What threshold must be met for each major subcontract to be addressed in the PPNM?

The threshold that must be met for each major subcontract to be addressed in the Pre-Proposal Notification Memorandum (PPNM) is indeed $12.5 million. This specific threshold is established to ensure that significant subcontracting efforts are properly reviewed and documented, facilitating a better understanding of the overall contract management and compliance with appropriate regulations. The $12.5 million figure reflects the emphasis on transparency and accountability in government contracting, necessitating that larger and potentially more complex subcontract arrangements undergo thorough scrutiny.

In this context, it's essential to monitor subcontracts that meet or exceed this specified dollar amount to mitigate risks associated with performance issues, compliance with terms and conditions, and overall financial management. By setting this threshold, organizations can focus their oversight and resources on the most impactful parts of their contracts while ensuring adherence to regulatory requirements.