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Limitations on Pass Through Charges - Current DCAA Guidance

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In accordance with Federal Acquisition Regulations (FAR) 52.215-23, any indirect costs and associated profit applicable to subcontract costs where the contractor does not provide “added value” (e.g., subcontract management functions) are considered excessive pass-through costs which are unallowable.

Learn how the DCAA guidance to their auditors define "added value" and what is considered excessive pass-through costs. 

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