FAR 52.215-23 Limitations on Pass-Through Charges. Basic (Jun 2020) (Current)

As prescribed in 15.408(n)(2), 

                     (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.
 

Limitations on Pass-Through Charges (Jun 2020)

      (a) Definitions. As used in this clause-

      Added value means that the Contractor performs subcontract management functions that the Contracting Officer determines are a benefit to the Government (e.g., processing orders of parts or services, maintaining inventory, reducing delivery lead times, managing multiple sources for contract requirements, coordinating deliveries, performing quality assurance functions).

      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).

      No or negligible value means the Contractor or subcontractor cannot demonstrate to the Contracting Officer that its effort added value to the contract or subcontract in accomplishing the work performed under the contract (including task or delivery orders).

      Subcontract means any contract, as defined in Federal Acquisition Regulation (FAR) 2.101, entered into by a subcontractor to furnish supplies or services for performance of the contract or a subcontract. It includes but is not limited to purchase orders, and changes and modifications to purchase orders.

      Subcontractor, as defined in FAR 44.101, means any supplier, distributor, vendor, or firm that furnishes supplies or services to or for a prime Contractor or another subcontractor.

      (b) General. The Government will not pay excessive pass-through charges. The Contracting Officer shall determine if excessive pass-through charges exist.

      (c) Reporting. Required reporting of performance of work by the Contractor or a subcontractor. The Contractor shall notify the Contracting Officer in writing if-

           (1) The Contractor changes the amount of subcontract effort after award such that it exceeds 70 percent of the total cost of work to be performed under the contract, task order, or delivery order. The notification shall identify the revised cost of the subcontract effort and shall include verification that the Contractor will provide added value; or

           (2) Any subcontractor changes the amount of lower-tier subcontractor effort after award such that it exceeds 70 percent of the total cost of the work to be performed under its subcontract. The notification shall identify the revised cost of the subcontract effort and shall include verification that the subcontractor will provide added value as related to the work to be performed by the lower-tier subcontractor(s).

      (d) Recovery of excessive pass-through charges. If the Contracting Officer determines that excessive pass-through charges exist;

           (1) For other than fixed-price contracts, the excessive pass-through charges are unallowable in accordance with the provisions in FAR subpart 31.2; and

           (2) For applicable DoD fixed-price contracts, as identified in 15.408(n)(2)(i)(B), the Government shall be entitled to a price reduction for the amount of excessive pass-through charges included in the contract price.

      (e) Access to records.

(1) The Contracting Officer, or authorized representative, shall have the right to examine and audit all the Contractor’s records (as defined at FAR 52.215-2(a)) necessary to determine whether the Contractor proposed, billed, or claimed excessive pass-through charges.

           (2) For those subcontracts to which paragraph (f) of this clause applies, the Contracting Officer, or authorized representative, shall have the right to examine and audit all the subcontractor’s records (as defined at FAR 52.215-2(a)) necessary to determine whether the subcontractor proposed, billed, or claimed excessive pass-through charges.

      (f) Subcontracts. The Contractor shall insert the substance of this clause, including this paragraph (f), in all cost-reimbursement subcontracts under this contract that exceed the simplified acquisition threshold, as defined in FAR 2.101 on the date of subcontract award, except if the contract is with DoD, then insert in all cost-reimbursement subcontracts and fixed-price subcontracts, except those identified in FAR 15.408(n)(2)(i)(B)(2), that exceed the threshold for obtaining cost or pricing data in FAR 15.403-4 on the date of subcontract award.

(End of clause)
 

 (f) Subcontracts. The Contractor shall insert the substance of this clause, including this paragraph (f), in all cost-reimbursement subcontracts under this contract that exceed the simplified acquisition threshold, as defined in FAR 2.101 on the date of subcontract award, except if the contract is with DoD, then insert in all cost-reimbursement subcontracts and fixed-price subcontracts, except those identified in FAR 15.408(n)(2)(i)(B)(2), that exceed the threshold for obtaining cost or pricing data in FAR 15.403-4 on the date of subcontract award.

Mandatory (Exception);
Time and Materials ✖ (Applies to C/R contracts over $250,000 for civilian agencies or, for DoD over $750,000 to C/R or FFP/FPIF/FPEA contracts solicited on sole-source or for non-commercial items.);

52.213-4 Terms and Conditions—Simplified Acquisitions (Other Than Commercial Products and Commercial Services).

