Avoid Providing Cost Breakdown on Subcontract Invoice

Q. We are reluctant to provide a breakdown of costs on our subcontract invoices since it will divulge our rate structure and amounts to our prime who we may compete against in the future. What can we do?

A. If you are likely to compete with your prime, that’s a good argument not to divulge a breakdown of costs on your invoices. However, if the government is requiring it of all cost type subcontracts its hard to fight that. Perhaps you can submit an invoice to the prime identifying the total of burdened costs and a separate one to the government identifying a cost breakdown. It is dependent on what you can negotiate.