The Consent to Subcontract Problem

A contractor has a $6,000,000 firm-fixed-price contract with the U.S. Coast Guard for commercial items. The contract was awarded pursuant to FAR Part 12. The contractor and the contracting officer have agreed to change the contract. The contractor has also agreed to proceed with the work before the parties reach final agreement on a price adjustment for the change. The contractor's estimate of the cost of the change is $1,360,000. The parties have agreed that the Government's obligation to the contractor and the contractor's obligation to perform will be limited to $700,000 until the parties reach final agreement. In order to perform the work as changed the contractor must hire a new subcontractor. It has reached agreement with a prospective subcontractor for the purchase of supplies. The contractor wants to award a fixed-price purchase order for 100 units of the supplies at a total price of $650,000. The contractor does not have an approved purchasing system.

Question: Does the contractor need the contracting officer's consent to this contract? Answer (check one): YES NO write syllogistic argument in support