1. Introduction
a. Why Subcontract?
b. Subcontractor Statistics
c. Rules Requiring Reporting of First-Tier Subcontractor Information
2. Key Legal Issues in Federal Subcontracting
a. Definitions – What is a "Subcontract" under the FAR?
b. Privity with the Government (and exceptions to privity)
c. Legal Implications of being a being a federal "subcontractor"
1. Applicable law
2. Federal vs. State Jurisdiction
3. Subcontractor Claims
3. Subcontracting Policies and Procedures
a. FAR Subpart 44.2: Government Consent to Subcontracts
b. FAR Subpart 44.3: Approved Purchasing Systems and CPSRs
i. Contractor Business Systems
ii. Proposed DFARS Rules regarding Contractor Business Systems
c. FAR Subpart 44.4: Commercial Subcontracts
4. Selecting Subcontractors
a. Recurring Issues in the Subcontractor Selection Process
1. Confidentiality Agreements
2. Teaming Agreements
3. Competition in Subcontracting
4. Subcontractor "Protests"
5. Make or Buy Issues
6. Special problems presented by soliciting participation of foreign Subcontractors
7. Special problems presented by purchasing commercial items under a non-commercial prime contract
b. Subcontract Types
1. FFP, Fixed Quantity
2. IDIQ
3. Requirements
4. BOAs
5. T&M/LH
6. Regular FFP
7. Cost reimbursable
8. Incentive subcontracts
9. Commercial item vs. non-commercial item subcontracts
10. Services
11. Construction
12. ADPE
13. Federal Supply Schedule
14. O&M
5. Negotiating Subcontracts
a. Negotiating Subcontract Terms and Conditions
1. Philosophical approach
2. Format of terms and conditions
3. Identifying relevant contract requirements
4. Tips to negotiating a subcontracting
5. Internal negotiation controls
b. Contract Flowdowns
1. Mandatory vs. Necessary Flowdowns
2. The
Christian Doctrine
4. Potential impact of OFCCP decisions on subcontractor flowdowns
3. Commercial item subcontracts
c. Negotiating "Standard" Subcontract clauses
d. Negotiating "Non-Standard" Subcontract clauses
e. Subcontractor Certifications
6. Managing Subcontracts
a. Federal requirements for Primes to manage subcontractors
b. Recurring Subcontractor Issues
TEAMING AGREEMENTS
7. Purpose of Teaming Agreements
- Purposes of Teaming
- The Prime’s Perspective
- The Subcontractor's Perspective
- Small Business Subcontracting
8. Teaming Regulations
a. FAR Subpart 9.6
9. Preliminary Considerations
- Choosing the Teammate
- Government Approval
- Choosing the Structure of the Relationship
- Advance Confidentiality Agreements
- Exclusivity vs. Non-Exclusivity
- Intended Effect of Agreement
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- Agreements to negotiate in good faith
- Agreements to agree
- Absolute duty to place subcontract
g. Cost Issues
h. Anti-Competition Issues
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- Horizontal Restraints
- Vertical Restraints
i. Affiliation Issues
j. Teaming under MAS Contracts
10. The Teaming Agreement
a. Recitals
b. Definitions
c. Structure
d. Scope
e. Proposal Efforts and Content
-
- Areas of responsibility
- Preparing the drafts
- Decision authority
- Duty to submit
- Timing
- Negotiations with customer
- Relationship to subcontract price
f. Termination
-
- Convenience
- Default
g. Expiration
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- Survival
- Precedence
h. Effecting the Subcontract
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- Price
- Schedule
- Structure
- Workshare
- Flowdown clauses
- Termination
- "Boilerplate"
- Precedence
- Options
- Data Rights
i. Intellectual Property
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- Contribution to team
- Patents and data
- Use of intellectual property
- Licensing
- Field of use restrictions
- Derivative property
j. Damages/Remedies
k. Disputes
l. Raiding
m. Others