(a)
(i) In determining special surveillance consent requirements, the contracting officer should consider specific subcontract awards, as well as any individual systems, subsystems, components, technologies, and services that should have contracting officer consent prior to being subcontracted.
(ii) For each planned contract award expected to exceed $1 million in total estimated value (inclusive of options), the contracting officer should consider such factors as the following to determine whether certain subcontracts require special surveillance:
(A) The degree of subcontract pricing uncertainties at the time of contract award;
(B) The overall quality of the contractor's approach to pricing subcontracts;
(C) The extent of competition achieved, or to be achieved, by the contractor in the award of subcontracts;
(D) Technical complexity and the criticality of specific supplies, services, and technologies on the successful performance of the contract; and
(E) The potential impact of planned subcontracts on source selection or incentive arrangements.
(iii) The contracting officer shall document results of the review in the contract file. For contract modifications and change orders, the contracting officer shall make the determination required by paragraph (a)
(ii) of this section whenever the value of any subcontract resulting from the change order or modification is proposed to exceed the dollar threshold for obtaining cost or pricing data (see
FAR 15.403-4(a)(1)) or is one of a number of subcontracts with a single subcontractor for the same or related supplies or services that are expected cumulatively to exceed the dollar threshold for obtaining cost or pricing data.
(iv) In addition, any subcontract under a cost type prime contract shall be identified for special surveillance if consent was not provided at the time of contract award and cost or pricing data would be required in accordance with
FAR 15.404-3(c).
