PNWC's Government Contracting Update

Excessive Pass-Through Costs – Audit Oversight | PNWC’s Government Contracting Update

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Pass-through costs are indirect costs and profit/fee applied to subcontract costs. Excessive pass-through costs are those that add no or negligible value to a contract. No or negligible value means that the contractor could not demonstrate to the contracting officer’s satisfaction that its effort adds value to the contract in accomplishing the work to be performed under the contract.

Source: PNWC’s Government Contracting Update: Excessive Pass-Through Costs – Audit Oversight

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