[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR15.404-3]

[Page 266-267]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 15_CONTRACTING BY NEGOTIATION--Table of Contents
 
                      Subpart 15.4_Contract Pricing
 
Sec.  15.404-3  Subcontract pricing considerations.

    (a) The contracting officer is responsible for the determination of 
price reasonableness for the prime contract, including subcontracting 
costs. The contracting officer should consider whether a contractor or 
subcontractor has an approved purchasing system, has performed cost or 
price analysis of proposed subcontractor prices, or has negotiated the 
subcontract prices before negotiation of the prime contract, in 
determining the reasonableness of the prime contract price. This does 
not relieve the contracting officer from the responsibility to analyze 
the contractor's submission, including subcontractor's cost or pricing 
data.
    (b) The prime contractor or subcontractor shall--
    (1) Conduct appropriate cost or price analyses to establish the 
reasonableness of proposed subcontract prices;
    (2) Include the results of these analyses in the price proposal; and
    (3) When required by paragraph (c) of this subsection, submit 
subcontractor cost or pricing data to the Government as part of its own 
cost or pricing data.
    (c) Any contractor or subcontractor that is required to submit cost 
or pricing data also shall obtain and analyze cost or pricing data 
before awarding any subcontract, purchase order, or modification 
expected to exceed the cost or pricing data threshold, unless

[[Page 267]]

an exception in 15.403-1(b) applies to that action.
    (1) The contractor shall submit, or cause to be submitted by the 
subcontractor(s), cost or pricing data to the Government for 
subcontracts that are the lower of either--
    (i) $10,000,000 or more; or
    (ii) Both more than the pertinent cost or pricing data threshold and 
more than 10 percent of the prime contractor's proposed price, unless 
the contracting officer believes such submission is unnecessary.
    (2) The contracting officer may require the contractor or 
subcontractor to submit to the Government (or cause submission of) 
subcontractor cost or pricing data below the thresholds in paragraph 
(c)(1) of this subsection that the contracting officer considers 
necessary for adequately pricing the prime contract.
    (3) Subcontractor cost or pricing data shall be submitted in the 
format provided in Table 15-2 of 15.408 or the alternate format 
specified in the solicitation.
    (4) Subcontractor cost or pricing data shall be current, accurate, 
and complete as of the date of price agreement, or, if applicable, an 
earlier date agreed upon by the parties and specified on the 
contractor's Certificate of Current Cost or Pricing Data. The contractor 
shall update subcontractor's data, as appropriate, during source 
selection and negotiations.
    (5) If there is more than one prospective subcontractor for any 
given work, the contractor need only submit to the Government cost or 
pricing data for the prospective subcontractor most likely to receive 
the award.