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 | 3 min read | 01.21.26
Atlantic Biologicals Opioid DPA: DOJ Continues Ramp Up of Criminal Corporate Healthcare Enforcement
On January 13, 2026, Miami-based pharmaceutical wholesaler Atlantic Biologicals Corporation entered into a two-year DPA, admitting to conspiracy to distribute and dispense controlled substances, including more than 14 million opioid doses to “pill mill” pharmacies in Texas at a markup. The DOJ and DEA underscored the company’s deliberate evasion of compliance checks and disregard for red flags signaling diversion.
Client Alert | 3 min read | 01.21.26
FedRAMP Proposes Updates to Authorization Process—Six New RFCs Released for Public Comment
Client Alert | 3 min read | 01.20.26
DoW Joins SBA’s Fight Against Alleged Pass-Through Fraud in the 8(a) Program
Client Alert | 3 min read | 01.20.26
Federal Government Challenges Minnesota Law Requiring Affirmative Action in State Government
