PARA| entre 2 y 10 años se recomienda usar los siguientes valores de

DFARS § 252.244-7001(c); see FAR § 44.303(h).

1. Do the contractor’s policies require advance notice to the government of subcontract award and government consent, when required by the prime contract?

a. Is such notice given and consent received?

b. Are the contractor’s buyers aware of the status of the contractor’s purchasing system (i.e., approved or unapproved) and the implications that status has on advance government notice and consent? FAR § 52.244-2. c. Do the contractor’s policies require the buyer to review the

terms of the prime contract prior to subcontract award to determine whether advance notice and government consent are required? FAR § 52.244-2.

Compliance criteria:

(2) Ensure that all applicable purchase orders and subcontracts contain all flowdown clauses, including terms and conditions and any other clauses needed to carry out the requirements of the prime contract; . . . (16) Notify the Government of the award of all subcontracts that contain

the FAR and DFARS flowdown clauses that allow for Government audit of those subcontracts, and ensure the performance of audits of those subcontracts; . . .

(19) Establish and maintain policies and procedures to ensure purchase orders and subcontracts contain mandatory and applicable flowdown clauses, as required by the FAR and DFARS, including terms and conditions required by the prime contract and any clauses required to carry out the requirements of the prime contract; . . .

2. Does the contractor require the individual signing an agreement on behalf of a supplier to demonstrate his or her authority to execute agreements on behalf of the supplier?

3. Does the contractor have standard terms and conditions that are used whenever making a purchase under a government prime contract or subcontract that:

a. Provide a mechanism for the contractor to obtain additional information from the supplier to meet reporting requirements, as necessary?

b. Obtain intellectual property rights consistent with statutory and regulatory requirements?

c. Permit the level of surveillance and quality assurance necessary to ensure compliance under the prime contract? d. Contain dispute resolution provisions that are in the

contractor’s best interest and treat contracting officer final decisions as binding on the supplier?

e. Do not inappropriately restrict a supplier’s right to do business with the government? FAR § 52.203-6. 4. Does the contractor ensure that specific agreements have all

terms necessary to implement and carry out the requirements of the related prime contract? DFARS § 252.244-7001(c)(2), (19). a. Are technical requirements consistent with the requirements

of the prime contract? FAR § 44.202-2(a)(11).

b. Are prime contracts reviewed to ensure that all mandatory flowdown clauses are included in subcontracts?

c. Does the contractor include provisions that, while not mandatory, may be essential to ensuring compliance, including:

(i) Termination for convenience and default? (ii) Progress payments?

(iv) Limitation of costs or limitation of funds provisions? (v) Defective pricing liability?

(vi) Obligations under the Defense Priorities System or the Defense Materials System?

(vii) Warranty obligations? (viii) Technical data rights? (ix) Changes?

(x) Assignment of claims?

(xi) Domestic source rules (Buy American Act/Trade Agreements Act)?

(xii) Prohibitions on gratuities and other non-mandatory ethics-related clauses?

(xiii) Government property? (xiv) Technical data?

(xv) Subcontractor cost or pricing data? (xvi) Stop work orders?

d. Are all agreements reviewed to eliminate clauses that will conflict with provisions in the prime contract?

5. Are subcontracts for commercial items consistent with the requirements of FAR Part 12?

a. Do commercial item subcontracts contain all required flowdown clauses? FAR § 52.244-6; DFARS § 252.244- 7000.

b. Does the prime contractor only include in commercial item subcontracts “a minimal number of additional clauses necessary to satisfy its contractual obligations?” FAR § 52.244-6.

6. Are all agreements that are executed under terms other than the contractor’s standard government contract terms and conditions reviewed by individuals with sufficient knowledge and authority to determine whether the terms of the agreement are consistent with government contract requirements?

7. If the contractor’s relevant government contract is subject to FAR § 52.203-13 (Contractor Code of Business Ethics and Conduct), are suppliers required to notify the contractor of reportable events under the clause to facilitate timely disclosure to the government? FAR § 52.203-13(c)(2)(ii)(F).

8. Does the contractor notify the government when it awards a subcontract that contains FAR and DFARS flowdown clauses that allow for government audit of those subcontracts, and ensure the performance of audits of those subcontracts? DFARS § 252.244- 7001(c)(16).

