FAR 52.215-23 - Limitations on Pass-Through Charges
Prescribed in 15.408(n)(2) | |
Effective Date: | 1 October 2009 |
Clause or Provision: | Clause |
Provision or Clause Number: | 52.215-23 - Limitations on Pass-Through Charges |
Principle Type And/Or Purpose of Contract: | |
Required: | Cost Reimbursement, Supply; Cost Reimbursement, R&D; Cost Reimbursement, Service; Cost Reimbursement, Construction |
Applicable: | Time and Materials/Labor Hour; Facilities; Architect-Engineering; Dismantling, Demolition or Removal of Improvements; Leasing of Motor Vehicles; Time & Material/Labor Hour; Fixed Price, Construction; Fixed Price, Service; Fixed Price, R&D; Indefinite Delivery; Transportation; Utility Services |
Optional: | Simplified Acquisition Procedures (Excludes Micro-Purchase) |
Subject: | Subcontract(s)/Subcontractor(s) |
ProcurementType: | |
Contract Threshold: | |
Prescription Overview: |
Prescription(n) Limitations on Pass-Through Charges(2) (i) Except as provided in paragraph (n)(2)(ii), the contracting officer shall insert the clause 52.215-23, Limitations on Pass-Through Charges, in solicitations and contracts including task or delivery orders as follows: (A) For civilian agencies, insert the clause when—
(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. (iii) Use the clause 52.215-23 with its Alternate I when the contracting officer determines that the prospective contractor has demonstrated that its functions provide added value to the contracting effort and there are no excessive pass-through charges. |
Clause Overview: |
a)Definitions(b) GeneralThe Government will not pay excessive pass-through charges. The Contracting Officer shall determine if excessive pass-through charges exist. (c) ReportingRequired reporting of performance of work by the Contractor or a subcontractor. The Contractor shall notify the Contracting Officer in writing if—
(d) Recovery of excessive pass-through chargesIf the Contracting Officer determines that excessive pass-through charges exist;
(e) Access to records
(f) FlowdownThe 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, except if the contract is with DoD, then insert in all cost-reimbursement subcontracts and fixed-price subcontracts, except those identified in 15.408(n)(2)(i)(B)(2), that exceed the threshold for obtaining cost or pricing data in accordance with FAR 15.403-4. Alternate I (OCT 2009)As prescribed in 15.408(n)(2)(iii), substitute the following paragraph (b) for paragraph (b) of the basic clause: (b) General. The Government will not pay excessive pass-through charges. The Contracting Officer has determined that there will be no excessive pass-through charges, provided the Contractor performs the disclosed value-added functions. |
Important Notes/Requirements: | |
Subcontract Threshold: | |
Incorporated by Reference: | Yes |
Uniform Contract Format: | I |
Editor: | Marshall |
Personal notes.