Contract Admn Procedure #4.6.4 Rev 1



Title:Subcontract AdministrationEffective Date:Rev. LevelSupersedes:Revalidated:Next revalidation:Jan. 7, 20161Jan. 5, 2014Jan. 7, 2017Description of Changes:Rev. 1 – Identify use of Subcontract instrument types and implement requirements for submission of incurred costs per FAR 52.216-7.PurposeThis document sets forth the procedure to perform subcontract administration.ReferencesFederal Acquisition Regulation, Subpart 17.2 – OptionsFederal Acquisition Regulation, Part 44 – Subcontracting Policies and ProceduresFederal Acquisition Regulation, Subpart 44.2 – Consent to SubcontractFederal Acquisition Regulation, Subpart 44.3 – Contractor Purchasing System ReviewFederal Acquisition Regulation 52.216-7 – Allowable Cost and PaymentFederal Acquisition Regulation 52.244-2 – SubcontractsFederal Acquisition Regulation 52.244-4 – Subcontractors and Outside Associates and Consultants (Architect-Engineer Services)Federal Acquisition Regulation 52.244-5 – Competition in SubcontractingFederal Acquisition Regulation 52.244-6 – Subcontracts for Commercial ItemsFederal Acquisition Regulation 52.301 – Solicitations Provisions and Contract Clauses (Matrix)GeneralThe AMS Procurement Department has a responsibility to manage the subcontract through the entire lifecycle from inception to closeout while maintaining compliance with all Government and AMS requirements. It is AMS’s standard to comply with Federal Acquisition Regulation, Part 44 policies and procedures for consent to subcontract or advance notification of subcontracts, and for review, evaluation of the AMS purchasing system.ProcedureDefinitions“Subcontract” is considered any contract entered into by a subcontractor who will furnish supplies or services for performance of an AMS prime contract and/or AMS subcontract. It includes, but is not limited to subcontracts, modifications to subcontracts, purchase orders, changes and modifications to purchase orders. RequisitionerThe Requisitioner is responsible for supplying the following information:? Specific instructions, statement of work (SOW), and other documentation required in order to complete a Purchase Requisition (PR) form which may be used for all subcontract agreements. Once all necessary requisitioning approvals have been received, the Requisitioner forwards the PR with all related documentation to the Procurement Department.? Whether the PR is fully funded or incremental funding up to an authorized funding ceiling is provided in the PR.The Procurement DepartmentThe Procurement Department shall maintain adequate and sufficient file documentation from receipt of the PR through closeout of the purchase order/subcontract. The procurement file checklist will assist the ProcurementDepartment to ensure that the required steps are addressed and required documents are on file in accordance with AMS Procurement Procedure Manual and Government regulations.Two major phases the Procurement Department shall perform are the pre-award phase and the post award phase. The pre-award phase includes, but is not limited to, communication with the AMS PM, the Requisitioner, Accounting Department, and supplier/subcontractors. During the pre-award phase, the Procurement Department shall actively participate in developing qualified sources, coordinating source selection, developing and preparing RFPs or RFQs that include appropriate terms and conditions, clauses, and representations and certifications consistent with the prime contract. The Procurement Department shall also evaluate potential supplier/subcontractor’s proposal responses and prepare documentation for award. The Procurement Department is further responsible for:? Soliciting the prospective subcontractor to obtain, at a minimum: labor rate(s), availability, background information (i.e., a resume and other information that may be required by the prime contract).? Ensuring, for Cost-type solicitations, the subcontractor submits fully loaded rates by labor category for the period of performance cited in the RFP. Rates quoted must be DCAA approved. As stated in the AMS RFP, the Subcontractor must include in their proposal a statement that rates quoted, and invoiced upon award, are DCAA-approved forward pricing rates.? Determining the appropriate subcontract instrument. Generally, teammates during to a major proposal initiative that provide significant labor support after award of the Prime Contract will be awarded a Fixed Price, Fixed Price Level of Effort, Time & Materials, or Labor Hour depending on the scope of work to be performed and ability to control specific tasks and deliverables. The Procurement Department wil use the long form subcontract instrument for the major labor subcontractors. Major construction subcontractors will use the long form Design – Consultant or Design Builder instrument. ? If customer consent and/or notification are required under the terms of the prime contract, coordinating with AMS Contracts to ensure compliance with prime contract provisions.? Forwarding copies of the agreement to the subcontractor for countersignature. The Buyer signs the agreements and returns a copy of the executed agreement to subcontractor.? The Procurement Department is also responsible for administering any changes and modifications, assisting Accounts Payable to resolve a supplier/subcontractor invoice or payment issues, and responding to any problems identified during the performance of the subcontract.? The Procurement Department is also responsible to ensure that for Time & Materials subcontracts exceeding $700,000.00, issued under Prime Contracts subject to Truth in Negotiations Act (TINA) that the subcontractor submits an incurred cost submission (for each year) in accordance with FAR 52.216-7.The Procurement Department should be familiar with FAR Subpart 44.303 (Extent of the Review), which provides an overview of the evaluation specifics that emphasize the need to adequately document the procurement file.The Procurement Team is responsible for identifying the applicable clauses flowed to the Subcontract document by the Prime Contract and required by the FAR 52.301 – Solicitations Provisions and Contract Clauses (Matrix).Procurement Procedure Manual ................
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