14 USC 568 - Guidance on Excessive Pass-through Charges
(a) In General.—Not later than 180 days after the date of enactment of the Coast Guard Authorization Act of 2010, the Commandant shall issue guidance to ensure that pass-through charges on contracts, subcontracts, delivery orders, and task orders that are entered into with a private entity acting as a lead systems integrator by or on behalf of the Coast Guard are not excessive in relation to the cost of work performed by the relevant contractor or subcontractor. The guidance shall, at a minimum—
(1) set forth clear standards for determining when no, or negligible, value has been added to a contract by a contractor or subcontractor;
(2) set forth procedures for preventing the payment by the Government of excessive pass-through charges; and
(3) identify any exceptions determined by the Commandant to be in the best interest of the Government.
(b) Excessive Pass-Through Charge Defined.—In this section the term "excessive pass-through charge", with respect to a contractor or subcontractor that adds no, or negligible, value to a contract or subcontract, means a charge to the Government by the contractor or subcontractor that is for overhead or profit on work performed by a lower tier contractor or subcontractor, other than reasonable charges for the direct costs of managing lower tier contractors and subcontracts and overhead and profit based on such direct costs.
(c) Application of Guidance.—The guidance under this subsection shall apply to contracts awarded to a private entity acting as a lead systems integrator by or on behalf of the Coast Guard on or after the date that is 360 days after the date of enactment of the Coast Guard Authorization Act of 2010.
(Added Pub. L. 111–281, title IV, §402(a), Oct. 15, 2010, 124 Stat. 2940; amended Pub. L. 111–330, §1(4), Dec. 22, 2010, 124 Stat. 3569.)
Sections: 561 562 563 564 565 566 567 568 569 569a 571 572 573 574 575
Last modified: October 26, 2015