PGI 215.403-3 Requiring data other than

certified cost or pricing data.

To the extent that certified cost or pricing data are not required by FAR 15.403-4 and there is no

other means for the contracting officer to determine that prices are fair and reasonable, the offeror

is required to submit “data other than certified cost or pricing data” (see definition at FAR 2.101). In

accordance with FAR 15.403-3(a), the offeror must provide appropriate data on the prices at which

the same or similar items have previously been sold, adequate for determining the reasonableness of

the price. The following clarifies these requirements:

(1) Data other than certified cost or pricing data. When certified cost or pricing data are not

required, the contracting officer must obtain whatever data is necessary in order to determine the

reasonableness of the price. The FAR defines this as “data other than certified cost or pricing data.”

When TINA does not apply and there is no other means of determining that prices are fair and

reasonable, the contracting officer must obtain appropriate data on the prices at which the same or

similar items have been sold previously, adequate for evaluating the reasonableness of the price.

Sales data must be comparable to the quantities, capabilities, specifications, etc., of the product or

service proposed. Sufficient steps must be taken to verify the integrity of the sales data, to include

assistance from the Defense Contract Management Agency, the Defense Contract Audit Agency,

and/or other agencies if required. See PGI 215.404-1 (DFARS/PGI view) for more detailed

procedures for obtaining data from offerors to determine price reasonableness.

(2) Previously been sold. Contracting officers shall request offerors to provide data related to prior

sales (or “offered for sale”) in support of price reasonableness determinations.

(3) Adequacy of sales data for pricing. The contracting officer must determine if the prior sales data

is sufficient for determining that prices are fair and reasonable. If the sales data is not sufficient,

additional data shall be obtained, including cost data if necessary. See PGI 215.404-1 (DFARS/PGI

view) for more detailed procedures for obtaining whatever data is needed to determine fair and

reasonable prices.

(4) Analysis of historical prices paid by the Government.

(i) The contracting officer shall consider prices paid by the Government and commercial customers.

The contracting officer shall not rely solely on a prior price paid by the Government, without further

analysis (see FAR 15.404).

(A) The contracting officer shall verify and document that sufficient analysis was performed to

determine that the prior price was fair and reasonable. Sometimes, due to exigent situations,

supplies or services are purchased even though an adequate price or cost analysis could not be

performed. The problem is exacerbated when other contracting officers assume these prices were

adequately analyzed and determined to be fair and reasonable.

(B) The contracting officer also shall investigate and document the following considerations:

(1) verify that the quantities were similar for pricing purposes, making adjustments as necessary to

ensure comparability with the current quantity requirement;

(2) Consider whether the historical purchases were recent enough to be relevant for the purpose of
establishing price reasonableness of the current acquisition, and escalate or deflate the historical

prices as appropriate to facilitate comparison to the current proposed price; and

(3) Validate that the terms and conditions associated with the historical purchases were comparable

to the current terms and conditions, or adjust the historical prices in a manner that accounts for the

materially differing terms and conditions .

(ii) Not verifying that a previous analysis was performed, or the consistencies in quantities, has been

a recurring issue on sole source commercial products and commercial services reported by oversight

organizations. Sole source commercial products and commercial services require extra attention to

verify that previous prices paid on Government contracts were sufficiently analyzed and determined

to be fair and reasonable.

(iii) At a minimum, a contracting officer reviewing price history shall discuss the basis of previous

prices paid with the contracting organization that previously bought the item. These discussions

shall be documented in the contract file.

(5) Canadian Commercial Corporation. All contracts with the Canadian Commercial Corporation

(CCC) are placed in accordance with the practices, policies and procedures of the Government of

Canada covering procurement for defense purposes (See PGI 225.870 ). Contracting Officers may

rely on the confirmation and endorsement of the offer from the Canadian Commercial Corporation at

225.870-3(a) as an endorsement of the cost/price as no more than would be charged to the Canadian

government.

(i) When 252.215-7003 or 252.215-7004 are included in a solicitation with the Canadian Commercial

Corporation, the data required by paragraph (b)(i) and (ii), in concert with the confirmation and

endorsement of the offer, is intended to meet the requirements of FAR 15.404-1 for documentation

of fair and reasonable pricing.

(ii) Use of 252.215-7003 or 252.215-7004 in sole source acquisitions not meeting the threshold at

215.408(2)(i)(A) or (ii)(A)(1) or competitive acquisitions at any dollar value shall be supported by a

determination and finding justifying the anticipated need for data other than certified cost or pricing

data to determine a fair and reasonable price.

(iii) When the contracting officer anticipates the need for additional data to establish a fair and

reasonable price, specific data should be requested at time of solicitation as detailed in DFARS

252.215-7003.

(iv) Examples of clause use:

Scenario Requirement

Sole source to CCC, fixed price,

with estimated value of $600

million.

Include provision and clause in accordance with

215.408(2)(i)(A)(2)and (ii)(A(1)(ii), respectively, because

estimated value exceeds $500 million.

Sole source to CCC, cost

reimbursement, with estimated

value of $800,000.

Include provision and clause in accordance with

215.408(2)(i)(A)(1)and (ii)(A(1)(i), respectively, because

estimated value exceeds $750,000.
Sole source to CCC, costreimbursement, with estimated

value of $500,000.

Do not include provision and clause, unless D&F is

approved in accordance with 215.408(2)(i)(B)and

(ii)(A)(2)), respectively, because estimated value does

not exceed $750.000.

Sole source to CCC, fixed price,

with estimated value of $800,000

Do not include provision and clause, unless D&F is

approved in accordance with 215.408(2)(i)(B)and

(ii)(A)(2)), respectively, because estimated value does

not exceed $500 million.

Modifications to contracts that

include the clause 252.215-7004.

If 252.215-7004 is included in the contract, then data

are required for modifications valued above the

simplified acquisition threshold, or a higher threshold

specified in the solicitation by the contracting officer, in

accordance with 252.215-7004(b).

(6) Reporting requirements.

(i) All contracting officers are required to document, collect, and provide a report in the standard

digital format (see paragraph (ii) of this section to the (HCA) of all denials of contracting officer

requests to offerors/contractors for data other than certified cost or pricing data that are not

resolved through the elevation process at PGI 215.404-1 (a)(i)(A) and, therefore, require a

determination by the (HCA) in accordance with FAR 15.403-3(a)(4).

(ii) The (HCA) shall consolidate and validate this information for all impacted contracts and

modifications regardless of dollar value and submit the information in the standard digital format

available at https://www.acq.osd.mil/dpap/dars/pgi/docs/Denials_Template_1-24-21. A completed

report or note of no findings is required to the Principal Director, Defense Pricing and Contracting

(DPC). Reports are due to DPC 30 days after the end of each quarterly reporting period. Transmit

reports electronically to DPC at osd.pentagon.ousd-a-s.mbx.dpc-pcf@mail.mil.

(7) Delegation. The HCA may delegate, no lower than one level above the contracting officer, the

authority to determine whether it is in the best interest of the Government to issue an award in

accordance with DFARS 215.403-3(a)(4). This designee may be the individual responsible for

approval of the prenegotiation objective (see DFARS 215.406-1), unless that individual is the

contacting officer.

Parent topic: PGI 215.403 Obtaining certified cost or pricing data.