Pass-Through Cost Proposed Rule

The government issued on July 10, 2014, a proposed rule that would require all agencies to justify contract awards, except those to small businesses, that propose to pass through more than 70 percent of the total cost of work to subcontractors by considering the availability of alternative contract vehicles and the feasibility of contracting directly with the proposed subcontractor(s) and to make a written determination that the selected contracting approach is in the best interest of the government. Written comments on the proposed rule are due September 9, 2014.