Item 101: Federal Acquisition Regulation (FAR) Flowdown Clauses Matrix Including One-Year of Updates
FAR, Civilian Department Agency Supplemental Acquisition Regulations & DFARS/DoD Organization Flowdown Clause Matrices & Subscription Saves Time, Money & Aggravation!
Increase Your Compliance/Decrease Your Risk
Are you ‘Flowing’?
The requirement to flowdown certain Federal Acquisition Regulation (FAR) Clauses, Defense Federal Acquisition Regulation Supplement (DFARS) Clauses, and Civilian Department/Agency Acquisition Regulation Supplements by Civilian and DOD Federal prime contractors to subcontractors is an important contract administration and compliance issue. The requirement applies to both large and small businesses. Small businesses are not exempt from flowdown requirements. Noncompliance can be costly and can even lead to contract termination and could potentially result in litigation between the prime contractor and its subcontractors. The Federal Government can be very unforgiving in contractual matters.
Flowdowns are especially important to DOD contractors. DFARS Clause 252.244-7001, Contractor Purchasing System Administration—Basic (MAY 2014), sets forth system criteria for contractors’ purchasing systems. An important criterion is the purchasing system must ensure purchase orders and subcontracts contain flowdown clauses including terms and conditions and any other clauses necessary to carry out the requirements of the prime contract. The clause also requires contractors 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, including the requirements of DFARS 252.246-7007, Contractor Counterfeit Electronic Part Detection and Avoidance System, if applicable. If a contractor’s purchasing system is disapproved, the contracting officer may cause payments to be withheld from the contractor.
Flowdown Clauses require prime contractors and subcontractors include certain clauses in subcontracts (and even purchase orders) at certain dollar values. Some must always be flowed down. For example, FAR Clause 52.204-23, a new clause introduced in July 2018, is required to be flowed-down regardless of the dollar value of the purchase order or subcontract and is even applicable to commercial item acquisitions. Many of these will impact flowdowns, by updating clauses, possibly deleting existing and adding new flowdown requirements.
Is your company compliant? Don’t chance the risk of noncompliance! The FAR alone contains over 600 provisions and clauses, with over 80 of them requiring flowdown. Some prime contractors have attempted to comply with flowdown requirements by incorporating all the Clauses from their prime contracts and flowing down to their subcontracts. This practice creates problems with compliance, as subcontractors cannot comply with clauses intended solely for prime contractor compliance.
Are your company’s suppliers and subcontractors in compliance? Some clauses require further flowdown, by tier subcontractors to lower tier suppliers and subcontractors. Prime contractors are responsible for the flowdown compliance of their respective suppliers and subcontractors. The matrices will help guide them with compliance and assist in your compliance oversight.
The FAR, DFARS, and civilian department/agencies supplemental acquisition regulations have numerous matrices used by contracting officers in determining required provisions and clauses for inclusion in prime contracts. But there are no such matrices for prime contractors to use in determining which clauses must be flowed-down in subcontracts and purchase orders issued to their subcontractors, and when those clauses are required to be flowed-down.
Reviewing each clause from the FAR, DFARS, and each Federal department/agency could take days, or weeks, especially for the uninitiated. Do you know which clauses in your contracts or subcontracts, and under what circumstances and at what dollar thresholds they are required to be flowed-down? Don’t guess–increase your contract compliance!
FedBizAssist developed matrices which will save you significant time in contract administration and help improve your compliance and reduce your flowdown compliance risk. The matrices are sold as one-year subscriptions, so they are kept up-to-date, and are a great resource and time saver—your contract administrators will be glad you provided them with these tools!! The matrices are provided in PDF and Microsoft Excel Formats.
Subscription Pricing (Includes One-Year of Updates for each Matrix)
Item No. 101—FAR Matrix–$199*
Item No. 102—DFARS Matrix–$169**
Item No. 103—Both Matrices for 294.40 (a 20% savings)***
*Item 101 contains the Federal Acquisition Regulation (FAR) Matrix, and the flowdown clauses from 25 Civilian Department/Agency Supplemental Acquisition Regulations. Click here to see the matrices contained in Item 101
**Item 102 contains the Defense Federal Acquisition Regulation Supplement (DFARS) Matrix, and the flowdown clauses for the Departments of the Air Force, Army, Navy, and the Defense Logistics Agency. Click here to see the matrices contained in Item 102
***Item 103 contains all matrices and represents the best value–a 20% savings. Click here to see the matrices contained in Item 103