Managing Subcontracts

Complete Seminar Details

• The keys for successfully managing Federal Government subcontracts
• Applicable requirements
• Anticipating and correcting problems
• Recognizing and protecting yourself from the risks
• Preparing and evaluating subcontract proposals
• Proven negotiation strategies
• Action plans to continuously improve subcontract performance
• Sharply managing applicable flowdown provisions...and more

Contracting for goods and services is a way of life for businesses. When a contract is issued for goods or services under a government prime contract, it becomes a subcontract.

As a subcontract, the transaction becomes subject to additional requirements imposed on the prime contract by Federal Law as provided by the Federal Acquisition Regulations and Agency Supplements.

These additional requirements cover all aspects of the contractual relationship including the decision to buy, selection of the supplier, pricing the contract, terms of the contract, quality, payments and even completion and closeout.

How you approach subcontracting (prime or sub) and how you resolve issues that arise during performance depends not only on what you are — a seller or a buyer; industry representative or Government official; contract administrator or lawyer — but also on what you know and how well you understand the unique demands of the subcontract process. With knowledge, you can guide the process with minimum problems.

The focus of this program is on the effective management and administration of subcontracts and complex purchase orders. The benefits of attendance will extend across the full life phase of the subcontract — from the presolicitation phase to final payment. Topics covered will provide guidance on development and management including:

• Finding suppliers and competition
• Teaming agreements and data rights
• Make or buy issues
• Effective flowdown of prime clauses
• Tailoring terms and conditions
• Impact of the Uniform Commercial Code
• Hierarchy of clauses
• Managing project risks
• Type of contracts/subcontracts
• Acceptance and payment
• Commercial Item subcontracts
• Intercompany transactions
• Organization and role of subcontracts/purchasing
• Socioeconomic requirements
• Representations and certifications

And many other applicable topics/issues.

The Course Curriculum

• The Acquisition Team
• Roles and Responsibilities
• Subcontract or Purchase Orders?
• Matrix Management

SUBCONTRACT MANAGEMENT SYSTEM

• Development of the Requirement
• Contract or Proposal
• Authorization for Purchase
• Formal Source Selection/Bid
• Validity of Proposals

THE STATEMENT OF WORK

• Development
• Content
• Clarity
• Offerors
• Deliverables

SUBCONTRACT INFORMATION

• Requirements for Valid Contracts
• Government Approval
• What Constitutes Agreements

APPLICABLE LAWS AND REGULATIONS

• State Law as Applicable
• Federal Laws and Regulations
• Federal Acquisition Regulation
• Federal Agency Supplements
• Uniform Commercial Codes

UNIFORM COMMERCIAL CODE

• Applicability to Subcontract
• Gap Filler
• Battle of the Forms
• Informality
• Offers
• Acceptance

SUBCONTRACTS FLOWDOWNS

• Requirements
• Type of Prime Contracts
• Type of Subcontracts
• Mandatory v. Optional v. Desired
• Reference of Full Text
• Custom or Modified
• Representations and Certifications

HIERARCHY OF TERMS AND CONDITIONS

• General Terms and Conditions
• Prime Contract FAR Flowdowns
• Special Contract Terms
• Special Program Terms
• Special Company Terms

CONSIDERATIONS FOR FLOWING DOWN PRIME CLAUSES

• Type of Prime Contract
• Type of Subcontract
• Method of Contract/Subcontract Award
• Subject Matter of Subcontract
• Dollar Value of Subcontract

SPECIAL TOPICS/ISSUES

• Socioeconomic Programs
• Cost or Pricing Data
• Commercial Item Purchases
• Quality/Acceptance
• Changes/Claims
• Data Rights
• Termination/Breach
• Teaming Agreements
• Options

Sponsor Background:

Instructor(s):

Instructor Background:

With a background in the manufacture of complex weapon systems, he has proposed and managed contracts with complex design to cost and life cycle cost requirements. He has a working knowledge of support and logistics requirements and risk/cost assessments. His courses in cost/price analysis and proposal negotiation stress the cost driver, non-value added requirements, and the integrated product team approach to maximizing performance and minimizing technical risk with lower total cost of ownership.

He has taught courses in government contracting and has presented numerous public seminars. He is an instructor at the American Graduate University and San Diego State University for Courses in Proposal Preparation and Pricing, Negotiations, Cost/Price Analysis, Financial Management and Subcontracting.

Mr. Southerland is a Certified Professional Contracts Manager, a Fellow of the National Contract Management Association, and a member of the Association of Government Accountants. He has a BS from Purdue University and an MS from the University of Southern California.