52.222-19 Child Labor-Cooperation with Authorities and Remedies.

52.204-21 Basic Safeguarding of Covered Contractor Information Systems.

52.204-23 Prohibition on Contracting for Hardware, Software, and Services Developed or Provided by Kaspersky Lab and Other Covered Entities.

52.204-24 Representation Regarding Certain Telecommunications and Video Surveillance Services or Equipment.

52.204-25 Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment

52.209-13 Violation of Arms Control Treaties or Agreements-Certification.

52.209-14 Reserve Officer Training Corps and Military Recruiting on Campus.

52.212-3 Offeror Representations and Certifications-Commercial Items.

52.212-4 Contract Terms and Conditions-Commercial Items.

52.219-8 Utilization of Small Business Concerns.

52.219-9 Small Business Subcontracting Plan.

52.212-3 Offeror Representations and Certifications—Commercial Products and Commercial Services.

52.212-5 Contract Terms and Conditions Required To Implement Statutes or Executive Orders—Commercial Products and Commercial Services.

52.212-5 Contract Terms and Conditions Required To Implement Statutes or Executive Orders-Commercial Items.

52.213-4 Terms and Conditions-Simplified Acquisitions (Other Than Commercial Items).

52.242-3 Penalties for Unallowable Costs.

52.245-1 Government Property.

52.219-14 Limitations on Subcontracting.

52.219-16 Liquidated Damages-Subcontracting Plan.

52.219-27 Notice of Service-Disabled Veteran-Owned Small Business Set-Aside.

52.219-28 Post-Award Small Business Program Rerepresentation.

52.219-29 Notice of Set-Aside for, or Sole Source Award to, Economically Disadvantaged Women-Owned Small Business Concerns.

52.219-30 Notice of Set-Aside for, or Sole Source Award to, Women-Owned Small Business Concerns Eligible Under the Women-Owned Small Business Program.

52.219-33 Nonmanufacturer Rule.

52.222-18 Certification Regarding Knowledge of Child Labor for Listed End Products.

52.225-6 Trade Agreements Certificate.

52.225-9 Buy American-Construction Materials.

52.225-13 Restrictions on Certain Foreign Purchases.

52.228-11 Pledges of Assets.

52.204-2 Security Requirements.

52.212-5 Contract Terms and Conditions Required To Implement Statutes or Executive Orders-Commercial Items.

52.229-12 Tax on Certain Foreign Procurements.

52.219-1 Small Business Program Representations.

52.212-5 Contract Terms and Conditions Required To Implement Statutes or Executive Orders-Commercial Items.

52.225-23 Required Use of American Iron, Steel, and Manufactured Goods-Buy American Statute-Construction Materials under Trade Agreements.

52.208-8 Required Sources for Helium and Helium Usage Data.

52.209-7 Information Regarding Responsibility Matters.

52.212-4 Contract Terms and Conditions-Commercial Items.

52.212-5 Contract Terms and Conditions Required To Implement Statutes or Executive Orders-Commercial Items.

52.219-3 Notice of HUBZone Set-Aside or Sole Source Award.

52.219-4 Notice of Price Evaluation Preference for HUBZone Small Business Concerns.

52.219-9 Small Business Subcontracting Plan.

52.222-4 Contract Work Hours and Safety Standards -Overtime Compensation.

52.213-4 Terms and Conditions-Simplified Acquisitions (Other Than Commercial Items).

52.219-6 Notice of Total Small Business Set-Aside.

52.219-11 Special 8(a) Contract Conditions.

52.219-12 Special 8(a) Subcontract Conditions.

52.219-13 Notice of Set-Aside of Orders.

52.219-14 Limitations on Subcontracting.

52.219-17 Section 8(a) Award.

52.219-18 Notification of Competition Limited to Eligible 8(a) Concerns

52.219-27 Notice of Service-Disabled Veteran-Owned Small Business Set-Aside.

52.219-28 Post-Award Small Business Program Rerepresentation.

52.219-29 Notice of Set-Aside for, or Sole Source Award to, Women-Owned Small Business Concerns Eligible Under the Women-Owned Small Business Program.

52.219-30 Notice of Set-Aside for, or Sole Source Award to, Women-Owned Small Business Concerns Eligible Under the Women-Owned Small Business Program.

