MAIL BAG: WHAT DO I NEED TO TELL MY SUBS?
Loyal reader T. Swift of Nashville writes, “I’m a commercial item prime contractor with many subs. What contract clauses do I need to flow down to these companies?” Great question, T. Sub-contractor flow-downs can indeed be confusing. Fortunately, the Federal Acquisition Regulations do provide some clarity, though you should be careful to check the terms of your own contract. FAR 52.212-5(e) has a list of 18 flow down clauses you must pass along to your subcontractors. Included in this list are clauses covering various equal opportunity requirements, Service Contract Labor Standards, and rules on employment eligibility. Two newer rules also make the flow-down list: Minimum Wages Under Executive Order and Combatting Trafficking in Persons. The regulations allow you to pass along other clauses as may be necessary to execute your specific contract, but absent a requirement for specifics, the 18 in the FAR are fairly inclusive. If you ever run into a sub that won’t agree to these clauses, T. you can tell them, “We are never, ever getting back together.” A link to the FAR clause is here: https://www.acquisition.gov/sites/default/files/current/far/html/52_212_213.html