWA), can the government direct a prime to use a particular subcontractor that manufactures equipment that meets/exceeds the government's requirements. For instance, if the prime has been using a particular subcontractor for years, but this subcontractor has a history of increased costs for obsolescence and redesign, can the government direct the prime to choose another subcontractor with a larger business base in which obsolescence costs are dramatically decreased? Please let me know if you can point me to the FAR/DFAR for help in answering this question.


    Answer

    This response is based on the information provided.  We suggest you discuss with your contracting and finance team, program manager and/or legal department as appropriate.

     

    Yes the Government may direct a source.  The key point to note is that once the Government directs the source, it has little ground to argue with the prime should the subcontractor not perform to standard.  This ability to direct is greatly curtailed in a commercial environment.

     

    We suggest an approach that encourages/convinces the prime to make the decision to use a different subcontractor.

     

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