XL EagleFlow-down clause
Flow-down clause. A flow-down clause is a requirement in the prime contract that must also be placed in subcontracts. The government holds the prime responsible, so the prime passes certain obligations to its subs. Some clauses must be flowed down by law, and the clause text usually says so.
Common flow-downs include labor standards (Service Contract Act, Davis-Bacon), equal opportunity, E-Verify, cybersecurity, and anti-kickback rules. Primes may also flow down other terms by choice, like inspection or termination rights.
Why it matters to a small contractor
As a subcontractor, the flow-down list in your subcontract tells you which federal rules you now carry. Ask for it before you price the job, because a wage determination or cybersecurity requirement can change your cost a lot.
Example
A small HVAC sub signs on to a prime's base maintenance contract. The subcontract flows down the Service Contract Act clause and the wage determination, so the sub must pay its technicians at least the listed rate plus health and welfare fringe.
Flow-down clause: common questions
Which FAR clauses must be flowed down?
The required ones are named in the clause text and, for commercial subcontracts, listed in FAR 52.212-5 and 52.244-6. Common examples include labor standards, equal opportunity, and certain cybersecurity clauses.
Can a prime flow down more than the FAR requires?
Yes. Primes often add their own terms. Negotiate before signing if a term seems unfair or unrelated to your work.
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