52.213-4 Terms and Conditions-Simplified Acquisitions (Other Than Commercial Items).

52.215-20 Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data.

52.215-21 Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data-Modifications.

52.219-9 Small Business Subcontracting Plan.

52.222-50 Combating Trafficking in Persons.

52.225-1 Buy American-Supplies

52.225-3 Buy American-Free Trade Agreements-Israeli Trade Act.

52.225-9 Buy American-Construction Materials.

52.225-11 Buy American-Construction Materials under Trade Agreements.

52.229-13 Taxes—Foreign Contracts in Afghanistan.

52.229-14 Taxes—Foreign Contracts in Afghanistan (North Atlantic Treaty Organization Status of Forces Agreement).

52.232-40 Providing Accelerated Payments to Small Business Subcontractors.

52.246-26 Reporting Nonconforming Items.

52.247-64 Preference for Privately Owned U.S.-Flag Commercial Vessels.

52.222-4 Contract Work Hours and Safety Standards —Overtime Compensation.

52.222-19 Child Labor-Cooperation with Authorities and Remedies.

52.222-30 Construction Wage Rate Requirements-Price Adjustment (None or Separately Specified Method).

52.222-31 Construction Wage Rate Requirements-Price Adjustment (Percentage Method).

52.222-32 Construction Wage Rate Requirements-Price Adjustment (Actual Method).

52.222-41 Service Contract Labor Standards.

52.222-43 Fair Labor Standards Act and Service Contract Labor Standards-Price Adjustment (Multiple Year and Option Contracts).

52.223-11 Ozone-Depleting Substances.

52.223-17 Affirmative Procurement of EPA-designated Items in Service and Construction Contracts.

52.225-7 Waiver of Buy American Statute for Civil Aircraft and Related Articles.

52.225-19 Contractor Personnel in a Designated Operational Area or Supporting a Diplomatic or Consular Mission Outside the United States.

52.225-26 Contractors Performing Private Security Functions Outside the United States.

52.228-11 Pledges of Assets.

52.228-15 Performance and Payment Bonds-Construction.

52.230-5 Cost Accounting Standards-Educational Institution.

52.234-2 Notice of Earned Value Management System-Preaward Integrated Baseline Review.

52.234-3 Notice of Earned Value Management System-Postaward Integrated Baseline Review.

52.234-4 Earned Value Management System.

52.243-7 Notification of Changes.

52.219-4 Notice of Price Evaluation Preference for HUBZone Small Business Concerns.

52.219-7 Notice of Partial Small Business Set-Aside.

52.222-55 Minimum Wages Under Executive Order 13658.

52.212-5 Contract Terms and Conditions Required To Implement Statutes or Executive Orders—Commercial Products and Commercial Services.

52.213-4 Terms and Conditions—Simplified Acquisitions (Other Than Commercial Items).

52.222-50 Combating Trafficking in Persons.

52.204-26 Covered Telecommunications Equipment or Services—Representation.

52.248-3 Value Engineering—Construction.

52.204-26 Covered Telecommunications Equipment or Services-Representation.

52.212-3 Offeror Representations and Certifications—Commercial Items.

52.212-5 Contract Terms and Conditions Required To Implement Statutes or Executive Orders—Commercial Items.

52.219-1 Small Business Program Representations.

52.219-6 Notice of Total Small Business Set-Aside.

52.219-7 Notice of Partial Small Business Set-Aside.

52.219-28 Post-Award Small Business Program Representation.

52.222-55 Minimum Wages Under Executive Order 13658.

52.209-12 Certification Regarding Tax Matters.

52.212-5 Contract Terms and Conditions Required To Implement Statutes or Executive Orders—Commercial Items.

52.213-4 Terms and Conditions-Simplified Acquisitions (Other Than Commercial Items).

52.204-24 Representation Regarding Certain Telecommunications and Video Surveillance Services or Equipment.

52.225-1 Buy American-Supplies

52.225-2 Buy American Certificate.

52.225-3 Buy American-Free Trade Agreements-Israeli Trade Act.

52.225-4 Buy American-Free Trade Agreements-Israeli Trade Act Certificate.

52.225-9 Buy American-Construction Materials.

52.225-11 Buy American-Construction Materials under Trade Agreements.

52.225-21 Required Use of American Iron, Steel, and Manufactured Goods-Buy American Statute-Construction Materials.

