Limitation on Mark-Up of Subcontractor Costs
Client Alert | less than 1 min read | 04.30.07
In an interim rule effective immediately, the Defense Department amended DFARS on April 26, 2007 to permit the Government to "disallow" (including on firm-fixed price contracts) "excessive pass through charges" on subcontracts where the total subcontract costs exceeds 70 percent of the contract value. "Excessive" charges are defined to include costs and profit that the contractor cannot demonstrate to the contracting officer add something other than "no or negligible" substantive value to performance, so any contractor with an accounting practice that allocates G&A to subcontract costs could run afoul of these rules.
Insights
Client Alert | 3 min read | 07.23.26
It is well established that “[c]ompetitive prejudice is an essential element of every viable protest.” Yet, for decades, the U.S. Government Accountability Office (GAO) has tempered this requirement with two critical corollaries: protesters need only demonstrate a “reasonable possibility” that they were prejudiced by an agency’s actions, and GAO “will resolve doubts regarding prejudice in favor of the protester.” These principles have been consistent features of GAO’s bid protest jurisprudence for more than 30 years. See, e.g., United Int’l Eng'g, Inc., B-245448, Jan. 29, 1992, 71 CPD ¶ 177.
Client Alert | 3 min read | 07.23.26
Second Circuit Affirms Preliminary Injunction Against Nielsen in Constructive Tying Case
Client Alert | 4 min read | 07.22.26
Client Alert | 4 min read | 07.22.26
Ghost Advertising: Compliance Takeaways From the Gymshark Influencer Class Action
