Section 809 Panel - Recommendation #62 - Update the Federal Acquisition Regulation and Defense Federal Acquisition Regulation Supplement to Reduce Burdens on the Department of Defense's Commercial Supply Chain to Decrease Cost, Prevent Delays, Remove Barriers, and Encourage Innovation Available to the Military Services

Abstract

Many commercial and nontraditional firms are concerned about the compliance burdens imposed by flow-down clauses from both the government and prime contractors. Contractors commercial supply chains may not comply with these requirements, or they may make the business decision to forgo government business rather than incur the cost of ensuring compliance. In either case, the Department of Defense may be denied access to the innovations available to the nation's adversaries. Recommendation 62 addresses this concern by extending to subcontracts the simplifications in Section 809 Panel Recommendations 1 and 2, which apply to prime contracts for commercial products and services.