Overview
This section establishes the specific meanings for "subcontract," "subcontractor," and "United States" as they apply to FAR Subpart 3.10, which governs Contractor Code of Business Ethics and Conduct.
Key Rules
- Broad Subcontract Scope: A subcontract is defined as any agreement at any tier (prime or lower) to provide supplies or services for the performance of a contract.
- Inclusive Subcontractor Definition: The term encompasses a wide variety of entities, including suppliers, distributors, vendors, and firms, regardless of their tier in the supply chain.
- Geographic Jurisdiction: "United States" is specifically defined to include the 50 States, the District of Columbia, and all outlying areas.
Practical Implications
- Contractors must recognize that ethics and disclosure requirements apply deep into the supply chain; even a simple purchase order with a vendor or distributor is legally considered a "subcontract" under these rules.
- The broad definitions prevent prime contractors from bypassing ethics compliance obligations by outsourcing work through intermediaries or lower-tier vendors.