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                            52.214-27 Price Reduction for Defective Certified Cost or Pricing Data-Modifications-Sealed Bidding.
        
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FAC Number: 2024-03 Effective Date: 02/23/2024
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Subpart52.052.152.252.3
Section52.20052.20152.20252.20352.20452.20552.20652.20752.20852.20952.21052.21152.21252.21352.21452.21552.21652.21752.21852.21952.22052.22152.22252.22352.22452.22552.22652.22752.22852.22952.23052.23152.23252.23352.23452.23552.23652.23752.23852.23952.24052.24152.24252.24352.24452.24552.24652.24752.24852.24952.25052.25152.25252.253
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52.214-27 Price Reduction for Defective Certified Cost or Pricing Data-Modifications-Sealed Bidding.52.214-27 Price Reduction for	Defective Certified Cost or Pricing Data-Modifications-Sealed Bidding.       As prescribed	in 14.201-7(b), insert	the following clause:          Price	Reduction for Defective Certified Cost or Pricing Data-Modifications-Sealed	Bidding (Jun 2020)                                       (a) 						            This clause shall become operative	only for any modification to this contract involving aggregate increases	and/or decreases in costs, plus applicable profits, expected to	exceed the threshold for the submission of certified cost or pricing data	in Federal Acquisition Regulation (FAR)  15.403-4(a)(1) on the	date of execution of the modification, except that this clause does	not apply to a modification if an exception under FAR  15.403-1(b)	applies.                                          (b) 						            If any price,	including profit, negotiated in connection with any modification	under this clause, was increased by any significant amount because	(1) the Contractor or a subcontractor furnished certified cost or	pricing data that were not complete, accurate, and current as certified	in its Certificate of Current Cost or Pricing Data, (2)a subcontractor	or prospective subcontractor furnished the Contractor certified	cost or pricing data that were not complete, accurate, and current	as certified in the Contractor’s Certificate of Current Cost or	Pricing Data, or (3) any of these parties furnished data of any description	that were not accurate, the price shall be reduced accordingly and	the contract shall be modified to reflect the reduction. This right	to a price reduction is limited to that resulting from defects in	data relating to modifications for which this clause becomes operative	under paragraph (a) of this clause                                          (c) 						            Any reduction	in the contract price under paragraph (b) of this clause due to	defective data from a prospective subcontractor that was not subsequently	awarded the subcontract shall be limited to the amount, plus applicable	overhead and profit markup, by which (1) the actual subcontract	or (2) the actual cost to the Contractor, if there was no subcontract,	was less than the prospective subcontract cost estimate submitted	by the Contractor; provided, that the actual subcontract price was	not itself affected by defective certified cost or pricing data.                                          (d)                                                         (1) 								                If	the Contracting Officer determines under paragraph (b) of this clause	that a price or cost reduction should be made, the Contractor agrees	not to raise the following matters as a defense:                                                                           (i) 										                    The Contractor	or subcontractor was a sole source supplier or otherwise was in	a superior bargaining position and thus the price of the contract	would not have been modified even if accurate, complete, and current	certified cost or pricing data had been submitted.                                                                              (ii) 										                    The Contracting	Officer should have known that the certified cost or pricing data	in issue were defective even though the Contractor or subcontractor	took no affirmative action to bring the character of the data to	the attention of the Contracting Officer.                                                                              (iii) 										                    The contract	was based on an agreement about the total cost of the contract and	there was no agreement about the cost of each item procured under	the contract.                                                                              (iv) 										                    The Contractor	or subcontractor did not submit a Certificate of Current Cost or	Pricing Data.                                                                                                           (2)                                                                           (i) 										                    Except	as prohibited by subdivision (d)(2)(ii) of this clause, an offset	in an amount determined appropriate by the Contracting Officer based	upon the facts shall be allowed against the amount of a contract	price reduction if-                                                                                             (A) 												                        The Contractor certifies to the	Contracting Officer that, to the best of the Contractor’s knowledge	and belief, the Contractor is entitled to the offset in the amount	requested; and                                                                                                (B) 												                        The Contractor	proves that the certified cost or pricing data were available before	the date of agreement on the price of the contract (or price of	the modification) and that the data were not submitted before such	date.                                                                                                                                         (ii) 										                    An offset	shall not be allowed if-                                                                                             (A) 												                        The understated data was known	by the Contractor to be understated when the Certificate of Current	Cost or Pricing Data was signed; or                                                                                                (B) 												                        The Government	proves that the facts demonstrate that the contract price would	not have increased in the amount to be offset even if the available	data had been submitted before the date of agreement on price.                                                                                                                                                                                       (e) 						            If any	reduction in the contract price under this clause reduces the price	of items for which payment was made prior to the date of the modification	reflecting the price reduction, the Contractor shall be liable to	and shall pay the United States at the time such overpayment is	repaid-                                                         (1) 								                Interest compounded daily, as required	by   26U.S.C.6622, the	amount of such overpayment to be computed from the date(s) of overpayment	to the Contractor to the date the Government is repaid by the Contractor	at the applicable underpayment rate effective for each quarter prescribed	by the Secretary of the Treasury under   26 U.S.C. 6621(a)(2); and                                                            (2) 								                A penalty	equal to the amount of the overpayment, if the Contractor or subcontractor	knowingly submitted certified cost or pricing data which were incomplete,	inaccurate, or noncurrent.                                                                    (End of clause)    **Parent topic:**  52.214 [Reserved]
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