Federal Register / Vol. 73, No. 93 / Tuesday, May 13, 2008 / Rules and Regulations 27473 

to be performed under the contract, task 

order, or delivery order, the offeror shall 

identify in its proposal—

(i) The amount of the offeror’s indirect 

costs and profit applicable to the work to be 

performed by the subcontractor(s); and 

(ii) A description of the added value 

provided by the offeror as related to the work 

to be performed by the subcontractor(s). 

(3) If any subcontractor proposed under the 

contract, task order, or delivery order intends 

to subcontract to a lower-tier subcontractor 

more than 70 percent of the total cost of work 

to be performed under its subcontract, the 

offeror shall identify in its proposal—

(i) The amount of the subcontractor’s 

indirect costs and profit applicable to the 

work to be performed by the lower-tier 

subcontractor(s); and 

(ii) A description of the added value 

provided by the subcontractor as related to 

the work to be performed by the lower-tier 

subcontractor(s). 

(End of provision) 

252.215–7004 Excessive pass-through 

charges. 

As prescribed in 215.408(4), use the 

following clause: 

EXCESSIVE PASS-THROUGH CHARGES 

(MAY 2008) 

(a) Definitions. As used in this clause—

Added value means that the Contractor 

performs subcontract management functions 

that the Contracting Officer determines are a 

benefit to the Government (e.g., processing 

orders of parts or services, maintaining 

inventory, reducing delivery lead times, 

managing multiple sources for contract 

requirements, coordinating deliveries, 

performing quality assurance functions). 

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 indirect costs or 

profit on work performed by a subcontractor 

(other than charges for the costs of managing 

subcontracts and applicable indirect costs 

and profit based on such costs). 

No or negligible value means the 

Contractor or subcontractor cannot 

demonstrate to the Contracting Officer that 

its effort added value to the contract or 

subcontract in accomplishing the work 

performed under the contract (including task 

or delivery orders). 

Subcontract means any contract, as defined 

in section 2.101 of the Federal Acquisition 

Regulation, entered into by a subcontractor to 

furnish supplies or services for performance 

of the contract or a subcontract. It includes 

but is not limited to purchase orders, and 

changes and modifications to purchase 

orders. 

Subcontractor means any supplier, 

distributor, vendor, or firm that furnishes 

supplies or services to or for the Contractor 

or another subcontractor. 

(b) General. The Government will not pay 

excessive pass-through charges. The 

Contracting Officer shall determine if 

excessive pass-through charges exist. 

(c) Required reporting of performance of 

work by the Contractor or a subcontractor. 

The Contractor shall notify the Contracting 

Officer in writing if—

(1) The Contractor changes the amount of 

subcontract effort after award such that it 

exceeds 70 percent of the total cost of work 

to be performed under the contract, task 

order, or delivery order. The notification 

shall identify the revised cost of the 

subcontract effort and shall include 

verification that the Contractor will provide 

added value; or 

(2) Any subcontractor changes the amount 

of lower-tier subcontractor effort after award 

such that it exceeds 70 percent of the total 

cost of the work to be performed under its 

subcontract. The notification shall identify 

the revised cost of the subcontract effort and 

shall include verification that the 

subcontractor will provide added value as 

related to the work to be performed by the 

lower-tier subcontractor(s). 

(d) Recovery of excessive pass-through 

charges. If the Contracting Officer determines 

that excessive pass-through charges exist—

(1) For fixed-price contracts, the 

Government shall be entitled to a price 

reduction for the amount of excessive passthrough charges included in the contract 

price; and 

(2) For other than fixed-price contracts, the 

excessive pass-through charges are 

unallowable in accordance with the 

provisions in Subpart 31.2 of the Federal 

Acquisition Regulation (FAR) and Subpart 

231.2 of the Defense FAR Supplement. 

(e) Access to records. (1) The Contracting 

Officer, or authorized representative, shall 

have the right to examine and audit all the 

Contractor’s records (as defined at FAR 

52.215–2(a)) necessary to determine whether 

the Contractor proposed, billed, or claimed 

excessive pass-through charges. 

(2) For those subcontracts to which 

paragraph (f) of this clause applies, the 

Contracting Officer, or authorized 

representative, shall have the right to 

examine and audit all the subcontractor’s 

records (as defined at FAR 52.215–2(a)) 

necessary to determine whether the 

subcontractor proposed, billed, or claimed 

excessive pass-through charges. 

(f) Flowdown. The Contractor shall insert 

the substance of this clause, including this 

paragraph (f), in all subcontracts under this 

contract, except for—

(1) Firm-fixed-price subcontracts awarded 

on the basis of adequate price competition; 

(2) Fixed-price subcontracts with economic 

price adjustment, awarded on the basis of 

adequate price competition; 

(3) Firm-fixed-price subcontracts for the 

acquisition of a commercial item; or 

(4) Fixed-price subcontracts with economic 

price adjustment, for the acquisition of a 

commercial item. 

