No, you wouldn't, but that doesn't mean its a good idea to have the clause.

What they are trying to avid is showing things like their G&A on labor, contracts admin fee, overhead rates, etc.

Is the subcontract a CPFF type?  If so, they need to show the actual costs.  Sounds like they want to turn it into a FPC.

"Watkins-Wendell,Kathryn A" <xxxxxx@UAKRON.EDU> wrote:

>
>A Colleague has asked me to post this question to the Listserv:
>Please respond to Rebecca directly.  Thanks.
>Katie.
>
>
>" I'm in the process of finalizing a subaward contract with Lockheed Martin and they want wording in it that says: "Subcontractor shall not be required to include any elements of cost in its invoice to Prime Contractor; however, all such invoices shall be subject to audit by the US DCAA (Defense Contract Audit Agency." Our Budget Director who is in charge of contracts wonders if we wouldn't be violating federal circulars if we don't have the authority to review their books or even see supporting documentation. Have you had this situation before and, if so, how did you resolve it?"
>
>
>
>Rebecca Priest
>Senior Director of Emerging Technologies & Strategic Grants
>Stark State College
>6200 Frank Ave. NW
>North Canton, OH   44720
>Phone: 330.494.6170 Ext. 4319
>Fax: 330.305.6612
>Email: xxxxxx@starkstate.edu<mailto:xxxxxx@starkstate.edu>
>
>
>
>
>
>
>======================================================================
> Instructions on how to use the RESADM-L Mailing List, including
> subscription information and a web-searchable archive, are available
> via our web site at http://www.hrinet.org (click on "Listserv Lists")
>======================================================================

======================================================================
 Instructions on how to use the RESADM-L Mailing List, including
 subscription information and a web-searchable archive, are available
 via our web site at http://www.hrinet.org (click on "Listserv Lists")
======================================================================