What is the prime contractor responsible for?

• A. Managing contract performance,including planning, placing, and administering subcontracts as necessary to ensure the lowest overall cost and technical risk to the government
• B. Drafting the government’s procurement strategy
• C. Auditing and approving all invoices from subcontracts
• D. Setting government wage rates

Answer: (B)

The prime contractor’s job is to manage the contract’s performance. That means taking overall responsibility for planning the work, coordinating activities, and placing and administering subcontracts as needed to meet the contract requirements while keeping costs and technical risk as favorable as possible for the government. The government drafts its procurement strategy, and payment-related auditing of subcontract invoices and setting wage rates are not duties of the prime contractor. Wage determinations come from the Department of Labor, and invoicing and payments are handled through the government’s contract administration processes.