Overview
This section prohibits prime contractors from including provisions in subcontracts that unreasonably restrict a subcontractor's ability to sell their supplies or services directly to the Federal Government.
Key Rules
- Statutory Compliance: Implements 10 U.S.C. 4655 and 41 U.S.C. 4704, which mandate that subcontractors remain free to engage in direct government sales.
- Preservation of Legal Rights: The policy does not prevent contractors from asserting legitimate rights authorized by other laws or regulations (e.g., intellectual property or patent rights).
- Threshold for Application: Contracting officers must include the governing clause in all solicitations and contracts that exceed the simplified acquisition threshold (SAT).
- Required Clause: FAR 52.203-6, "Restrictions on Subcontractor Sales to the Government," is the mandatory vehicle for this policy.
- Commercial Exception: When acquiring commercial products or services, the contracting officer must use Alternate I of the clause.
Practical Implications
- Prime contractors cannot force subcontractors into "exclusive dealing" arrangements that would bar the government from bypassing the prime to buy directly from the source.
- This ensures the government maintains access to competitive pricing and multiple acquisition channels, preventing prime contractors from acting as restrictive gatekeepers for specialized components or services.