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Subcontracting takes place when a supplier contracts out the performance of a part of its business to another, referred to as a “subcontractor.” The subcontractor then uses its own employees and/or resources to undertake that portion of the business or project that the supplier has contracted to it. As such, the subcontractor is a person or company that does part of a job that another supplier is responsible for.
The purchase/SCM team may require the supplier to notify the Postal Service of its intent to subcontract. The notification should be in writing and provide the purchase/SCM team reasons for subcontracting, the desired effective date, and the identity and qualifications of the proposed subcontractor(s). The purchase/SCM team will review the notification and determine whether further examination of the subcontractor(s) is required.
Generally, suppliers are responsible for determining the capability of their subcontractors and are required to provide evidence of a subcontractor’s capability. In some cases however, the purchase/SCM team may decide to assess subcontractors for acceptability. In such cases, the subcontractor capability may be determined using the same criteria used to determine primary supplier capability. Subcontractors must meet the same responsibility and qualification requirements as the supplier.
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