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general_correspondence

52.215-23 Limitations on Pass-Through Charges

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We are the prime on a IDIQ, and have a subcontractors cost in our proposal to the government. We are pursuing a task order release. FAR 52.215-23 is on our prime contract, and the subcontractor will perform 70% or more of the work.  At 52.215-23(c) (1) and (2) it talks about "changes" to the award amount, but no mention of notifying the CO or getting the CO's determination if pass through costs exist.  My question is, do we get the CO's determination in writing no pass through costs exist before the TO award, or only changes post award? 

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general,

My understanding of how this works is that you (1) notify the CO before award that you have one or more subcontractors that will perform in excess of 70% of the work, and (2) notify the CO during performance if a subcontractor that was not planned to perform in excess of 70% of the work actually does so. In either case, your company needs to provde the CO with rationale regarding your "value-added" as a prime to justify why the subcontractor charges are not excessive pass-through costs. If you've done all that, I don't believe you need a CO determination or written approval, because (from your end) you have complied with the clause requirements.

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6 hours ago, general_correspondence said:

 My question is, do we get the CO's determination in writing no pass through costs exist before the TO award, or only changes post award? 

Struggling a little with the question. Can we assume that FAR 52.215-22 is included in your IDIQ contract and that prior to award of the IDIQ contract, you did not disclose any information that you intended to subcontract more than 70 percent of the total cost of work to be performed under the contract,  a task order or delivery order? And, can we assume that now you have been given more specific information by the government of the task order work you are pursuing for award and that this information did not exist at the time of the IDIQ pre-award? If so, I would say that prior to award of the task order, you should disclose the subcontract that apparently cost more than 70% of the work under that task order.

Are the facts different from above?

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