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Prescribed in 15.408(n)(1) |
| Effective Date: | 1 October 2009 |
| Clause or Provision: | Provision |
| Provision or Clause Number: | 52.215-22 - Limitations on Pass-Through Charges-Identification of Subcontract Effort |
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| Principle Type And/Or Purpose of Contract: |
| Required: | Cost Reimbursement, Supply; Cost Reimbursement, R&D; Cost Reimbursement, Service; Cost Reimbursement, Construction |
| Applicable: | Time and Materials/Labor Hour; Facilities; Architect-Engineering; Dismantling, Demolition or Removal of Improvements; Leasing of Motor Vehicles; Time & Material/Labor Hour; Fixed Price, Construction; Fixed Price, Service; Fixed Price, R&D; Indefinite Delivery; Transportation; Utility Services |
| Optional: | Simplified Acquisition Procedures (Excludes Micro-Purchase) |
| Subject: | Subcontract(s)/Subcontractor(s) |
| ProcurementType: | |
| Contract Threshold: | |
| Prescription Overview: |
Prescription
(n) Limitations on Pass-Through Charges.
(1) The contracting officer shall insert the provision at 52.215-22, Limitations on Pass-Through Charges-Identification of Subcontract Effort, in solicitations containing the clause at 52.215-23.
(2)
(i) Except as provided in paragraph (n)(2)(ii), the contracting officer shall insert the clause 52.215-23, Limitations on Pass-Through Charges, in solicitations and contracts including task or delivery orders as follows:
- (A) For civilian agencies, insert the clause when—
- (1) The total estimated contract or order value exceeds the simplified acquisition threshold as defined in section 2.101 and
- (2) The contemplated contract type is expected to be a cost-reimbursement type contract as defined in Subpart 16.3; or
- (B) For DoD, insert the clause when—
- (1) The total estimated contract or order value exceeds the threshold for obtaining cost or pricing data in 15.403-4; and
- (2) The contemplated contract type is expected to be any contract type except—
- (i) A firm-fixed-price contract awarded on the basis of adequate price competition;
- (ii) A fixed-price contract with economic price adjustment awarded on the basis of adequate price competition;
- (iii) A firm-fixed-price contract for the acquisition of a commercial item;
- (iv) A fixed-price contract with economic price adjustment, for the acquisition of a commercial item;
- (v) A fixed-price incentive contract awarded on the basis of adequate price competition; or
- (vi) A fixed-price incentive contract for the acquisition of a commercial item.
(ii) The clause may be used when the total estimated contract or order value is below the thresholds identified in 15.408(n)(2)(i) and for any contract type, when the contracting officer determines that inclusion of the clause is appropriate.
(iii) Use the clause 52.215-23 with its Alternate I when the contracting officer determines that the prospective contractor has demonstrated that its functions provide added value to the contracting effort and there are no excessive pass-through charges.
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| Clause Overview: |
Provision
a) Definitions
Added Value
Excessive Pass-Through Charge
Subcontract
Subcontractor
b) General
The offeror’s proposal shall exclude excessive pass-through charges.
(c) Performance of work by the Contractor or a subcontractor
(1) The offeror shall identify in its proposal the total cost of the work to be performed by the offeror, and the total cost of the work to be performed by each subcontractor, under the contract, task order, or delivery order.
(2) If the offeror intends to subcontract more than 70 percent of the total cost of work to be performed under the contract, task order, or delivery order, the offeror shall identify in its proposal—
- (i) The amount of the offeror’s indirect costs and profit/fee applicable to the work to be performed by the subcontractor(s); and
- (ii) A description of the added value provided by the offeror as related to the work to be performed by the subcontractor(s).
(3) If any subcontractor proposed under the contract, task order, or delivery order intends to subcontract to a lower-tier subcontractor more than 70 percent of the total cost of work to be performed under its subcontract, the offeror shall identify in its proposal—
- (i) The amount of the subcontractor’s indirect costs and profit/fee applicable to the work to be performed by the lower-tier subcontractor(s); and
- (ii) A description of the added value provided by the subcontractor as related to the work to be performed by the lower-tier subcontractor(s).
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| Important Notes/Requirements: |
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| Subcontract Threshold: | |
| Incorporated by Reference: | Yes |
| Uniform Contract Format: | L |
| Editor: | Marshall |
