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 | 09.20.24
Department of Commerce Unveils New Tool to Inform Supply Chain Risk Mitigation
The U.S. Department of Commerce unveiled a groundbreaking analytic risk assessment tool to inform the U.S. government’s efforts in mitigating supply chain risks. Launched at the inaugural Supply Chain Summit hosted by the Department of Commerce and the Council on Foreign Relations on September 10, 2024, the SCALE Tool marks a significant milestone in the U.S. government’s broader commitment to strengthening the U.S. supply chain ecosystem.
Client Alert | 3 min read | 09.13.24
Client Alert | 12 min read | 09.13.24
Tri-Agencies Finalize NQTL Comparative Analysis Standards in Final Rule
Client Alert | 5 min read | 09.11.24