What is the difference between a subcontractor and a vendor?
Vendors sell products and services to small and large businesses, while subcontractors provide services under contract to prime contractors or other subcontractors.
Does the far apply to subcontractors?
Subcontractor status is important to prime and subcontractors. A federal prime contractor is required to flow-down multiple Federal Acquisition Regulation (“FAR”) clauses to its subcontractors. Significantly, these clauses apply regardless of whether they appear in the applicable subcontract or vendor agreement.
How does the Far define subcontract?
Subcontract means any contract, as defined in FAR subpart 2.1, entered into by a subcontractor to furnish supplies or services for performance of the prime contract or a subcontract. It includes, but is not limited to, purchase orders, and changes and modifications to purchase orders.
Is a subcontractor a vendor or customer?
A Vendors are those people or companies that you pay money to, such as a store, utility, landlord, or subcontractors who do work for you. On the other hand, Customers are people who owe you money for products purchased or service rendered.
What is a vendor subcontractor?
A vendor provides off-the-shelf, commercially-available goods or services. The vendor will provide these same goods or services to anyone who pays the vendor. A subcontractor is a person or organization who assists in the prime contractor in performing programmatic functions.
Who is considered a vendor?
A vendor, also known as a supplier, is a person or a business entity that sells something. Large retail store chains such as Target, for example, generally have a list of vendors from which they purchase goods at wholesale prices that they then sell at retail prices to their customers.
Who does far apply to?
The FAR applies to all acquisitions as defined in part 2 of the FAR, except where expressly excluded.
Does the far apply to federal contractors?
The FAR Does Not Apply to Federal Contractors, but the Terms and Conditions of Federal Contracts Do! Another common misconception is that the entire FAR is incorporated into every federal contract. The FAR prescribes standard contract clauses to insert into contracts (and provisions to insert into solicitations).
What is a federal contract or subcontract?
A federal subcontractor is a company that does business with another company that holds direct contracts with the Federal Government. As a part of doing business with the Federal Government, both federal contractors and subcontractors, assume certain obligations.
Are contractors considered vendors?
Differences between a Vendor and a Contractor A vendor is a person or a business who sells products, usually similar, to different customers. On the other hand, a contractor is a person assigned specific tasks in an organization that has a set completion date.
What is the difference between vendor and payee?
Suppliers are companies. They may issue you an invoice that you pay, usually via cheque, online transfer, direct debit, or by standing order, using the Invoice or Direct Debit purchase type. The Payee is the person who paid for the purchase and who now needs reimbursing.
Are You a subcontractor or a vendor?
Sometimes the answer is easy— e.g., you are a subcontractor when a prime contractor contracts directly with a vendor or supplier (hereinafter “vendor”) to perform a federal contract.
What is a sub contract under far?
subcontract means any contract, as defined in FAR subpart 2.1, entered into by a subcontractor to furnish supplies or services for performance of the prime contract or a subcontract. It includes, but is not limited to, purchase orders, and changes and modifications to purchase orders.
When does a prime contractor not inform a vendor of subcontractor status?
But the lines become less clear when a prime contractor does not inform the vendor that the subcontract is being entered into in furtherance of a federal government contract or where the vendor supplies goods that the prime contractor uses to perform commercial and government contracts. Why Is Subcontractor Status Important?
How do I identify sub-contracts?
Subcontracts may be identified by subcontract number or by class of items ( e.g., subcontracts for engines on a prime contract for air-frames).