Subcontracting Process

Version: 3.0
Last Updated: 06/11/2019

Confidential and Proprietary – All Rights Reserved

Approval Date: 06/11/2019

Approved By: J. Weiss
DCN: VMD-CON-002
Template Version: 2.0

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 Subcontracting Process
Version: 3.0
Approved By: J. Weiss, 06/11/2019

Table of Contents
1 Scope & Purpose...............................................................................................................................1

2 Roles & Responsibilities....................................................................................................................1

3 Inputs.................................................................................................................................................1

4 Outputs..............................................................................................................................................1

5 Entrance Criteria................................................................................................................................2

6 Exit Criteria.......................................................................................................................................2

7 Process Flow......................................................................................................................................2

8 Procedure...........................................................................................................................................3
8.1 Subcontractor Designation................................................................................................................................3

8.2 Subcontract Preparation....................................................................................................................................3

8.3 Amendments to Subcontracts...........................................................................................................................3

8.4 Subcontract Agreement....................................................................................................................................3

8.5 Technical Oversight..........................................................................................................................................3

8.6 Subcontract Close-Out......................................................................................................................................3

9 Risk Considerations...........................................................................................................................4

10 Reference Documents........................................................................................................................4

APPENDICES.............................................................................................................................................5
Appendix A: Acronyms....................................................................................................................................................5
Appendix B: Documents and Records..............................................................................................................................6
Appendix C: Reporting Thresholds..................................................................................................................................8

List of Tables
Table 1: Roles and Responsibilities.................................................................................................................................................................1
Table 2: Acronyms.......................................................................................................................................................................................... 5
Table 3: Records.............................................................................................................................................................................................. 6
Table 4: Reporting Thresholds......................................................................................................................................................................... 8

List of Figures
Figure 1: Process Flow Diagram...................................................................................................................................................................... 3

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 Subcontracting Process
Version: 3.0
Approved By: J. Weiss, 06/11/2019

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 Subcontracting Process
Version: 3.0
Approved By: J. Weiss, 06/11/2019

Revision History
Rev. # Release Date Author Reviewer(s) Approver Description of Change
3.0 06/14/19 M. Parimi CRB M. Couto Updated to reflect the VMD Corp Branding
2.0 04/07/17 S. Ovalle CRB S. Ovalle Updated to reflect new standard template and
include inputs, outputs, entrance criteria, exit
criteria, risk considerations
1.0 03/07/17 S. Ovalle CRB S. Ovalle Baseline version of document

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 Subcontracting Process
Version: 3.0
Approved By: J. Weiss, 06/11/2019

1 Scope & Purpose

Based on the opportunity, one or more companies may be needed to provide services in support of a specific program effort. These
companies are hereinafter referred to as “Subcontractors”.

This document formalizes an association with another organization to perform a part of the work based upon an award is a
“Subcontract”. The party performing the effort under a subcontract agreement is the “Subcontractor”.

2 Roles & Responsibilities

The table below presents the roles and responsibilities required for the successful implementation of this process.

Table 1: Roles and Responsibilities

Role Responsibility
Contracts Administrator Prepares subcontract agreement, negotiates terms, executes and manages changes to
agreement, close out subcontract
Sponsor/Program Director Submits request for subcontractor, reviews invoices, verifies subcontractor’s work,
include subcontractor status in customer status report
Subcontractor Reviews subcontract, executes agreement, submits invoices, submit final documents as
required
Customer Awards work to Prime

3 Inputs
Inputs are the policies, processes, documents, records, environmental or organizational factors, or any other factors that exist prior
to entering the process and influence process performance. The process relies on the following inputs:

 Contract
 Statement of Work (SOW) or Performance Work Statement (PWS)
 Non-disclosure Agreement (NDA)
 Federal Acquisition Regulations (FAR)

4 Outputs
Outputs are the processes, documents, records, or other factor that the process produces or changes. The process generates the
following outputs:

 Executed Subcontract Agreement

 Task Order
 Invoices
 Final Fiscal Report (optional)
 Final Technical Report (optional)

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 Subcontracting Process
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Approved By: J. Weiss, 06/11/2019

5 Entrance Criteria
Entrance criteria describe the conditions that should exist prior to a process being initiated. The entrance criteria for the process
include:

 Executed contract with Customer

 Vendor evaluation completed, if required

6 Exit Criteria
Exit criteria describe the conditions that should exist prior to concluding the process. The exit criteria for the process include:

 Contract is concluded or terminated

 Contract close-out is completed

7 Process Flow
The figure below provides a visual representation of the process. Further explanation of the process activities follows.

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 Subcontracting Process
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Approved By: J. Weiss, 06/11/2019

Figure 1: Process Flow Diagram

8 Procedure
8.1 Subcontractor Designation
If the subcontractor is designated in the proposal and a subsequent award is issued to the contractor, it is not essential to
comply with the procurement prerequisites for competitive bidding or sole source justification since the Sponsor already
endorsed the selection.

There are two methods of selecting a subcontractor: competitive bidding or sole source procurement. Competitive
bidding is a common method of subcontractor selection. This method requires solicitation of proposals from an
individual or a number of companies and a final selection of a subcontractor is made from those responding. The
company is selected based on technical merit and cost objectives. When the procurement requires performance from a
sole entity because services or expertise are not available from other sources, the Contractor will identify the need for the
services and why the selected subcontractor is the sole source available for the required services.

