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 | 5 min read | 06.04.26
EU Pay Transparency Directive: The Transposition Deadline is Looming — What Now?
Three years have passed since the EU Pay Transparency Directive ("PTD") came into existence, and it now appears highly likely that very few EU Member States will have fully transposed its provisions into national law by the 7 June 2026 deadline. For employers operating across the EU, this creates a deeply uncomfortable question: what are your obligations right now?
Client Alert | 6 min read | 06.03.26
Executive Order Creates Voluntary Regulatory Regime of Frontier AI Models
Client Alert | 8 min read | 06.03.26
ICC Releases New 2026 Arbitration Rules: Key Changes Effective 1 June 2026
Client Alert | 3 min read | 06.03.26
Important EU Court Judgment Clarifies Rules on Interest Due in Cartel Damages Cases
