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Diane Publishing Books
Defense Contracting: Contract Risk a Key Factor in Assessing Excessive Pass-Through Charges
Ann Calvaresi Barr (au)
One-third of the DoD FY 2006 spending on goods and services was for subcontracts. Concerns have been raised among DoD auditors and Congress about the potential for excessive pass-through charges by contractors that add little or no value when work is subcontracted. To better understand this risk, this report assesses the extent to which DoD may be vulnerable to these charges, and examines: (1) DoDís approach to assessing the risk of excessive pass-through charges when work is subcontracted; (2) the strategies that selected private sector companies use to minimize risks of excessive pass-through charges when purchasing goods and services; and (3) DoDís interim rule to prevent excessive pass-through charges. Illustrations.
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