Regulations last checked for updates: May 01, 2025

Title 48 - Federal Acquisition Regulations System last revised: Oct 18, 2025
2131.205-70 - 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.

source: 58 FR 40378, July 28, 1993, unless otherwise noted.
cite as: 48 CFR 2131.205-70