What are the rules for subcontracting under a government contract?

Under a government contract in New Hampshire, there are rules governing subcontracting. When a separate entity is used to provide services or products to meet the obligations of the government contract, the subcontractor is sometimes referred to as a “tier 2” or third-party contractor. Subcontractors must meet the same performance and payment requirements that were established in the government contract. The contractor is responsible for ensuring that subcontracts include these requirements. The subcontractor must also comply with all applicable regulations, including those related to safety, security, fair labor standards, and more. The contractor must obtain prior written approval from the government for all subcontracts. This approval must include an explanation for why the services or products are only provided by the subcontractor. In addition, the subcontractor must be paid in accordance with the rates and terms established in the contract. The subcontractor is also responsible for providing the government with certain documentation, such as performance measurements and certifications. The contractor is required to retain records related to the subcontractor, including payment information and invoices. Overall, subcontracting under a government contract in New Hampshire involves a lot of paperwork and coordination between the contractor and subcontractor. It’s important to ensure that all compliance requirements are fulfilled to avoid potential problems and costly penalties.

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