# Subcontractor reconciliation history inventory | SourceX

Canonical: https://refer.sourcex.si/guides/workflow-subcontractor-evidence-reconciliation
Last updated: 2026-10-19

Before a subcontractor transition, inventory the record classes that explain each evidence reconciliation: the flowdown list for every subcontract modification, the evidence the subcontractor submitted, the reviewer's notes, the approval or rejection that closed it, and the scope changes behind it. For each, record the system, the years covered, the named owner and the date access actually ends. Then introduce the supplier compliance director. Partners describe records; they never collect them.

## Why a subcontractor transition puts reconciliation history at risk

Subcontractor evidence reconciliation is the work of checking what a subcontractor submitted against what its subcontract required: certifications, insurance, flowdown clause acknowledgments, test results, staffing records. For commercial products and services, FAR 52.244-6 lists the clauses a contractor must flow down, several only when their own conditions apply, and FAR 44.402 limits the required clauses to that list. Each modification can change the list, so the history is a sequence of requirement sets and the evidence matched to each.

A transition happens when a prime or higher-tier contractor replaces a subcontractor at a recompete, terminates for convenience, or consolidates trades under a new firm. The evidence history does not move with the work. The outgoing firm's portal account is deactivated, its submittal folder is closed out, and the compliance team's notes stay scattered across a portal, a project platform and email. Nobody decides to discard the history; it simply stops being reachable on dates set by IT tickets and vendor contracts.

## The pre-transition inventory sheet

Inventory record classes, their date coverage, the system that holds each, the named owner and the real access deadline. Every column is metadata; none requires opening a document.

| Record class | Typical system | Ask the company | Owner to name |
|---|---|---|---|
| Flowdown list per subcontract and modification | Contract management or subcontract files | How many subcontracts and mods, over how many years? | Subcontracts manager |
| Evidence submissions | Supplier portal | Is the submission history retained after a supplier account is closed? | Supplier compliance director |
| Reviewer notes and deficiency letters | Supplier portal comments, email, shared drive | Are notes attached to the submission or kept separately? | Compliance analysts' manager |
| Approvals, conditional approvals, rejections | Supplier portal workflow or project platform | Is the decision timestamped and tied to a scope revision? | Supplier compliance director |
| Scope revisions and change orders | Project platform | Can each change order be matched to a subcontract mod number? | Project controls lead |
| Corrective actions and closeouts | Quality system or spreadsheet | Is the closeout linked back to the original deficiency? | Quality manager |

Reviewer notes are the class most often lost. Submissions and approvals usually live in a workflow tool with an export path; the reasoning between them often lives in individual inboxes that are archived when staff move to other programs.

## Work backward from each access deadline

The access deadline, not a sales timeline, is the only real urgency. Different record classes lose access on different days, so list each one.

**Illustrative** deadline map for one transition, not a real company:

| Day relative to transition | What happens | Record classes affected |
|---|---|---|
| Day -30 | Inventory complete and owners named | All |
| Day 0 | Outgoing subcontractor's portal account deactivated | Evidence submissions, approvals |
| Day 30 | Departing project staff mailboxes archived | Reviewer notes, deficiency letters |
| Day 60 | Project folder closed out on the project platform | Scope revisions, closeouts |

In practice the steps are:

1. **Find each date.** Ask IT and the portal administrator when accounts close, mailboxes are archived and project folders are closed out. If nobody knows, that is the first finding.
2. **Measure coverage.** Count subcontracts, modifications and years per record class. Approximate figures are fine.
3. **Check the joins.** Do approvals cite a modification or scope revision number? If not, a later reader cannot tell which requirement set the evidence was judged against.
4. **Name owners and restrictions.** Note controlled unclassified information, customer confidentiality clauses and subcontract terms that limit reuse.

## What a partner should not recommend

FAR 4.703 generally requires contractors to keep records and supporting evidence available for 3 years after final payment, longer if a contract clause says so. That is a retention floor for audit, not permission to reuse anything. Do not recommend that a company keep records it has no authority to keep, or override its retention schedule to preserve material for a licensing discussion. The right outcome of an inventory is a decision by the record owner, not a copy made by an outsider. The [metadata-only inventory method](/guides/how-to-prepare-a-metadata-only-inventory-of-business-systems) shows how to keep discovery at that level, and the page on [government contractor data and CUI restrictions](/industries/government-contractor-data-licensing-cui-restrictions) covers the controlled-information questions.

## Does the company qualify?

The introduced company needs 50+ full-time employees at peak (contractors excluded, which matters in a subcontract-heavy business), a documented operating history, rights to license the records, and an authorized contact. Companies in the U.S., Canada and the EU qualify, as do companies in the UK, Australia, New Zealand, India, Singapore, South Africa, Latin America, the UAE and Saudi Arabia when at least 90% of the data is in English.

What stays unknown until SourceX reviews it: whether the records can be licensed after the contract and controlled-information review, which records a buyer would want, the company's offer, and therefore any reward. Partners sign the Channel Partner Agreement before submitting an introduction. Attribution goes to the first valid introduction within the 90-day window, credited when the company submits a verified application. For the wider picture, see the [industries hub](/industries), the guide to a [recompete loss](/guides/government-contract-recompete-loss) and [why data rights matter](/proof/why-data-rights-matter).

## Go deeper on subcontractor evidence reconciliation

- [Subcontractor evidence reconciliation exception examples](/guides/subcontractor-evidence-reconciliation-exception-examples): worked cases of evidence that matched the wrong scope, and how each was closed.
- [Reconciliation records across systems](/guides/subcontractor-evidence-reconciliation-records-across-systems): a field map of the keys that join portal, contract and project records.
- [Who can license subcontractor reconciliation records](/questions/who-can-license-subcontractor-evidence-reconciliation-records): a short answer on which executive to introduce.
- [Subcontractor reconciliation referral brief template](/resources/subcontractor-evidence-reconciliation-referral-brief-template): a fill-in template for the introduction.

## Next step

> **Refer a company. Earn up to $100,000.** Default reward: 25% of Actual Supplier Payout, capped at $100,000 cumulatively per referred company. Eligibility and payment conditions apply, and a signed Schedule A or addendum can differ. A lead, meeting or signature alone does not trigger payment.

If a client's transition date is set and its reconciliation history spans years, [register as a partner](/register), confirm the company against [who qualifies](/who-qualifies), and read the [program terms](/terms) before you send the one-page handoff.

## Sources

- https://refer.sourcex.si/terms
- https://www.acquisition.gov/far/52.244-6
- https://www.acquisition.gov/far/4.703
- https://www.acquisition.gov/far/subpart-44.4