[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR15.403-4]



[Page 271-272]

 

            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. 15.403-4  Requiring cost or pricing data (10 U.S.C. 2306a and 41 U.S.C. 254b).



    (a)(1) The contracting officer must obtain cost or pricing data only 

if the contracting officer concludes that none of the exceptions in 

15.403-1(b) applies. However, if the contracting officer has sufficient 

information available to determine price reasonableness, then the 

contracting officer should consider requesting a waiver under the 

exception at 15.403-1(b)(4). The threshold for obtaining cost or pricing 

data is $550,000. Unless an exception applies, cost or pricing data are 

required before accomplishing any of the following actions expected to 

exceed the current threshold or, for existing contracts, the threshold 

specified in the contract:

    (i) The award of any negotiated contract (except for undefinitized 

actions such as letter contracts).

    (ii) The award of a subcontract at any tier, if the contractor and 

each higher-tier subcontractor were required to submit cost or pricing 

data (but see waivers at 15.403-1(c)(4)).

    (iii) The modification of any sealed bid or negotiated contract 

(whether or not cost or pricing data were initially required) or any 

subcontract covered by paragraph (a)(1)(ii) of this subsection. Price 

adjustment amounts must consider both increases and decreases (e.g., a 

$200,000 modification resulting from a reduction of $400,000 and an 

increase of $200,000 is a pricing adjustment exceeding $550,000). This 

requirement does not apply when unrelated and separately priced changes 

for which cost or pricing data would not otherwise be required are 

included for administrative convenience in the same modification. 

Negotiated final pricing actions (such as termination settlements and 

total final price agreements for fixed-price incentive and 

redeterminable contracts) are contract modifications requiring cost or 

pricing data if--

    (A) The total final price agreement for such settlements or 

agreements exceeds the pertinent threshold set forth at paragraph (a)(1) 

of this subsection; or

    (B) The partial termination settlement plus the estimate to complete 

the continued portion of the contract exceeds the pertinent threshold 

set forth at paragraph (a)(1) of this subsection (see 49.105(c)(15)).

    (2) Unless prohibited because an exception at 15.403-1(b) applies, 

the head of the contracting activity, without power of delegation, may 

authorize the contracting officer to obtain cost or pricing data for 

pricing actions below the pertinent threshold in paragraph (a)(1) of 

this subsection, provided the action exceeds the simplified acquisition 

threshold. The head of the contracting activity shall justify the 

requirement for cost or pricing data. The documentation shall include a 

written finding that cost or pricing data are necessary to determine 

whether the price is fair and reasonable and the facts supporting that 

finding.

    (b) When cost or pricing data are required, the contracting officer 

shall require the contractor or prospective contractor to submit to the 

contracting officer (and to have any subcontractor or prospective 

subcontractor submit to the prime contractor or appropriate 

subcontractor tier) the following in support of any proposal:

    (1) The cost or pricing data.

    (2) A certificate of current cost or pricing data, in the format 

specified in 15.406-2, certifying that to the best of its knowledge and 

belief, the cost or pricing data were accurate, complete, and current as 

of the date of agreement on price or, if applicable, an earlier date 

agreed upon between the parties that is as close as practicable to the 

date of agreement on price.

    (c) If cost or pricing data are requested and submitted by an 

offeror, but an exception is later found to apply, the data must not be 

considered cost or pricing data as defined in 2.101 and must not be 

certified in accordance with 15.406-2.

    (d) The requirements of this subsection also apply to contracts 

entered



[[Page 272]]



into by an agency on behalf of a foreign government.



[62 FR 51230, Sept. 30, 1997, as amended at 65 FR 60553, Oct. 11, 2000; 

66 FR 2129, Jan. 10, 2001]