Blog    Contact

Are Your Subcontractors Adding Value?

Recent guidance from DCAA suggests they may start disallowing certain indirect costs for the prime on contracts where the subs are doing more than 70% of the work.

"Adding Value" is, of course, subjective. Auditors will be looking for evidence that subcontracting out the majority of a contract is a net benefit for the government. If you are a prime with contracts that are fulfilled by subs in excess of the 70% threshold, be prepared to justify how that decision adds value for your government customer.

Comments are closed.