When is certificate of cost and pricing data required

Under some circumstances, the contracting agency may decide to continue the acquisition by negotiating and making an award without issuing a new solicitation 7. Such negotiations on bids are then governed by Part 15 of the FAR, and are subject to the Certification rules. Note: If a part of a sealed bid is negotiated before award, the entire contract is then a negotiated contract, thus requiring certification on the entire contract.

When submitting a certificate of current cost or data pricing under FAR Subsection b distinguishes between fact and the judgment of the contractor.

Rather, the contractor certifies that the data upon which the judgment or estimate was based, is correct and distinguishable. In short, the contractor certifies that, as of the date of certification, the information used to determine pricing, future costs, or future projections is accurate.

The Certification must also include the factual cost or pricing data that will be used to support any advance agreements and forward pricing rate agreements that are part of the proposal. Some examples of factual items that are to be certified as correct and accurate include: overhead, bond, gross receipts tax rates and payments, labor, burden rates, timesheet data, equipment rates, material costs, and subcontract and supplier written or verbal quotations.

Some examples of judgmental items that could and are likely to change during the life of the contract include: profit, productivity rates, material quantities, price escalation, etc. When a Certificate of Current Cost or Pricing Data is required, contractors must be aware of what information they are certifying, and the implications of certifying too much.

If contractors fail to distinguish between what is fact and what is judgmental, they run the risk of false claims violations. Accordingly, a seemingly small error or oversight on the Certificate could have dire consequences in the future. The prudent contractor should consult with a contracting expert before submitting a Certificate, to ensure that the correct data is being certified, and that all pertinent FAR provisions are included and addressed.

So, please feel free to give us a call. Price adjustment amounts must consider both increases and decreases e. This requirement does not apply when unrelated and separately priced changes for which certified 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 certified 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 The head of the contracting activity shall justify the requirement for certified cost or pricing data.

The documentation shall include a written finding that certified cost or pricing data are necessary to determine whether the price is fair and reasonable and the facts supporting that finding.

See See FAR In effect, this situation would require the task order to be treated like a mini-contract for a new, stand-alone requirement even though a certification was obtained for the rates in the initial IDIQ contract.

If the task order is only buying hours and the rates were already certified and included in the initial IDIQ contract, then certified cost or pricing data should not be necessary for the individual task order.

Please note that you should expect to receive a response from our team, regarding your inquiry, within 2 business days. Turn on more accessible mode. Turn off more accessible mode.