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  1. Can a GSA schedule holder allow a subcontrator that doesn't have a GSA schedule to use its GSA schedule and only charge the subcontact a "pass through" charge. Is this allowable ? The prime has little or no involvement in the proposed work. Are schedule holders around the beltway doing this more often than they should, and not realizing that it is bascially unacceptable and frowned upon? In a nutshell, we allowed a subcontractor who we know well and teamed with many times (and is the incumbent doing the work at an agency) an opportunity to use our GSA schedule for a specifc procurement designated for XYZ GSA schedule holders only. We simply marked up a nominal amount and in our proposal we were clear that the sub was doing the majority of the work and we the prime ?schedule holder considered it a pass-through. The CO's response is that a pass through erodes the integrity of the procurement process and is deemed unacceptable in that in circumvents the rules. I have worked at other companies that also allowed companies to use their schedule in a pass-through situaiton. Is this pass through practice deemed appropriate or not? and can companies be reported to the GAO for engaging in this practice? Please advise.
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