[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: 48CFR15.404-3]



[Page 276-277]

 

            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



[[Page 277]]



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 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.