52.212-3 Offeror Representations and Certifications-Commercial Items.

52.212-5 Contract Terms and Conditions Required To Implement Statutes or Executive Orders-Commercial Items.

52.213-4 Terms and Conditions-Simplified Acquisitions (Other Than Commercial Items).

52.209-13 Violation of Arms Control Treaties or Agreements-Certification.

52.212-3 Offeror Representations and Certifications-Commercial Items.

52.213-4 Terms and Conditions-Simplified Acquisitions (Other Than Commercial Items).

52.223-3 Hazardous Material Identification and Material Safety Data.

52.225-2 Buy American Certificate.

52.225-4 Buy American-Free Trade Agreements-Israeli Trade Act Certificate.

52.213-4 Terms and Conditions—Simplified Acquisitions (Other Than Commercial Items).

52.204-24 Representation Regarding Certain Telecommunications and Video Surveillance Services or Equipment.

52.204-25 Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment.

52.209-5 Certification Regarding Responsibility Matters.

52.212-3 Offeror Representations and Certifications—Commercial Items.

52.212-5 Contract Terms and Conditions Required To Implement Statutes or Executive Orders—Commercial Items.

52.228-15 Performance and Payment Bonds—Construction.

52.230-1 Cost Accounting Standards Notices and Certification.

52.230-2 Cost Accounting Standards.

52.230-3 Disclosure and Consistency of Cost Accounting Practices.

52.230-4 Disclosure and Consistency of Cost Accounting Practices—Foreign Concerns.

52.230-5 Cost Accounting Standards—Educational Institution.

52.246-26 Reporting Nonconforming Items.

52.248-1 Value Engineering.

52.213-4 Terms and Conditions—Simplified Acquisitions (Other Than Commercial Items).

52.214-26 Audit and Records—Sealed Bidding.

52.214-27 Price Reduction for Defective Certified Cost or Pricing Data—Modifications—Sealed Bidding.

52.214-28 Subcontractor Certified Cost or Pricing Data—Modifications—Sealed Bidding.

52.215-2 Audit and Records—Negotiation.

52.215-11 Price Reduction for Defective Certified Cost or Pricing Data—Modifications.

52.215-12 Subcontractor Certified Cost or Pricing Data.

52.209-13 Violation of Arms Control Treaties or Agreements-Certification.

52.215-13 Subcontractor Certified Cost or Pricing Data—Modifications.

52.215-21 Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data—Modifications.

52.219-9 Small Business Subcontracting Plan.

52.203-12 Limitation on Payments to Influence Certain Federal Transactions.

52.203-16 Preventing Personal Conflicts of Interest.

52.212-3 Offeror Representations and Certifications—Commercial Items.

52.212-5 Contract Terms and Conditions Required To Implement Statutes or Executive Orders—Commercial Items.

52.222-36 Equal Opportunity for Workers with Disabilities.

52.227-1 Authorization and Consent.

52.227-2 Notice and Assistance Regarding Patent and Copyright Infringement.

252.225-7051 Prohibition on Acquisition of Certain Foreign Commercial Satellite Services.

252.204-7017 Prohibition on the Acquisition of Covered Defense Telecommunications Equipment or Services-Representation.

252.225-7050 Disclosure of Ownership or Control by the Government of a Country that is a State Sponsor of Terrorism.

252.229-7000 Invoices Exclusive of Taxes or Duties.

252.225-7052 Restriction on the Acquisition of Certain Magnets and Tungsten.

252.204-7018 Prohibition on the Acquisition of Covered Defense Telecommunications Equipment or Services.

252.245-7002 Reporting Loss of Government Property.

252.225-7975 Additional Access to Contractor and Subcontractor Records (DEVIATION 2020-O0001)

252.249-7002 Notification of Anticipated Contract Termination or Reduction.

252.225-7012 Preference for Certain Domestic Commodities.

252.227-7037 Validation of Restrictive Markings on Technical Data.

252.204-7019 Notice of NIST SP 800-171 DoD Assessment Requirements.

252.204-7020 NIST SP 800-171 DoD Assessment Requirements.

252.211-7007 Reporting of Government-Furnished Property.

552.215-71 Examination of Records by GSA (Multiple Award Schedule).

552.204-9 Personal Identity Verification Requirements.

552.243-71 Equitable Adjustments.

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