1. 3.3 Subcontract Administration
– Shawn Hollopeter

2. Subcontracts
Are negotiated agreements between the prime contractor and the subcontractor.
Subcontractors typically provide a commodity at a fixed price.
Depending on the complexity of the deliverable, subcontractors may further subcontract, creating a hierarchy of subcontractors.

3. Diagram of Relationships

4. Privity of Contract
The premise is that only parties to contracts should be able to sue to enforce their rights or claim damages as such.
The buyer should therefore exercise care regarding communication with subcontractors.
The buyer needs to ensure that the scope of the subcontract is clearly documented and well understood by both parties.

5. Buyer’s Role
Should require the prime contractor to receive the governments consent to subcontract in advance of the period of performance.
Ensure that the subcontract includes all legal flow down requirements.
Small Business goals
Ensure that the government obtains appropriate data rights to research or development performed by the subcontractor.
Include the subcontractor in appropriate meetings and reviews.

6. Questions.