[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR44]



[Page 824]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 44_SUBCONTRACTING POLICIES AND PROCEDURES--Table of Contents

 

                  Subpart 44.2_Consent to Subcontracts

 

44.203  Consent limitations.



    (a) The contracting officer's consent to a subcontract or approval 

of the contractor's purchasing system does not constitute a 

determination of the acceptability of the subcontract terms or price, or 

of the allowability of costs, unless the consent or approval specifies 

otherwise.

    (b) Contracting officers shall not consent to--

    (1) Cost-reimbursement subcontracts if the fee exceeds the fee 

limitations of 15.404-4(c)(4)(i);

    (2) Subcontracts providing for payment on a cost-plus-a-percentage-

of-cost basis;

    (3) Subcontracts obligating the contracting officer to deal directly 

with the subcontractor;

    (4) Subcontracts that make the results of arbitration, judicial 

determination, or voluntary settlement between the prime contractor and 

subcontractor binding on the Government; or

    (5) Repetitive or unduly protracted use of cost-reimbursement, time-

and-materials, or labor-hour subcontracts (contracting officers should 

follow the principles of 16.103(c)).

    (c) Contracting officers should not refuse consent to a subcontract 

merely because it contains a clause giving the subcontractor the right 

of indirect appeal to an agency board of contract appeals if the 

subcontractor is affected by a dispute between the Government and the 

prime contractor. Indirect appeal means assertion by the subcontractor 

of the prime contractor's right to appeal or the prosecution of an 

appeal by the prime contractor on the subcontractor's behalf. The clause 

may also provide that the prime contractor and subcontractor shall be 

equally bound by the contracting officer's or board's decision. The 

clause may not attempt to obligate the contracting officer or the 

appeals board to decide questions that do not arise between the 

Government and the prime contractor or that are not cognizable under the 

clause at 52.233-1, Disputes.



[69 FR 76358, Dec. 20, 2004]