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Q&A
Q&A on subcontracting criteria and reporting processes
1:25:35
·
149 sec
Council Member Amanda Farías inquires about the criteria for subcontracting in food service contracts for NYC shelters, focusing on the required percentages of work performed by prime contractors versus subcontractors. Raymond Medina provides information on the typical practices and requirements.
- Medina explains that prime contractors must have control of the project, typically performing the majority of the work.
- For food contractors, the prime contractor should perform the majority of the work.
- MWBE goals for subcontracting can be as high as 30% of the contract.
- Subcontractors are bound by the same contract conditions as the prime contractor and must report to the prime, who then reports to the agency.
- The discussion highlights the complexity of contract management and the importance of proper oversight in subcontracting arrangements.
Amanda Farías
1:25:35
I just have one follow-up question.
1:25:37
In terms of subcontractors and criteria, is there mandated by the contract for the large vendor to have a percentage of the services rendered from the vendor themselves that they have to provide and then what's the criteria that's set for the subcontracting percentage?
1:25:55
Like could I be a large vendor and only do 10% of the administrative work but then hire x amount of subcontractors.
1:26:03
Can you guys walk us through what's that criteria and if there's a an either a funding or a total amount that then the subcontractor oversees and how they have to report back to the large contractor for the city to receive the data or the, you know, services rendered.
Raymond Medina
1:26:25
Sure.
1:26:25
Happy to.
1:26:26
So to my understanding, prime contractors have to have control of the project.
1:26:32
That means that typically the majority of they're self performing the majority of the work.
1:26:38
That exact percentage will vary depending upon the type of contract and the general conditions of that contract specifically.
1:26:45
For instance, an event producer might sub out a lot of their work, but in the case of food contractors as we're discussing, it should be the majority of the work.
1:26:55
If there's an MWBE goal, that will typically be a pretty significant percentage of that subcontracting, as much as 30%, say.
1:27:05
So you wouldn't see them having an MWB goal of 30% and subbing 30% otherwise because then they'd clearly not be in control of the contract or self performing.
1:27:15
Does that answer your question?
Amanda Farías
1:27:17
Yeah.
1:27:17
That somewhat answers it.
1:27:18
I mean, I guess the only question that I have that doesn't directly connect back to or wasn't answered is how does then the what's the process of the subcontractor reporting backward to the prime contractor that we then are, you know, with the exhaustive part of them having to monitor and enforce and manage, you know, all of the criteria that they have to check off?
Raymond Medina
1:27:41
So so the subcontractor is bound by the same contract conditions, and Mehak, my colleague here from Mox, will alert me if I'm misspeaking, but my understanding is that they're subject to the same conditions of the contract as the prime.
1:27:54
So, whatever the prime is needs to provide or report on, that same information is being reported by the sub up to the prime and then to the agency.