Luigi D'Amato

Two wholly owned subsidiaries will be partnering for work to be rendered to the US Government under a CPFF contract. Both Business Units have their won DCAA approved Indirect rates. Company B will invoice Company A for all Direct Costs plus their Indirect burdens plus their fees. Company A, which owns the contract, will produce its own invoice charging all its costs plus Indirect and their fee. Is Company A allowed to apply a Fee, call it a Handling Fee, to the invoice received from Company B?