Limits on awarding work to affiliates
Started by pricelesspearl · Aug 19, 2016 · 2 replies
- pOriginal post
pricelesspearl
Aug 19, 2016 · 9y ago
Is anyone aware of any limits placed on how much work an affiliate can perform on a contract when the parent company is the actual contract holder? I do not believe the Excessive Pass Through clause would apply since it is an IOT and not a subcontract.
Let me know if you need more detail. Thanks in advance.
- C
C Culham
Aug 22, 2016 · 9y ago
SB set aside?
- p
pricelesspearl
Aug 22, 2016 · 9y ago
No, it is not a SB set aside. It is an IDIQ. Both entities are foreign owned. The contract holder was set up with a security agreement so that it could perform classified work. In the IDIQ proposal, the intent to have the affiliate perform any non-classified work was made clear, and the same for any Task Order proposals. We have been very upfront on the issue.
Initially, we got some push back on charging G&A for both entities, but won that argument. Now they are complaining about how much work the affiliate is doing, but haven't offered any legal support (yet) for not allowing it. I am just trying to get in front of any argument they may make.