DFARS Excessive Pass-Through Cost Rule Modified
Client Alert | 1 min read | 05.13.08
Effective May 13, 2008 (73 Fed. Reg. 27464), the widely-criticized interim DFARS rules about "excessive pass-through costs" published last April were modified in yet another interim rule to address the confusion created by the interim rules. The most important features of the new interim rules are in the prefatory comments, which emphasize repeatedly that the requirement for reporting when subcontract effort will exceed 70 percent applies both before and after award, but is only a reporting requirement, not a threshold for coverage, and that the rules do not apply to any contract, no matter what the subcontract content, where the contractor demonstrates "added value," a term that is defined in the interim regulations to include performance of "subcontract management functions that the Contracting Officer determines are a benefit to the Government (e.g., processing orders of parts or services, maintaining inventory, reducing delivery lead times, managing multiple sources for contract requirements, coordinating deliveries, performing quality assurance functions)."
Insights
Client Alert | 4 min read | 08.07.26
Missouri AG Sues Kansas City Over Race- and Sex-Based Contracting Program
On July 22, 2026, Missouri Attorney General Catherine L. Hanaway filed a federal lawsuit against the city of Kansas City, Missouri, challenging the city’s longstanding Minority and Women Business Enterprise (MWBE) program as unconstitutional. The AG filed the complaint in the U.S. District Court for the Western District of Missouri alongside private plaintiffs Charles Cacioppo Jr. and his company, Industrial Salvage and Wrecking Co.
Client Alert | 2 min read | 08.06.26
Client Alert | 2 min read | 08.03.26
New York Becomes First State to Restrict Addictive Social Media Features for Minors
