Federal Acquisition Regulation
Solicitation provisions and contract clauses
FAR 15.408
(a) Changes or Additions to Make-or-Buy Program . The contracting officer shall insert the clause at 52.215-9, Changes or Additions to Make-or-Buy Program, in solicitations and contracts when it is contemplated that a make-or-buy program will be incorporated in the contract. If a less economical "make" or "buy" categorization is selected for one or more items of significant value, the contracting officer shall use the clause with- (1) Its Alternate I, if a fixed-price incentive contract is contemplated; or (2) Its Alternate II, if a cost-plus-incentive-fee contract is contemplated. (b) Price Reduction for Defective Certified Cost or Pricing Data . The contracting officer shall, when contracting by negotiation, insert the clause at 52.215-10 , Price Reduction for Defective Certified Cost or Pricing Data, in solicitations and contracts when it is contemplated that certified cost or pricing data will be required from the contractor or any subcontractor (see 15.403-4 ). (c) Price Reduction for Defective Certified Cost or Pricing Data-Modifications . The contracting officer shall, when contracting by negotiation, insert the clause at 52.215-11 , Price Reduction for Defective Certified Cost or Pricing Data—Modifications, in solicitations and contracts when it is contemplated that certified cost or pricing data will be required from the contractor or any subcontractor (see 15.403-4 ) for the pricing of contract modifications, and the clause prescribed in paragraph (b) of this section has not been included. (d) Subcontractor Certified Cost or Pricing Data . The contracting officer shall— (1) Insert the clause at 52.215-12 , Subcontractor Certified Cost or Pricing Data, in solicitations and contracts when the clause prescribed in paragraph (b) of this section is included; or (2) Upon the request of a contractor that was required to submit certified cost or pricing data in connection with a prime contract entered into before July 1, 2018, the contracting officer shall modify the contract without requiring consideration, to replace clause 52.215-12 , Subcontractor Certified Cost or Pricing Data, with its Alternate I. (e) Subcontractor Certified Cost or Pricing Data-Modifications . The contracting officer shall— (1) Insert the clause at 52.215-13 , Subcontractor Certified Cost or Pricing Data—Modifications, in solicitations and contracts when the clause prescribed in paragraph (c) of this section is included; or (2) Upon the request of a contractor that was required to submit certified cost or pricing data in connection with a prime contract entered into before July 1, 2018, the contracting officer shall modify the contract without requiring consideration, to replace clause 52.215-13 , Subcontractor Certified Cost or Pricing Data—Modifications, with its Alternate I. (f) Integrity of Unit Prices. (1) The contracting officer shall insert the clause at 52.215-14 , Integrity of Unit Prices, in solicitations and contracts except for- (i) Acquisitions at or below the simplified acquisition threshold; (ii) Construction or architect-engineer services under part 36; (iii) Utility services under part 41; (iv) Service contracts where supplies are not required; (v) Acquisitions of commercial products and commercial services; and (vi) Contracts for petroleum products. (2) The contracting officer shall insert the clause with its Alternate I when contracting without adequate price competition or when prescribed by agency regulations. (g) Pension Adjustments and Asset Reversions . The contracting officer shall insert the clause at 52.215-15 , Pension Adjustments and Asset Reversions, in solicitations and contracts for which it is anticipated that certified cost or pricing data will be required or for which any preaward or postaward cost determinations will be subject to part 31. (h) Facilities Capital Cost of Money . The contracting officer shall insert the provision at 52.215-16 , Facilities Capital Cost of Money, in solicitations expected to result in contracts that are subject to the cost principles for contracts with commercial organizations (see subpart Contracts with Commercial Organizations (FAR 31.2) ). (i) Waiver of Facilities Capital Cost of Money. If the prospective contractor does not propose facilities capital cost of money in its offer, the contracting officer shall insert the clause at 52.215-17 , Waiver of Facilities Capital Cost of Money, in the resulting contract. (j) Reversion or Adjustment of Plans for Postretirement Benefits (PRB) Other Than Pensions . The contracting officer shall insert the clause at 52.215-18, Reversion or Adjustment of Plans for Postretirement Benefits (PRB) Other Than Pensions, in solicitations and contracts for which it is anticipated that certified cost or pricing data will be required or for which any preaward or postaward cost determinations will be subject to part 31. (k) Notification of Ownership Changes . The contracting officer shall insert the clause at 52.215-19 , Notification of Ownership Changes, in solicitations and contracts for which it is contemplated that certified cost or pricing data will be required or for which any preaward or postaward cost determination will be subject to subpart Contracts with Commercial Organizations (FAR 31.2) . (l) Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data . Considering the hierarchy at Pricing policy (FAR 15.402) , the contracting officer shall insert the provision at 52.215-20 , Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data, in solicitations if it is reasonably certain that certified cost or pricing data or data other than certified cost or pricing data will be required. This provision also provides instructions to offerors on how to request an exception from the requirement to submit certified cost or pricing data. The contracting officer shall- (1) Use the provision with its Alternate I to specify a format for certified cost or pricing data other than the format required by Table 15-2 of this section; (2) Use the provision with its Alternate II if copies of the proposal are to be sent to the ACO and contract auditor; (3) Use the provision with its Alternate III if submission via electronic media is required; and (4) Replace the basic provision with its Alternate IV if certified cost or pricing data are not expected to be required because an exception may apply, but data other than certified cost or pricing data will be required as described in 15.403-3 . (m) Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data-Modifications . Considering the hierarchy at Pricing policy (FAR 15.402) , the contracting officer shall insert the clause at 52.215-21 , Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data-Modifications, in solicitations and contracts if it is reasonably certain that certified cost or pricing data or data other than certified cost or pricing data will be required for modifications. This clause also provides instructions to contractors on how to request an exception from the requirement to submit certified cost or pricing data. The contracting officer shall- (1) Use the clause with its Alternate I to specify a format for certified cost or pricing data other than the format required by Table 15-2 of this section; (2) Use the clause with its Alternate II if copies of the proposal are to be sent to the ACO and contract auditor; (3) Use the clause with its Alternate III if submission via electronic media is required; and (4) Replace the basic clause with its Alternate IV if certified cost or pricing data are not expected to be required because an exception may apply, but data other than certified cost or pricing data will be required as described in 15.403-3 . (n) Limitations on Pass-Through Charges. (1) The contracting officer shall insert the provision at 52.215-22 , Limitations on Pass-Through Charges-Identification of Subcontract Effort, in solicitations containing the clause at 52.215-23. (2) (i) Except as provided in paragraph (n)(2)(ii), the contracting officer shall insert the clause 52.215-23 , Limitations on Pass-Through Charges, in solicitations and contracts including task or delivery orders as follows: (A) For civilian agencies, insert the clause when- (1) The total estimated contract or order value exceeds the simplified acquisition threshold as defined in section Definitions (FAR 2.101) and (2) The contemplated contract type is expected to be a cost-reimbursement type contract as defined in subpart Cost-Reimbursement Contracts (FAR 16.3) ; or (B) For DoD, insert the clause when- (1) The total estimated contract or order value exceeds the threshold for obtaining cost or pricing data in 15.403-4 ; and (2) The contemplated contract type is expected to be any contract type except- (i) A firm-fixed-price contract awarded on the basis of adequate price competition; (ii) A fixed-price contract with economic price adjustment awarded on the basis of adequate price competition; (iii) A firm-fixed-price contract for the acquisition of a commercial product or commercial service; (iv) A fixed-price contract with economic price adjustment, for the acquisition of a commercial product or commercial service; (v) A fixed-price incentive contract awarded on the basis of adequate price competition; or (vi) A fixed-price incentive contract for the acquisition of a commercial product or commercial service. (ii) The clause may be used when the total estimated contract or order value is below the thresholds identified in Solicitation provisions and contract clauses (FAR 15.408) (n)(2)(i) and for any contract type, when the contracting officer determines that inclusion of the clause is appropriate. (iii) Use the clause 52.215-23 with its Alternate I when the contracting officer determines that the prospective contractor has demonstrated that its functions provide added value to the contracting effort and there are no excessive pass-through charges. Table 15-2—Instructions for Submitting Cost/Price Proposals When Certified Cost or Pricing Data Are Required This document provides instructions for preparing a contract pricing proposal when certified cost or pricing data are required. Note 1. There is a clear distinction between submitting certified cost or pricing data and merely making available books, records, and other documents without identification. The requirement for submission of certified cost or pricing data is met when all accurate certified cost or pricing data reasonably available to the offeror have been submitted, either actually or by specific identification, to the Contracting Officer or an authorized representative. As later data come into your possession, it should be submitted promptly