Added Value

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“Added value” means that the Contractor performs 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)[1].

Related Pages

FAR 52.215-22 - Limitations on Pass-Through Charges-Identification of Subcontract Effort

FAR 52.215-23 - Limitations on Pass-Through Charges

References

  1. FAR 52.215-23 - Limitations on Pass-Through Charges