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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)."

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Client Alert | 3 min read | 11.13.26

Massachusetts Trade Secret Preliminary Injunctions: Prove the Harm, Tailor the Relief

A strong trade secret claim is not a substitute for proof of irreparable harm. In Daikin Applied Americas Inc. v. Russo, No. SJC-13881 (Mass. Oct. 14, 2026), the Massachusetts Supreme Judicial Court held that likely success on a misappropriation claim does not create a presumption of irreparable harm. The court grounded its ruling in both the Massachusetts Uniform Trade Secrets Act and the traditional equitable principles the statute incorporates. It required a case-specific showing that the requested relief would prevent harm that a final judgment could not adequately remedy. ...