Reference no: EM132943063

Question - A $70 million contract has been awarded by the US Navy to DIVE Inc., to retrofit a guidance system it is a cost plus fixed fee contract that required a small business subcontracting plan , and it also included small business participation requirements. Government property was provided for both the contractor and subcontractors. Certified cost or pricing data were not required. It is likely to include some commercial subcontracts. During the post-award orientation conference with DIVE Inc., what will we impress upon the prime contractor related to mandatory flow-down clauses?

There will be no mandatory flow-down clauses in the commercial subcontracts

The prime contractor must monitor its subcontractors and ensure they are complying with all mandatory flow-down clauses

The government will make sure all the subcontractors understand what they must do to comply with the mandatory flow-down clauses in their subcontracts

The government will require the prime contractor to terminate for default all subcontractors who fail to comply with the mandatory flow down clauses included in their subcontracts