Subcontracting in the Federal Environment

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1 Subcontracting in the Federal Environment Presented by CohnReznick s Government Contracting Industry Practice Kristen Soles, Partner & Rebecca Kehoe, Esq., Manager

2 PLEASE READ This presentation has been prepared for information purposes and general guidance only and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is made as to the accuracy or completeness of the information contained in this publication, and CohnReznick LLP, its members, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. This presentation and its content are the property of CohnReznick LLP and are protected by applicable copyright laws. Any unauthorized use of the information herein will be considered a violation of CohnReznick LLP s intellectual property rights. Unless stated otherwise herein, no part of this presentation may be copied, distributed, or published, in whole or in part, without the prior written agreement of CohnReznick LLP. 1

3 AGENDA Discussion Topics Differences of Subcontracting in the Federal Environment vs. Commercial Why Subcontract? What to look for in your Subcontractor What should be in your Teaming Agreement What should be in your Subcontract How to Administer your Subcontract How to Closeout your Subcontract 2

4 DECISION TO SUBCONTRACT Small Business Subcontracting Requirements Specialties Needed Cost Savings Staffing Ramp Up Client Requests 3

5 WHERE TO FIND QUALIFIED SUBCONTRACTORS Internal Corporate Database Procurement Technical Assistance Program Offices-PTAP MD (mdptap.org) Out of the University of Maryland VA (vaptap.org) Out of the George Mason University DC (dcptac.dc.gov) Out of the Dept of Small and Local Business Development Contracting Officers where work is to be performed SBA Database (SBA.gov/pro-net/search/dsp_dsbs.cfm) Federal Procurement Data System Next Generation (FPDSng.com) Central Contractor Registry: CCR.gov Excluded Parties Listing System: EPLS.gov 4

6 PRIME CONTRACTOR REVIEW OBLIGATIONS Is Subcontractor: Financially capable of performing SOW Technically capable of performing SOW Capable of managing workforce and working under Prime with other Subcontractors Capable of managing size and complexity of subcontract (accounting and time keeping systems) 5

7 TEAMING AGREEMENT Initiated and signed during the Proposal Process Include Non-disclosure Requirements Include General Scope of Work (SOW) Include Draft Subcontract Agreement with Terms and Conditions Include type of Subcontract to be Issued Fixed Price Time and Material Cost Plus 6

8 GOVERNMENT PURCHASING REQUIREMENTS Consent to Subcontract, is it required? RFP/RFQ Draft Subcontract with Pass Through Clauses Source Selection Criteria Price Technical Competitive vs. Non-Competitive (Sole Source) Awards Documentation/File Keeping Letter Contracts/Definitization Requirements 7

9 SUBCONTRACT AWARD Subcontract Document should include, at a minimum: Type of Award: Fixed Price, Time and Material, Cost Plus Dollar Value of Award Period of Performance Exceptions to Standard Clauses/Other Exceptions Pass Through Clauses Standardized Invoice Format (to mirror Prime Invoice requirements) Dispute Resolution Subcontractor Release of Claims Clause Subcontract Brief See handout for format compliant with DCAA 8

10 SUBCONTRACT ADMINISTRATION Post Award Orientation/Coordination of all Subcontractors Invoice Processing and Payment Modifications Disputes Performance Monitoring Government Property 2nd and 3rd Tier Subcontracting 9

11 SUBCONTRACT CLOSEOUT Policy and Procedures Subcontractor Release of Claims Final Invoice and Payment Performance Evaluation and Grade 10

12 QUESTIONS/COMMENTS 11

13 RESOURCES Rebecca Kehoe, Esq., Manager (703) Kristen Soles, Partner (703) GovCon360 keeps you abreast of the ever-changing regulatory environment that is Government contracting. From reference materials, like searchable pdf copies of the FAR and DCAM, to our past Lunch and Learn seminar slide decks and thought pieces on industry matters, we ve got it covered. Subscribe to our RSS feed to receive short alerts on recent industry changes. It s always been our job to help our clients maintain a competitive advantage by staying ahead of the curve. This website is an extension of the services we ve been providing for over 35 years by putting useful resources and up-to-date information at your fingertips. 12

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