48 CFR § 2131.205-70 - 2131.205-70 Major subcontractor service charge.
---
identifier: "/us/cfr/t48/s2131.205-70"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "48 CFR § 2131.205-70 - 2131.205-70 Major subcontractor service charge."
title_number: 48
title_name: "Federal Acquisition Regulations System"
section_number: "2131.205-70"
section_name: "2131.205-70 Major subcontractor service charge."
chapter_number: 21
chapter_name: "OFFICE OF PERSONNEL MANAGEMENT, FEDERAL EMPLOYEES GROUP LIFE INSURANCE FEDERAL ACQUISITION REGULATION"
subchapter_number: "E"
subchapter_name: "GENERAL CONTRACTING REQUIREMENTS"
part_number: "2131"
part_name: "CONTRACT COST PRINCIPLES AND PROCEDURES"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "5 U.S.C. 8716; 40 U.S.C. 486(c); 48 CFR 1.301."
regulatory_source: "58 FR 40378, July 28, 1993, unless otherwise noted."
cfr_part: "2131"
---
# 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.