8.2 Subcontract Preparation

When a fully executed award is received from the Customer, a subcontract agreement is prepared. In preparing the
subcontract, it is important to observe the prime contract terms and conditions and to flow down the appropriate clauses.
Once the subcontract is prepared, it is sent to the subcontractor for review. The subcontractor may want to negotiate
changes or request clarification of the terms and conditions. The Contracts Administrator negotiates and coordinates
those requested changes. Once negotiations are complete both parties execute the agreement.

8.3 Amendments to Subcontracts

During the term of a subcontract, it may be necessary to change or modify one or more of the terms and conditions of the
subcontract. Amendments to the subcontract, such as time extensions or increases to funding are accomplished through
an amendment to the subcontract. It should always be noted in any amendment that “all other terms and conditions” of
the original subcontract remain unchanged. The amendment is the medium that clearly states the changes and generally
provides for the signature approval of both parties.

8.4 Subcontract Agreement

Upon full execution of the subcontract agreement, Task Orders may be issued to the subcontractor against which
invoices may be submitted. This mechanism is used to encumber subcontract funding against the Prime Contractor’s
awards and allow the Contractor to monitor and track payments against the subcontractor’s award value.

The subcontractor shall submit invoices for payment as outlined in the terms and conditions of the subcontract
agreement. The invoice should be reviewed to ascertain that the program number is referenced and correct, costs are
properly allocated and the amount invoiced is within the cost of the subcontract and charges were incurred within the
period of performance of the prime contract. Invoices are to be submitted to the Accounts Payable Department for
payment.

8.5 Technical Oversight

The Program Director is responsible for verifying that the subcontractor’s work is conducted and completed in a timely
manner. Subcontractor’s progress reports may be requested and are usually incorporated in the overall reports submitted
to the Customer. Supplier evaluations are conducted at the end of the engagement or annually.

8.6 Subcontract Close-Out

In accordance with the terms of the agreement, the subcontractor may be required to submit one of more of the following
documents upon completion of the Subcontract:

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 Subcontracting Process
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Approved By: J. Weiss, 06/11/2019

o Final invoice 
o Final fiscal report 
o Final technical report 

9 Risk Considerations
 None

10 Reference Documents
The following documents relate to this process:

 ISO 9001:2015 International Standard; Clause 8.4 – Control of externally provided processes, products and services 
 Quality Management System Manual
 Control of Documented Information Process
 Corrective Action Process
 Internal Audit Process
 Risk Management Process
 Operations Process
 HR/Recruiting Process
 Business Development/Proposal Management Process
 Subcontracting Process
 Supplier Evaluation Process

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 Subcontracting Process
Version: 3.0
Approved By: J. Weiss, 06/11/2019

APPENDICES
Appendix A: Acronyms
The following table presents the definitions for acronyms used in this document.

Table 2: Acronyms

Acronym Definition
NDA Non-disclosure Agreement
PWS Performance Work Statement
SOW Statement of Work
TA Teaming Agreement

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 Subcontracting Process
Version: 3.0
Approved By: J. Weiss, 06/11/2019

Appendix B: Documents and Records

The following table presents the documents and records generated from the process, including the file format and location of the record(s).

Table 3: Records

Type Controlled? If controlled, Frequency

(Document/ Record Name Location
(Yes/No) of Review
Record)
Document Subcontracting Process Restricted Shared Yes Annually
Drive\Subcontractors
Document NDA – Master Document Restricted Shared Drive\NDAs Yes Annually
template
Document Subcontract – Master Document Restricted Shared Yes Annually
template Drive\Subcontractors
Document TA – Master Document template Restricted Shared Yes Annually
Drive\Subcontractors
Document Task Order template Restricted Shared Yes Annually
Drive\Subcontractors
Record Executed NDA In contract file on Shared No N/A
Drive\NDAs and TAs (electronic)
and in Contracts File Cabinet in
Contracts Office; Archived
contracts are in the contracts file
cabinet in the file room
Record Executed Subcontract In contract file on Shared No N/A
Drive\Subcontractor\[Supplier
folder] (electronic) and in
Contracts File Cabinet in
Contracts Office; Archived
contracts are in the contracts file
cabinet in the file room
Record Executed TA In contract file on Shared No N/A
Drive\NDAs and TAs (electronic)
and in Contracts File Cabinet in
Contracts Office; Archived
contracts are in the contracts file
cabinet in the file room.
Record Executed Task Order In contract file on Shared No N/A
Drive\Subcontractor\ [Supplier
folder] (electronic) and in
Contracts File Cabinet in
Contracts Office; Archived
contracts are in the contracts file
cabinet in the file room 

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 Subcontracting Process
Version: 3.0
Approved By: J. Weiss, 06/11/2019

Appendix C: Reporting Thresholds

The following table presents the compliance thresholds for the measures, if any, that are tracked for this process. The corrective action
process must be followed for all Items that do not meet the threshold.

Table 4: Reporting Thresholds

Item Threshold Notes

No Items to report

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