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DFARS Provisions on Excessive Pass-Through Charges Deleted

The Department of Defense has issued a final rule (DFARS Case 2006-D057) that deletes the Defense Federal Acquisition Regulation Supplement language implementing Section 852 of the National Defense Authorization Act for Fiscal Year 2007, which required DoD to prescribe regulations to ensure that pass-through charges on contracts or subcontracts that are entered into for or on behalf of DoD are not excessive in relation to the cost of work performed by the relevant contractor or subcontractor. An interim rule dated April 26, 2007 (70,016.432) amended the DFARS to include a solicitation provision and contract clause in DoD contracts to implement the Section 852 requirements. However, an October 14, 2009, FAR interim rule (70,002.116) subsequently implemented the requirements of Section 866 of the NDAA for FY09 on the issue of excessive pass-through charges. The language of the FAR rule is duplicative of the interim DFARS rule implementing Section 852, and the interim DFARS rule is now obsolete. The final rule, as corrected by a technical amendment (70,016.586), amends DFARS 215.408 and removes DFARS 231.201-2, DFARS 231.203, DFARS 252.215-7003, and DFARS 252.215-7004. The effective date of the final rule is August 10, 2010, and the text of the rule appears at 70,016.583..




(The news featured above is a selection from the news covered in the Government Contracts Report Letter, which is published weekly and distributed to subscribers of the Government Contracts Reporter. )


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