What are the rules for subcontracting under a government contract?

In Delaware, subcontracting rules for government contracts are generally governed by the Federal Acquisition Regulation (FAR). To subcontract under a government contract, the prime contractor, generally the company that was awarded the contract from the government, must enter into an agreement with the subcontractor. Generally, the prime contractor must obtain prior written approval from the government before subcontracting work under the contract. The prime contractor must also ensure that the subcontractors have the necessary qualifications and experience to perform the specified work. The prime contractor must also decide what work the subcontractors will be responsible for, and provide a description of it, called a scope of work, in the subcontract agreement. In the subcontract agreement, the prime contractor must provide a detailed description of how much the subcontractor will be paid for the services, when payment will be made, and what happens if the subcontractor fails to fulfill its obligations. The prime contractor must also provide specific performance requirements and other instructions, such as whether the subcontractor must adhere to the same security requirements as the prime contractor. Finally, the prime contractor must include the Standard Form 33, otherwise known as the Solicitation, Offer and Award, in the subcontract agreement. This form outlines the specific terms and conditions of the subcontract agreement, including details about the actual services to be provided and any other special conditions, such as additional government requirements.

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