Overview
This section outlines the procedures and limitations for an Administrative Contracting Officer (ACO) when disclosing the approval or disapproval status of a proposed subcontractor’s purchasing system to a prime contractor.
Key Rules
- Discretionary Disclosure: Upon request, the ACO is permitted to inform a prime contractor whether a proposed subcontractor's purchasing system has been approved or disapproved.
- Mandatory Cautionary Statement: If status is disclosed, the ACO must explicitly warn the contractor that the Government is not responsible for providing updates regarding any future changes to that approval status.
- Non-Review Status: If a subcontractor's purchasing system has never been reviewed by the Government, the ACO must inform the contractor of this specific fact.
Practical Implications
- Due Diligence: While prime contractors can leverage Government data for risk assessment, they cannot rely on the Government for ongoing monitoring; the burden of maintaining oversight of a subcontractor’s compliance remains with the prime.
- Risk Mitigation: Obtaining this status helps prime contractors determine if "consent to subcontract" requirements might be waived or streamlined under FAR 44.2.