(End of clause) 

Alternate I (MAY 2008). As prescribed 

in 215.408(4)(ii), substitute the 

following paragraph (b) for paragraph 

(b) of the basic clause: 

(b) General. The Government will not 

pay excessive pass-through charges. The 

Contracting Officer has determined that 

there will be no excessive pass-through 

charges, provided the Contractor 

performs the disclosed value-added 

functions. 

[FR Doc. E8–10666 Filed 5–12–08; 8:45 am] 

BILLING CODE 5001–08–P 

DEPARTMENT OF COMMERCE 

National Oceanic and Atmospheric 

Administration 

50 CFR Part 679 

[Docket No. 071106673–8011–02] 

RIN 0648–XH84 

Fisheries of the Exclusive Economic 

Zone Off Alaska; Pacific Ocean Perch 

for Vessels in the Bering Sea and 

Aleutian Islands Trawl Limited Access 

Fishery in the Central Aleutian District 

of the Bering Sea and Aleutian Islands 

Management Area 

AGENCY: National Marine Fisheries 

Service (NMFS), National Oceanic and 

Atmospheric Administration (NOAA), 

Commerce. 

ACTION: Temporary rule; closure. 

SUMMARY: NMFS is prohibiting directed 

fishing for Pacific ocean perch for 

vessels participating in the Bering Sea 

and Aleutian Islands (BSAI) trawl 

limited access fishery in the Central 

Aleutian District of the BSAI. This 

action is necessary to prevent exceeding 

the 2008 Pacific ocean perch total 

allowable catch (TAC) specified for 

vessels participating in the BSAI trawl 

limited access fishery in the Central 

Aleutian District of the BSAI. 

DATES: Effective 1200 hrs, Alaska local 

time (A.l.t.), May 8, 2008, through 1200 

hrs, A.l.t., September 1, 2008. 

FOR FURTHER INFORMATION CONTACT: 

Jennifer Hogan, 907–586–7228. 

SUPPLEMENTARY INFORMATION: NMFS 

manages the groundfish fishery in the 

BSAI exclusive economic zone 

according to the Fishery Management 

Plan for Groundfish of the Bering Sea 

and Aleutian Islands Management Area 

(FMP) prepared by the North Pacific 

Fishery Management Council under 

authority of the Magnuson-Stevens 

Fishery Conservation and Management 

Act. Regulations governing fishing by 

U.S. vessels in accordance with the FMP 

appear at subpart H of 50 CFR part 600 

and 50 CFR part 679. 

The 2008 Pacific ocean perch TAC 

allocated as a directed fishing allowance 

to vessels participating in the BSAI 

trawl limited access fishery in the 

Central Aleutian District of the BSAI is 


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27474 Federal Register / Vol. 73, No. 93 / Tuesday, May 13, 2008 / Rules and Regulations 

222 metric tons (mt) as established by 

the 2008 and 2009 final harvest 

specifications for groundfish in the 

BSAI (73 FR 10160, February 26, 2008). 

In accordance with § 679.20(d)(1)(iii), 

the Administrator, Alaska Region, 

NMFS (Regional Administrator), has 

determined that the 2008 Pacific ocean 

perch TAC allocated to vessels 

participating in the BSAI trawl limited 

access fishery in the Central Aleutian 

District of the BSAI will soon be 

reached. Consequently, NMFS is 

prohibiting directed fishing for Pacific 

ocean perch by vessels participating in 

the BSAI trawl limited access fishery in 

the Central Aleutian District of the 

BSAI. 

After the effective date of this closure 

the maximum retainable amounts at 

§ 679.20(e) and (f) apply at any time 

during a trip. 

Classification 

This action responds to the best 

available information recently obtained 

from the fishery. The Assistant 

Administrator for Fisheries, NOAA, 

(AA), finds good cause to waive the 

requirement to provide prior notice and 

opportunity for public comment 

pursuant to the authority set forth at 5 

U.S.C. 553(b)(B) as such requirement is 

impracticable and contrary to the public 

interest. This requirement is 

impracticable and contrary to the public 

interest as it would prevent NMFS from 

responding to the most recent fisheries 

data in a timely fashion and would 

delay the closure of Pacific ocean perch 

by vessels participating in the BSAI 

trawl limited access fishery in the 

Central Aleutian District of the BSAI. 

NMFS was unable to publish a notice 

providing time for public comment 

because the most recent, relevant data 

only became available as of May 7, 

2008. 

The AA also finds good cause to 

waive the 30–day delay in the effective 

date of this action under 5 U.S.C. 

553(d)(3). This finding is based upon 

the reasons provided above for waiver of 

prior notice and opportunity for public 

comment. 

This action is required by § 679.20 

and § 679.91 and is exempt from review 

under Executive Order 12866. 

Authority: 16 U.S.C. 1801 et seq. 

Dated: May 7, 2008. 

James P. Burgess, 

Acting Director, Office of Sustainable 

Fisheries, National Marine Fisheries Service. 

[FR Doc. 08–1251 Filed 5–8–08; 1:24 pm] 

BILLING CODE 3510–22–S 


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