Right-sizing flow-downs for small purchases

Sylvia:

The terms and conditions in your contract (prime or sub) will determine your obligation to flow-down provisions and clauses. What does the contract convey? What does the person who awarded you the contract say?

Additionally, is the prime contract yours? Is the prime contract a FAR Part 15, Commercial Item contract? Is your contract, if not the prime, a commercial item contract?

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My question is whether I am able to use a streamlined micro-threshold purchase process and a relatively short list of FAR and DFARS clauses associated with a commercial item, or do I need to apply the longer list of FAR and DFARS and do a more robust purchase order compliance package substantiation because of the aggregate contract spend that has occurred with this supplier under the same prime contract? I am trying to assess whether I need to flow-down a longer list of customized flow-down requirements (including Buy American Act, DPAS, debarment, etc.,) from the prime contract because this micro-purchase tips the scale and becomes in reality a large purchase over the simplified acquisition threshold.

You've got a subcontract for a commercial item. Read FAR Subpart 44.4, Subcontracts for Commercial Items and Commercial Components, and see if it answers your questions about flowdowns.

Is the jist of your question whether this additional purchase from an existing subcontractor would be considered an inscope change under the subcontract (aggregate, consisting of commercial and non-commercial items or all commercial items) or a separate, stand alone, competitive, $3k purchase (a separate subcontract)?

joel hoffman said:

Is the jist of your question whether this additional purchase from an existing subcontractor would be considered an inscope change under the subcontract (aggregate, consisting of commercial and non-commercial items or all commercial items) or a separate, stand alone, competitive, $3k purchase (a separate subcontract)?

Our contract is not for a commercial item, but the item we are purchasing in support of our FAR 15 contract is a commercial item for a separate item, stand alone, and distinct from the previous $200,000 we spent with the supplier.

sylvia said:

Our contract is not for a commercial item, but the item we are purchasing in support of our FAR 15 contract is a commercial item for a separate item, stand alone, and distinct from the previous $200,000 we spent with the supplier.

Sylvia:

FAR Subpart 44.4 applies. Read it. Your prime contract should include the clause at FAR 52.244-6, Subcontracts for Commercial Items.

As for the fact that the sum of a series of contracts with a contractor exceeds the micro-purchase threshold, if you can show that it was the result of circumstances, and not of you splitting requirements, then I wouldn't worry.

Read the clauses in your prime contract and flow them down as instructed. That's the only advice I know to offer you.

Sylvia, if FAR 52.244-6 is in your prime contract, that should go a long way toward answering your question.