48 CFR Part 1644 — Subcontracting Policies and Procedures

PART 1644—SUBCONTRACTING POLICIES AND PROCEDURES Authority: 5 U.S.C. 8913; 40 U.S.C. 486(c); 48 CFR 1.301. Source: 52 FR 16043, May 1, 1987, unless otherwise noted. Subpart 1644.1—General 1644.170 Policy for FEHB Program subcontracting. (a) General policy. (b) Consent. (1) All subcontracts or subcontract modifications that equal or exceed the threshold are subject to audit under FAR 52.215-2 “Audit and Records-Negotiations” if based on cost analysis, and subject to the provisions of 48 CFR 1646.301 and 1652.246-70 “FEHB Inspection” if based on price analysis. (2) In determining whether the amount chargeable to the FEHB Program contract for a given subcontract or modification equals or exceeds the $550,000 threshold, the following rules apply: (i) For initial advance notification, the carrier shall provide the total cost/price for the base year. (ii) The carrier shall provide advance notification of any modifications, options, including quantity or service options and option periods, and renewals of “evergreen contracts” that cause the total price to equal or exceed the threshold. OPM's review will be of the modification(s), itself, but documentation for the original subcontract will be required to perform the review. (iii) The $550,000 threshold will be adjusted by the same amount and at the same time as any change to the threshold for application of the Truth in Negotiations Act. [70 FR 31382, June 1, 2005, as amended at 71 FR 3016, Jan. 19, 2006] Subpart 1644.2—Consent to Subcontracts 1644.270 FEHBP contract clause. The clause set forth at section 1652.244-70 shall be inserted in all experience rated FEHBP contracts. [62 FR 47576, Sept. 10, 1997]

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