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Code of Federal Regulations (Last Updated: July 5, 2024) |
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Title 48 - Federal Acquisition Regulations System |
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Chapter 21 - Office of Personnel Management, Federal Employees Group Life Insurance Federal Acquisition Regulation |
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SubChapter E - General Contracting Requirements |
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Part 2131 - Contract Cost Principles and Procedures |
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Subpart 2131.2 - Contracts With Commercial Organizations |
§ 2131.205-70 - Major subcontractor service charge.
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2131.205-70 Major subcontractor service charge.
In a subcontract for enrollment and eligibility determinations, administration of claims and payment of benefits and any other subcontract for which prior approval is necessary, when costs are determined on the basis of actual costs incurred, any amount that exceeds the allowable cost of a major subcontract (whether entitled service charge, incentive fee, profit, fee, surplus, or any other title) is not allowable under the contract. Amounts which exceed allowable costs may be paid to a major subcontractor only from the risk charge or service charge negotiated between OPM and the contractor.