2218892 Notice of Proposed Rulemaking amending the subcontracting regulations

OFFICE OF CONTRACTING AND PROCUREMENT

NOTICE OF PROPOSED RULEMAKING

                       

The Chief Procurement Officer of the District of Columbia (CPO), pursuant to the authority set forth in sections 204 and 1106 of the Procurement Practices Reform Act of 2010, effective April 8, 2011 (D.C. Law 18-371; D.C. Official Code §§ 2-352.04 and 2-361.06)(2011 Repl.), hereby gives notice of the intent to replace chapter 28 (Subcontracting) of title 27 (Contracts and Procurement) of the District of Columbia Municipal Regulations (DCMR). This rulemaking will replace the District’s regulations for subcontracting.

 

The CPO gives notice of intent to take final rulemaking action in not less than thirty (30) days from the date of publication of this notice in the D.C. Register. 

 

Chapter 28, SUBCONTRACTING, of title 27, CONTRACTS AND PROCUREMENTS, of the DCMR is amended as follows:

 

Section 2800, CONSENT TO SUBCONTRACT, is amended to read as follows:

 

2800                CONSENT TO SUBCONTRACT

 

2800.1             The contracting officer may require consent to subcontract in any instance where the contracting officer determines that it would be in the best interest of the District.

 

2800.2             The contracting officer shall require consent to subcontract in those instances where approval of subcontractors is required by the Procurement Practices Reform Act of 2010, effective April 8, 2011 (D.C. Law 18-371; D.C. Official Code §§ 2-351.01, et seq.) (2011 Repl.)) (Act) or this title.

 

Section 2801, CONTRACTING OFFICERS’ RESPONSIBILITIES, is amended to read as follows:

 

2801                CONTRACTING OFFICER'S RESPONSIBILITIES

 

2801.1             The contracting officer shall ensure that any requirements for consent to subcontract are included in the solicitation for the prime contract.

 

2801.2             The contracting officer's consent to subcontract shall not constitute a determination of the acceptability of the subcontract terms, price or of the allowability of costs, unless the consent to subcontract specifies otherwise.

 

2801.3             The contracting officer shall not consent to subcontract in any of the following instances:

 

                        (a)        When the fee in a cost-reimbursement subcontract exceeds any applicable   fee limitations;

 

                        (b)        When a payment under the subcontract is on a cost-plus-a-percentage-of-   cost basis;

 

                        (c)        When the contracting officer is obligated to deal directly with the   subcontractor;

 

                        (d)       When the results of arbitration, judicial determination, or voluntary             settlement between the prime contractor and subcontractor are made    binding on the District; or

 

                        (e)        When there is a repetitive or unduly protracted use of cost-reimbursement, time-and-materials, or labor-hour subcontracts.

 

2801.4             The contracting officer shall not refuse consent to subcontract merely because the subcontract contains a clause giving the subcontractor the right of indirect appeal to the Contract Appeals Board if the subcontractor is affected by a dispute between the District and the prime contractor.

 

Section 2802, REVIEW OF REQUESTS FOR CONSENT, is repealed.

 

Section 2899, DEFINITIONS, is amended to read as follows:

 

2899    DEFINITIONS

 

2899.1  When used in this chapter, the following terms have the meanings ascribed:

 

Consent to subcontract - the contracting officer's written consent for the prime contractor to enter into a particular subcontract.

 

Subcontract - a contract between a prime contractor (or, in some instances, a subcontractor) and a subcontractor to furnish goods or services for performance of a part of a prime contract or another subcontract, including but not limited to, purchase orders, changes and modifications to purchase orders.

 

Subcontractor - a supplier, distributor, vendor, or firm that furnishes goods or services to or for a prime contractor or another subcontractor.

 

All persons desiring to comment on the subject matter of this proposed rulemaking should submit comments to the Chief Procurement Officer, 441 4^th Street, 700 South, Washington, D.C. 20001.  Comments may be sent by email to [e-mail], by postal mail or hand delivery to the address above, or by calling [phone].  Comments must be received no later than thirty (30) days after the date of publication of this notice in the D.C. Register.  A copy of this proposed rulemaking may be requested at the same address, e-mail, or telephone number as above.