Flowing Down Federal Acquisition Regulations (FARs And DFARS) To Your Subcontractors: Prevailing Practice, The Risks Of Lazy Standardisation And How To Do It Better

Published: 20 Mar 2014 Average Rating: 4.3 / 5 Print

Author: John-Paul Story, Head of Commercial, Rolls-Royce PLC

The flowdown of Government regulations is managed poorly by many companies. Whether by accident or otherwise, Buyers routinely flow down incomplete, out-of-date lists of regulations; usually accompanied by some modifying language which seeks to reflect the relationship of the parties but instead often creates uncertainty, ambiguity or inequity. Conversely Sellers routinely accept these standard flowdowns without thinking through the implications and risks.

Starting with some typical examples of prevailing practice, this webinar will illustrate how even seemingly-innocuous flowdowns can bestow Buyers with unintended or unreasonable powers, create unimagined problems for Sellers and may actually contravene the regulations themselves.

Abraham Lincoln famously said that if he had eight hours to cut down a tree, he'd spend six hours sharpening his axe. Yet companies increasingly pursue ostensible efficiencies in their purchasing / subcontracting processes without considering the consequential resultant inefficiencies (whether measured in terms of disputes, non-compliance or the breakdown of supplier relationships). The webinar will therefore consider how flowdown could be managed better; addressing the trade-off between the efficiencies of standardised flowdown and the precision of bespoke tailoring.

Finally, we consider the resource and time implications for companies wanting to flow down regulations more appropriately and how these can be justified.

Whether you're a large or a small company and whether you're a prime contractor or a subcontractor this webinar will make you fundamentally reconsider what regulations you're prepared to accept in your contracts and how you flow them down to your suppliers.

Our Expert

John-Paul Story, Head of Commercial, Rolls-Royce PLC

John-Paul Story has worked for Rolls-Royce plc for over 25 years; primarily in the defence aerospace sector. Since 2001 he has led the team responsible for Rolls-Royce UK's negotiations with the US Government and US prime contractors for defence aerospace contracts ranging from the $1bn+ Joint Strike Fighter LiftSystem development contract to innovative, multi-year commercial (FAR 12) support contracts and from engine production contracts to small R&D programmes. However the views expressed in the webinar are strictly his personal opinion.

He has presented at numerous conferences and seminars on various issues associated with the FARs and DFARS and has recently published an e-book available from Amazon 'A Contractor's guide to the FARs and DFARS. What to accept and what to flow down' (providing detailed guidance on these issues for over 220 FARs and DFARS).


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