Also known as: flowdown clauses · flow-down provisions
Contract terms a prime contractor passes down into its subcontracts so the subcontractor is bound by the same obligations the prime owes the government.
Flow-down clauses are provisions that a prime contractor incorporates — by reference or by restating them — into its subcontracts so that a subcontractor is bound by the same obligations the prime owes its customer or the government. On federal work, many FAR and DFARS clauses are mandatory flow-downs: for example, FAR 52.204-21 (basic safeguarding of contractor information systems), FAR 52.204-25 paragraph (e) (the Section 889 prohibition), and DFARS 252.204-7012 paragraph (m) (safeguarding covered defense information) each require the prime to include the clause in covered subcontracts. Insurance, cybersecurity, and export-control obligations are commonly flowed down as well — though the mechanism varies: insurance flow-downs are contract-driven (often tracking FAR 52.228-5), while ITAR flow-downs of required agreement provisions arise under 22 CFR 124.8 rather than a FAR clause, and EAR terms are customarily flowed down rather than mandated by a single universal clause. For a startup, the practical effect is that obligations written for the prime become binding on the startup the moment it signs the subcontract.
Source: FAR 52.244-6 — Subcontracts for Commercial Products and Services (Acquisition.gov)
Seller shall comply with, and flow down to its lower-tier subcontractors, all clauses of the prime contract applicable to this order, including all mandatory FAR and DFARS flow-down clauses.
It means the prime contractor incorporates the clause into its subcontract so the subcontractor must comply with the same requirement the prime owes the government — for example mandatory FAR/DFARS clauses, insurance, cybersecurity, and export-control terms.
No. Some FAR/DFARS clauses are mandatory flow-downs and must be included; others are optional or apply only to the prime. The subcontract's flow-down section (and the referenced clause list) determines which obligations bind the subcontractor.
Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.
Last updated: July 2026.