to the Contracting Officer in a manner that clearly shows how the data relate to the offeror’s price proposal. The requirement for submission of certified cost or pricing data continues up to the time of agreement on price, or an earlier date agreed upon between the parties if applicable. Note 2 . By submitting your proposal, you grant the Contracting Officer or an authorized representative the right to examine records that formed the basis for the pricing proposal. That examination can take place at any time before award. It may include those books, records, documents, and other types of factual data (regardless of form or whether the data are specifically referenced or included in the proposal as the basis for pricing) that will permit an adequate evaluation of the proposed price. I. General Instructions A. You must provide the following information on the first page of your pricing proposal: (1) Solicitation, contract, and/or modification number; (2) Name and address of offeror; (3) Name and telephone number of point of contact; (4) Name of contract administration office (if available); (5) Type of contract action (that is, new contract, change order, price revision/redetermination, letter contract, unpriced order, or other); (6) Proposed cost; profit or fee; and total; (7) Whether you will require the use of Government property in the performance of the contract, and, if so, what property; (8) Whether your organization is subject to cost accounting standards; whether your organization has submitted a CASB Disclosure Statement, and if it has been determined adequate; whether you have been notified that you are or may be in noncompliance with your Disclosure Statement or CAS (other than a noncompliance that the cognizant Federal agency official has determined to have an immaterial cost impact), and, if yes, an explanation; whether any aspect of this proposal is inconsistent with your disclosed practices or applicable CAS, and, if so, an explanation; and whether the proposal is consistent with your established estimating and accounting principles and procedures and FAR part 31, Cost Principles, and, if not, an explanation; (9) The following statement: This proposal reflects our estimates and/or actual costs as of this date and conforms with the instructions in FAR 15.403-5 (b)(1) and Table 15-2. By submitting this proposal, we grant the Contracting Officer and authorized representative(s) the right to examine, at any time before award, those records, which include books, documents, accounting procedures and practices, and other data, regardless of type and form or whether such supporting information is specifically referenced or included in the proposal as the basis for pricing, that will permit an adequate evaluation of the proposed price. (10) Date of submission; and (11) Name, title, and signature of authorized representative. B. In submitting your proposal, you must include an index, appropriately referenced, of all the certified cost or pricing data and information accompanying or identified in the proposal. In addition, you must annotate any future additions and/or revisions, up to the date of agreement on price, or an earlier date agreed upon by the parties, on a supplemental index. C. As part of the specific information required, you must submit, with your proposal- (1) Certified cost or pricing data (as defined at FAR Definitions (FAR 2.101) ). You must clearly identify on your cover sheet that certified cost or pricing data are included as part of the proposal. (2) Information reasonably required to explain your estimating process, including- (i) The judgmental factors applied and the mathematical or other methods used in the estimate, including those used in projecting from known data; and (ii) The nature and amount of any contingencies included in the proposed price. D. You must show the relationship between line item prices and the total contract price.You must attach cost-element breakdowns for each proposed line item, using the appropriate format prescribed in the "Formats for Submission of Line Item Summaries" section of this table. You must furnish supporting breakdowns for each cost element, consistent with your cost accounting system. E. When more than one line item is proposed, you must also provide summary total amounts covering all line items for each element of cost. F. Whenever you have incurred costs for work performed before submission of a proposal, you must identify those costs in your cost/price proposal. G. If you have reached an agreement with Government representatives on use of forward pricing rates/factors, identify the agreement, include a copy, and describe its nature. H. As soon as practicable after final agreement on price or an earlier date agreed to by the parties, but before the award resulting from the proposal, you must, under the conditions stated in FAR 15.406-2 , submit a Certificate of Current Cost or Pricing Data. II. Cost Elements Depending on your system, you must provide breakdowns for the following basic cost elements, as applicable: A. Materials and services . Provide a consolidated priced summary of individual material quantities included in the various tasks, orders, or line items being proposed and the basis for pricing (vendor quotes, invoice prices, etc.). Include raw materials, p
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