What does FAR 28.102(b)(1) mean or apply too, the DFARS seems to suggest subcontracts greater than 30K???
FAR 28.102 is applicable to construction contracts.
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FAR 28.103 is applicable to "other than construction contracts" and is not applicable to your question.
FAR 28.102-1(b)(1) requires (shall) payment protection be obtained prior to contractor performance starting and authorizes the contracting officer to accept more than one form of payment protection. The forms of payment protection the contracting officer will accept much be included in solicitation and resulting contract through FAR clause 52.228-13, Alternative Payment Protections.
That said, it appears from your question that the two contracts have already been awarded. If the above clause is included in the contract, then the contractor must provide one of the forms of payment protection. However, if the above clause was not included in the solicitation and resulting contract, you will have to modify the contract to include the clause and probably provide the contractor equitable adjustment for obtaining and providing the payment protection.
If the criteria in DFARS 228.102-1(1) is met, the pay protection must be obtained by the prime from the subcontractor(s).
Yes, you do need to obtain one form of payment protection.