When is a subcontractor considered “a party” to “an existing USG contract” for purposes of ATF Ruling 2016-5?

For purposes of this ruling, a subcontractor is considered a party to the USG contract if: 

(a) the contract expressly authorizes subcontractors to participate in the manufacturing process;

(b) consent to subcontract has been obtained, where required; and

(c) upon request, either the prime contractor or subcontractor produces a copy of the subcontract, award, purchase order, or satisfactory documentation containing the prime USG DOD contract number and demonstrating that the sub-contractor assents to all “flow down” compliance requirements and limitations of the USG contract.

Last Reviewed January 25, 2017