Order of Precedence - Subcontract
Started by govtacct02 · Apr 7, 2016 · 3 replies
- gOriginal post
govtacct02
Apr 7, 2016 · 10y ago
A CPFF subcontract (not construction) is being closed out (we are the sub) and we need to understand what the order of preference is : PO or subcontract document, with regard to period of performance. There is nothing in the subcontract to state order of precedence. The PO indicates the extended period of performance, and it added value to the subcontract. The subcontract was not modified when the PO was modified.
Thanks.
- j
ji20874
Apr 7, 2016 · 10y ago
The Government's decision to modify its prime contract is a matter between the Government and the prime contractor. Whether or not the prime contractor decides to modify a subcontract is a matter between the prime contractor and the subcontractor. The first does not necessarily force the second. I am unable to see any order of precedence matter here.
- R
Retreadfed
Apr 7, 2016 · 10y ago
I agree with ji's statement as a general proposition. However, I am somewhat confused by this statement " The PO indicates the extended period of performance, and it added value to the subcontract. The subcontract was not modified when the PO was modified". How did the PO add value to the subcontract without modifying it?
- g
general_correspondence
Apr 7, 2016 · 10y ago
govtacct02
Did the subcontract state their would be releases' or PO's against the agreement? I would think if the PO added additional funding to the overall subcontract value, and the money and period of performance was executed at the PO level, the latest document governs both the value and period of performance, but I can't say for certain without seeing the contract.