Defense Base Act - strictly a pass through?

I am preparing a cost proposal for a client for overseas work. DBA insurance is applicable and should be proposed per the RFP. The client would like to apply G&A and fee on top of the DBA costs. G&A is fine and is in line with their standard accounting practices but I don't believe applying fee to DBA costs is appropriate. Am I right about the fee? Can someone direct me to where I can find back-up to support not adding fee so I can show the client?