FAR 44.2—Subpart 44.2

Consent and advance notification requirements.

Contracting officer’s evaluation.

Consent limitations.

FAR 44.203 explains the limits on a contracting officer’s consent to subcontracting and approval of a contractor’s purchasing system. Its main purpose is to make clear that consent or system approval is not, by itself, a government finding that the subcontract’s terms, price, or costs are acceptable, unless the contracting officer expressly says otherwise. The section also identifies several types of subcontract provisions the contracting officer must not approve, including certain cost-reimbursement arrangements, cost-plus-a-percentage-of-cost pricing, direct-dealing obligations with the subcontractor, clauses that bind the Government to private dispute outcomes, and repetitive or overly extended use of cost-reimbursement, time-and-materials, or labor-hour subcontracts. Finally, it addresses indirect appeal clauses, explaining when they should not be rejected and what limits must remain in place. In practice, this section protects the Government from unintended liability or pricing commitments while preserving reasonable subcontract dispute mechanisms between prime contractors and subcontractors.

Contract clauses.

FAR 44.204 tells contracting officers which subcontract-related clauses must or may be included in solicitations and contracts, and in what situations. It covers the mandatory use of the Subcontracts clause at 52.244-2, including when to use Alternate I for certain civilian agency cost-reimbursement contracts, and identifies specific exceptions where that clause is not required. It also addresses the optional use of 52.244-4 for architect-engineer contracts and the mandatory use of 52.244-5, Competition in Subcontracting, in negotiated procurements expected to exceed the simplified acquisition threshold unless stated exceptions apply. In practice, this section is about controlling subcontracting risk, preserving government visibility into subcontracting decisions, and promoting competition and oversight where the Government has a strong interest in how prime contractors select and manage subcontractors.