Common use of Notification of Clause in Contracts

Notification of. Subcontract Content Exceeding 70 Percent In compliance with DFARS 252.244-7001, Seller shall maintain procedures to timely notify Buyer, in writing, if Seller changes the amount of lower-tier subcontractor effort after award such that it exceeds 70 percent of the total cost of the Work to be performed under its Subcontract. The notification shall identify the revised cost of the subcontract effort and shall include verification that the Seller will provide added value as related to the Work to be performed by the lower-tier subcontractor(s). This requirement is applicable to each of the Seller’s lower-tier cost-reimbursement subcontracts no matter the value and all letter subcontracts, fixed –price subcontracts, time and materials subcontracts and labor hour subcontracts if the subcontract exceeds the simplified acquisition threshold. Seller shall include the substance of this clause in all sub-tier subcontracts.