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Subcontractors: Protecting Workshare and Other Valuable Tips

Details That Make a Difference

Since the Prime Contractor generally has more control than the Subcontractor (Sub), it’s important that the Sub leverage their input as much as possible. Recently, I worked with a client and was reminded of two lessons.

First, while the prime contractor needs to flow down certain DFAR and/or FAR clauses, the sub should make the most of its opportunities to exert its influence while negotiating the subcontract. If there is a “Termination for Convenience” clause, one suggestion is to add “This clause can be exercised if and only if the Government terminates the Prime’s Contract.” This prevents the Prime from taking away work-share from the sub for no valid reason.

Second, many subs look unfavorably on being named “Key Personnel” in the contract. After all, generally the company needs to give 30 days advance notice and get approval in writing for replacement personnel. On the flip side, this can help protect the sub’s work-share since it is more difficult to substitute personnel.

Business Development: Quick Tips and Reminders

1.  After a decision has been made to review or bid on a solicitation, the company should create a new distribution list. Not only does this ensure everyone gets all relevant communication, it reinforces the importance of all Team Members from the Administrative Staff to the VP of Business Development. In this competitive environment, companies should use every advantage to create the strongest team possible. A stronger team will most likely lead to a better performance.

2. Lessons learned – The company should meet and discuss the proposal process a day (or a few days at most) after the proposal gets submitted. What went well? Should any other person/people have been involved? Who did a fabulous job and really stepped up? What could have been improved? For example, did gathering salary data take longer than anticipated? Was there adequate time to compare the Technical Volume to the Business Volume and edit, if necessary? Once again, in this competitive environment, regardless of win or lose, you can at least continually improve on the process which may decrease resources (time) and increase wins.

3. When reviewing resumes, use this website for calculating years of experience. Time and Date Duration – In addition, it can be used to calculate the date for the proposal validity period (e.g. 170 days from submission date).

Note:  You can access this website by selecting the Resource tab on www.streamlinegovcon.com. (There’s additional helpful information there as well.)


This blog is for informational purposes only. None of the content is, or will be deemed to constitute legal opinions or legal advice.