If administered properly, subcontract management promotes consistency in managing subcontracts across functions, mitigates risk to the organization and contract, and can increase profitably. Defining expectations across procurement and program management personnel is a critical component of subcontract management.

Management of subcontracts can be identified through a subcontract lifecycle. Understanding specific tasks in managing the subcontract, as well as requirements and assignment of responsibilities during each lifecycle phase, will aid compliance. Knowing the specific tasks and responsibility within the organization is critical to success. Review the following phases and corresponding tasks:

Pre-award phase

  • Identify capability versus capacity and the costs and the costs and benefits
  • Define technical, performance and/or deliverable requirements
  • Identify pricing and funding considerations
  • Identify subcontract types based upon the type of work
  • Identify potential vendors

Award phase

  • Perform the technical and price reasonableness evaluation as part of the proposal analysis
  • Identify past performance/reputation considerations
  • Evaluate representations and certifications
  • Validate debarment status
  • Document award

Post award

  • Maintain subcontract files from both procurement and program management perspectives
  • Ensure compliance with the subcontracts administrative requirements
  • Review and approve/rejecting subcontract deliverables
  • Obtain, review, and act upon subcontractor status reports
  • Project cost analysis and reporting include:
  • Obtain and report subcontractor costs at the proper levels
  • Incorporate subcontractor costs into program level on a timely basis
  • Identify how subcontractor utilization is impacting performance, funding and contract levels

Contract close-out

  • Verify completion and acceptance of SOW and all deliverables
  • Manage government furnished property
  • Obtain waivers and releases
  • Finalize indirect rates

For more information on this topic, or to learn how Baker Tilly government contractor specialists can help, contact our team.

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