§4710 Limitations on Tiering of Subcontractors

Summary

Require the Federal Acquisition Regulation (FAR) to make executive agencies, except the Department of Defense (DoD), cut down on extra subcontractors and layers that add very little or no value. The FAR must also stop contractors from getting indirect costs or profit on work done by lower-tier subcontractors when higher tiers add very little or no value, while still allowing charges for the direct costs of managing those subcontracts. Applies to cost-reimbursement contracts or task or delivery orders greater than the simplified acquisition threshold (as defined in section 134). DoD may set stricter limits and will keep following its guidance from section 852 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109–364, 10 U.S.C. 2324 note). Executive agency: same meaning as in section 133.