If a contractor lacks an approved purchasing system, consent to subcontract is required for which of the following?

When a contractor does not have an approved purchasing system, consent to subcontract is particularly relevant for certain types of contracts. The correct choice, which includes cost-reimbursement, time-and-materials, and letter contracts, is based on the inherent structure and risk allocation of these contract types.

Cost-reimbursement contracts involve the government reimbursing the contractor for allowable costs incurred in performing the contract, along with a fee. Due to the nature of cost-reimbursement contracts, it’s crucial that the government maintains oversight on the subcontractors being utilized, as these costs directly affect taxpayers and the authorization for additional expenditures.

Time-and-materials contracts entail a combination of labor at fixed hourly rates and actual material costs. Similar to cost-reimbursement contracts, the government needs to ensure that the subcontractors are compensated at reasonable rates and that material costs are justifiable.

Letter contracts allow for the start of work before a definitive agreement on prices is finalized, often used when immediate performance is necessary. With these contracts, there are increased risks regarding financial expenditures that may need closer monitoring through subcontract consent.

Maintaining control over subcontracting in these cases helps guarantee that the contractor adheres to compliance with the various regulatory requirements, minimizes risks associated with unexpected costs, and assures that performance standards are met