333 – Excessive Pass-Through Charges

Kevin and Paul discuss the application of FAR 52.215-23, Limitations on Pass-Through Charges. The government supports subcontracting and even mandates that small businesses receive preference when subcontracting opportunities exist. What they don’t want is for a prime contractor to subcontract all (or almost all) of the work out without providing any value as the prime. To ensure this doesn’t happen, there is a helpful clause that directs the contracting officer to determine whether excessive pass-through charges exist.