Excessive Pass-Through Charge

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“Excessive pass-through charge”, with respect to a Contractor or subcontractor that adds no or negligible value to a contract or subcontract, means a charge to the Government by the Contractor or subcontractor that is for indirect costs or profit/fee on work performed by a subcontractor (other than charges for the costs of managing subcontracts and any applicable indirect costs and associated profit/fee based on such costs)[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