B-238919, Apr 13, 1990, 90-1 CPD ***, Office of General Counsel

B-238919: Apr 13, 1990

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This is FAR case No. 90-09. We have no objection to the proposed changes.

B-238919, Apr 13, 1990, 90-1 CPD ***, Office of General Counsel

PROCUREMENT - Contract Types - Subcontracts - Federal procurement regulations/laws - Revision DIGEST: General Accounting Office has no objection to Federal Acquisition Regulation (FAR) case No. 90-09, a proposal to revise FAR section 44.201- 1(d) and the contract clause at FAR section 52.244-1 effectively to raise from $25,000 to $100,000 the threshold for requiring consent to specified types of subcontracts.

Margaret A. Willis

FAR Secretariat

General Services Administration:

This responds to your letter of March 2, 1990, requesting our comments on a proposal to amend Parts 44 and 52 of the Federal Acquisition Regulation (FAR) concerning consent to subcontracts. This is FAR case No. 90-09.

FAR case 90-09 would eliminate the provision currently contained both in FAR section 44.201-1(d)(1) and in subparagraph (b)(1) of the contract clause at FAR section 52.244-1 requiring a prime contractor to notify and obtain the consent of the contracting officer before entering into specified types of subcontracts that exceed $25,000. The effect of this change would be that the specified types of subcontracts (cost- reimbursement, time and materials, and labor hour) generally would require government consent only when they exceed $100,000.

We have no objection to the proposed changes. To be consistent with these changes, however, the instructions that precede the clause at FAR section 52.244-1 should be changed to refer to subparagraphs (b)(1) and (b)(2), not (b)(2) and (b)(3).