---
title: Are Your Subcontractors Adding Value?
description: Recent guidance from DCAA suggests they may start disallowing certain indirect costs for the prime on contracts where subs are doing more than 70% of the work. If you have contracts that are fulfilled by subs in excess of 70%, be prepared to justify how it adds value for your government customer.
---

[Insights for Government Contractors | SYMPAQ Blog](https://sql.sympaq.com/blog)

# [Are Your Subcontractors Adding Value?](https://sql.sympaq.com/blog/are-your-subcontractors-adding-value)

 Written by [G. Chris Brown](https://sql.sympaq.com/blog/author/cbrown) | Jun 17, 2011 9:33:24 PM

Recent guidance from DCAA suggests they may start disallowing certain indirect costs for the prime on contracts where the subs are doing more than 70% of the work.

"Adding Value" is, of course, subjective. Auditors will be looking for evidence that subcontracting out the majority of a contract is a net benefit for the government. If you are a prime with contracts that are fulfilled by subs in excess of the 70% threshold, be prepared to justify how that decision adds value for your government customer.

[View full post](https://sql.sympaq.com/blog/are-your-subcontractors-adding-value)

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