For many small government contractors, subcontracting to other companies is essential to successfully performing government contracts work. If you are tempted to simply dust off one of your commercial subcontracts, or sign a subcontract prepared by your subcontractor, you should think again.
The FAR and the SBA small business regulations require your subcontracts to contain a number of mandatory provisions–and you should consider including a number of others to ensure you get a good deal. If you need assistance with your government subcontracts, Steven Koprince and Petefish, Immel, Heeb & Hird, LLP can help.
Preparing Thorough and Compliant Government Subcontracts
Ever flipped through the FAR’s clauses? If so, you know that the FAR requires prime contractors to insert certain provisions (commonly called “flow-downs”) in government subcontracts. Fail to include the flow-downs, and may be in breach of your prime contract. Other FAR and SBA provisions require you to obtain certifications from your subcontractors and limit the amount of work your subcontractors perform.
If you need a compliant government subcontract, Petefish can prepare a thorough, comprehensive subcontract agreement, to include:
- Mandatory FAR flow-downs
- Required subcontractor certifications
- Compliance with the FAR and SBA limitations on subcontracting and control provisions (click for more on how Petefish can help you avoid ostensible subcontractor affiliation problems)
- Comprehensive subcontractor representations and warranties
- Robust termination rights
- “Pass-through” claim provisions, to make sure the subcontractor’s government-related claims are presented to the government, not litigated against you
- Much more
Petefish can help ensure that your subcontract satisfies the government’s requirements and protects your interests if your relationship with your subcontractor goes south.
Reviewing and Negotiating Government Subcontracts
Even if you do not need a government subcontract drafted from scratch, it pays to carefully review subcontracts proposed by teaming partners to make sure they are fair and straightforward. Often, subcontractors ask small prime contractors to sign subcontracts heavily weighted against the prime’s interests–sometimes, even violating FAR provisions.