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section45.502

Subcontractor and alternate prime contractor locations

Overview

This section establishes the procedures for delegating property administration responsibilities when government property is located at subcontractor facilities or alternate prime contractor sites.

Key Rules

  • Subcontractor Support Delegation: The prime property administrator (PA) may request support from another contract administration office for subcontractor oversight, but must typically obtain prime contractor consent first.
  • Dispute Resolution: If a prime contractor withholds consent for support property administration at a subcontractor site, the PA must refer the issue to the Contracting Officer for a final decision.
  • Acceptance of Findings: The prime PA is required to accept the findings of the delegated support PA and must notify the prime contractor of any system deficiencies or review results regarding the subcontractor.
  • Alternate Prime Locations: No prime contractor consent is required for the government to delegate support administration to a different contract administration office if the property is located at an alternate site belonging to the prime contractor.

Practical Implications

  • While the government respects the prime contractor's relationship with its subcontractors, it maintains a mechanism to escalate oversight issues to the Contracting Officer to ensure accountability for government property.
  • Prime contractors are held responsible for their subcontractors' property management systems and must be kept informed of government findings to ensure overall contract compliance.

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