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Case Study G Subcontracting Instructions: Read the scenario below and answer the questions that follow. Our contract with WR Systems is a cost plus fixed

Case Study G Subcontracting Instructions: Read the scenario below and answer the questions that follow. Our contract with WR Systems is a cost plus fixed fee contract valued at $77,603,064.38. As such it includes the basic clause FAR 52.244-2 as incorporated by reference, and FAR 52.244-2 Alternate I, Subcontracts, is incorporated by full text within our contract example, N65236-16- D-8001 (Attachment A). For each set of circumstances below, indicate whether the prime contractor is required to obtain consent to subcontract. Assume that WR Systems does not have an approved purchasing system, and that none of the subcontracts were preapproved. Indicate your response by placing A or B after each question and provide the FAR reference supporting your answer. Questions (Provide FAR, DFAR or other governing regulations or policies that support your answer) 1. Is consent to subcontract required a. WR Systems plans to issue a fixed-price subcontract for $4,000,000. b. WR Systems plans to issue a fixed price subcontract for $200,000. c. WR Systems wants to issue a cost-reimbursement subcontract for $50,000 to a small business concern listed in their approved subcontracting plan. d. R Systems plans to hire a consultant (who will be working as an independent contractor) and pay them on a time-and-materials basis for an amount not-to-exceed $10,000. 2. WR Systems has another contract to provide commercial services to the Government under a labor-hour contract worth $1,000,000. They want to issue a time-and-materials subcontract to a large business for $750,000. Is consent to subcontract required? 3. A different prime contractor (Company XYZ) is headquartered in Turkey. They have a letter contract with a not-to-exceed amount of $2,500,000. They want to issue a time-and-materials subcontract for $25,000 to a subcontractor that appears on the Excluded Parties List System. Is consent to subcontract required?

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