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 | 6 min read | 02.27.26
The U.S. Supreme Court’s February 20, 2026, opinion in Learning Resources. v. Trump (decided with Trump v. V.O.S. Selections), holding that the President lacks authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA), is notable for many reasons — including its practical impact on the many U.S. companies who paid steep tariffs on global imports and may now be able to recover by filing suit before the Court of International Trade (CIT). That possibility and the key reasons for the High Court’s decision are discussed in our recent alert on this momentous decision.
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