9. When a subcontract is subject to CAS, does the contractor take appropriate actions (see FAR § 44.202-2(a)(12); FAR § 44.303(h); FAR §§ 52.230-6(l)-(n)), including:

a. Stating that the subcontract is subject to CAS in the body of the subcontract?

b. Flowing down the appropriate CAS clause(s)? c. Notifying the government of the award?

d. Obtaining a subcontractor’s CAS Disclosure Statement or a certification that the subcontractor has submitted a CAS Disclosure Statement to the government?

e. Notifying the government of any changes to a subcontractor’s cost accounting practices?

10. Does the contractor engage in teaming agreements when seeking government contracts? If so:

a. Does the teaming agreement bind the subcontractor to prices agreed to between the contractor and the government?

b. Does the teaming agreement ensure that only fair and reasonable prices will be offered and that, if needed, the subcontractor will support its prices with cost or pricing data?

c. Does the teaming agreement ensure that the contractor controls all contact with the government and negotiation of the subcontract?

d. Does the teaming agreement provide that resulting agreements/arrangements made pursuant to the teaming agreement may be subject to government approval under FAR Subparts 9.6 and 44.2?

e. Does the teaming agreement make clear the division of work under the work statement for the subcontract? I. Foreign Purchases and Performance

FAR Pt. 25, § 52.225; DFARS Pt. 225, § 252.225.

1. Does the contractor monitor the content of items (or construction) to ensure compliance with domestic preference requirements? FAR §§ 52.225-1 et seq.; DFARS §§ 252.225-7000 et seq. a. Do contracting personnel know what domestic preference

requirements are contained in the relevant prime contracts? FAR §§ 52.225-1, -5, -9, -11; DFARS §§ 252.225-7001, -7021.

Compliance criteria:

1. Contractors must comply with all relevant domestic preference requirements.

2. Export control regulations must be complied with.

b. Are specialty metals procured only from acceptable sources under contracts with the DOD? DFARS §§ 252.225-7008, -7009, -7010.

c. Are procurement personnel able to identify prohibited sources for content under government contracts?

d. Does the contractor require suppliers to provide information regarding location of performance and country of origin of supplies?

e. If required by contract provisions implementing the Buy American Act or the Trade Agreements Act, or other specialty domestic content requirements, does the

contractor monitor the content of end items (or construction) that will be delivered to the government to ensure

compliance with domestic preference requirements? f. Does the contractor have a mechanism for requesting

waivers from the government prior to the acquisition of foreign components (or construction materials) or, if necessary, when inappropriate materials are included in end products (or construction) that will be delivered to the government?

2. If goods or information of any sort are transferred to suppliers as a part of the procurement process, does the contractor ensure compliance with export laws and regulations?

a. Does the contractor have an export control system with an empowered official that reviews all exports (including those performed as part of the procurement process) to ensure export compliance?

b. Are procurement personnel aware that providing technical data to foreign nationals or foreign entities, including specifications or other information that may be necessary to the procurement process, may be considered an export?

c. If a procurement will involve export controlled information, are foreign national employees prevented from supporting the procurement? If not, does the contractor obtain an export license prior to providing the employees any export controlled information?

d. Do procurement personnel work in conjunction with the contractor’s export control group and/or legal organization to ensure that such exports comply with applicable laws and regulations?

e. If the contractor will provide foreign suppliers with material or other goods as part of performance, are such activities coordinated with contractor’s export control group and/or legal organization to ensure that such exports comply with applicable laws and regulations?

f. Does the contractor require that suppliers comply with all export control laws and regulations?

3. When purchasing from foreign parties, does the contractor comply with all relevant import laws and regulations?

4. Does the contractor have a mechanism to prevent it from doing business with foreign entities prohibited under federal laws or regulations? FAR § 52.225-13.

a. Does the contractor monitor and comply with all U.S. sanctions and trade restrictions?

b. Prior to contracting with a foreign entity, does the contractor review various government lists of foreign parties with which it may not conduct business?

5. Does the contractor ensure that its suppliers take into account other considerations for foreign transactions such as:

a. Whether the ACO has authorized duty-free entry of the product?

b. Whether the supplier has been evaluated for Foreign Corrupt Practices Act (“FCPA”) compliance and inclusion of prohibitions against violation of the FCPA?

c. Responsibility for taxes and duties?

d. In what currency will payment be made? Is an exchange rate specified?

e. Does the contract indicate what law will apply to the contract? Is a procedure in place to resolve contract disputes?