Operating Status
FULLY OPERATIONAL
OPERATING STATUS
These questions pertain to pass-through charges so FAR 15.404-1(h) provides the starting point for research. If this applies to your scenario, then ensure to document accordingly. Depending on contract type and the terms of the contract, prime and subcontractors should be able to both include profit/fee, indirect costs or G&A in their pricing IAW with any applicable disclosure statements. The government should not release information that has been expressly designated as not releasable.
If the contract has clause 52.215-23, that allows the Contracting Officer to determine if costs add "no or neglibilbe value" to a contract or a subcontract. This requires the indepedent business acumen of that Contracting Officer. As a reminder, there are restrictions for certain contract types regarding profit in terms of either not being allowed (FAR part 16) or how much profit is allowed IAW FAR 15.404-4(c)(4). Note DFARS PGI 215.404-1(h) helps provide some clarity in reviewing and justify pass-through costs.
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