Your reading of FAR 44.201-1(b)(2)(i) is correct. In your case, the subcontract does not exceed the greater of the SAT or 5% of the prime contract amount, so consent to subcontract for that subcontract is not required. If you worked in a civilian agency, the "greater" qualifier for DOD would not apply, and the $27.5M figure in your acquisition would require consent to subcontract.
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