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
