Part 44 2025

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(a) This part prescribes policies and procedures for consent to subcontracts or advance notification of subcontracts, and for review, evaluation, and approval of contractors purchasing systems.
The subcontractors hired by you, the general contractor, are called second-tier contractors. Its not uncommon to have your subcontractors hire additional companies to complete some tasks. Those companies are referred to as third-tier subcontractors.
There are three universally recognised types of sub-contractors in the construction industry. These are domestic subcontractors, nominated subcontractors and named subcontractors. However, there exists a thin distinguishing line between the named and the nominated sub-contractor.
When you are looking at supply chain procurement, there are three types of subcontractor: Domestic Subcontractors. Nominated Subcontractors. Named Subcontractors.
Prime contractors work directly with the government. They manage any subcontractors and are responsible for ensuring that the work is completed as defined in the contract. To become a prime contractor, you must first register your business with the System for Award Management (SAM).
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Major subcontractor means a subcontractor that is awarded a subcontract that equals or exceeds (i) Both the certified cost or pricing data threshold and 10 percent of the value of the contract under which the subcontract is awarded; or. (ii) $55 million.
The primary objective of a purchasing system is to ensure that government contractors have a system in place that contributes to effective subcontract management. An approved purchasing system can relieve contractors of the requirement to obtain consent to subcontract, resulting in time and resource savings.

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