20092 Federal Register / Vol. 72, No. 77 / Monday, April 23, 2007 / Proposed Rules 

Captain of the Port Lake Michigan, or 

his designated on-scene representative. 

(2) This safety zone is closed to all 

vessel traffic, except as may be 

permitted by the Captain of the Port 

Lake Michigan or his designated onscene representative. 

(3) The ‘‘on-scene representative’’ of 

the Captain of the Port is any Coast 

Guard commissioned, warrant or petty 

officer who has been designated by the 

Captain of the Port to act on his behalf. 

The on-scene representative of the 

Captain of the Port will be aboard either 

a Coast Guard or Coast Guard Auxiliary 

vessel. The Captain of the Port or his 

designated on-scene representative may 

be contacted via VHF Channel 16. 

(4) Vessel operators desiring to enter 

or operate within the safety zone shall 

contact the Captain of the Port Lake 

Michigan or his on-scene representative 

to obtain permission to do so. Vessel 

operators given permission to enter or 

operate in the safety zone must comply 

with all directions given to them by the 

Captain of the Port Lake Michigan or his 

on-scene representative. 

Dated: April 3, 2007. 

Bruce C. Jones, 

Captain, U.S. Coast Guard, Captain of the 

Port Lake Michigan. 

[FR Doc. E7–7628 Filed 4–20–07; 8:45 am] 

BILLING CODE 4910–15–P 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 2, 3, and 52 

[FAR Case 2006–007; Docket 2007–0001; 

Sequence 1; FAR Case 2006–007, 

Contractor Code of Ethics and Business 

Conduct] 

RIN 9000–AK67 

Federal Acquisition Regulation; FAR 

Case 2006–0007, Contractor Code of 

Ethics and Business Conduct; 

Reopening of Comment Period 

AGENCIES: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Proposed rule; Reopening of 

comment period. 

SUMMARY: The Civilian Agency 

Acquisition Council and the Defense 

Acquisition Regulations Council 

(Councils) are proposing to amend the 

Federal Acquisition Regulation (FAR) to 

address Contractor Code of Ethics and 

Business Conduct and the display of 

Federal agency Office of the Inspector 

General (OIG) Fraud Hotline Poster. The 

comment period is extended an 

additional 30 days to provide additional 

time for interested parties to review the 

proposed FAR changes. 

DATES: Interested parties should submit 

comments in writing on or before May 

23, 2007 to be considered in the 

formulation of a proposed rule. 

ADDRESSES: Submit comments 

identified by FAR case 2006–007 by any 

of the following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Search for any 

document by first selecting the proper 

document types and selecting ‘‘Federal 

Acquisition Regulation’’ as the agency 

of choice. At the ‘‘Keyword’’ prompt, 

type in the FAR case number (for 

example, FAR Case 2006–007) and click 

on the ‘‘Submit’’ button. Please include 

any personal and/or business 

information inside the document.You 

may also search for any document by 

clicking on the ‘‘Advanced search/ 

document search’’ tab at the top of the 

screen, selecting from the agency field 

‘‘Federal Acquisition Regulation’’, and 

typing the FAR case number in the 

keyword field. Select the ‘‘Submit’’

button. 

• Fax: 202–501–4067. 

• Mail: General Services 

Administration, Regulatory Secretariat 

(VIR), 1800 F Street, NW., Room 4035, 

ATTN: Laurieann Duarte, Washington, 

DC 20405. 

Instructions: Please submit comments 

only and cite FAR case 2006–007 in all 

correspondence related to this case. All 

comments received will be posted 

without change to http:// 

www.regulations.gov, including any 

personal and/or business confidential 

information provided. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Ernest Woodson, Procurement Analyst, 

at (202) 501–3775 for clarification of 

content. For information pertaining to 

status or publication schedules, contact 

the FAR Secretariat at (202) 501–4755. 

Please cite FAR case 2006–007. 

SUPPLEMENTARY INFORMATION: The 

Councils published a proposed rule in 

the Federal Register at 72 FR 7588, 

February 16, 2007. To allow additional 

time for interested parties to review the 

proposed FAR changes, the comment 

period is extended for an additional 30–

days. 

Dated: April 17, 2007 

Al Matera, 

Acting Director,Acquisition Policy Division. 

[FR Doc. 07–1985 Filed 4–20–07; 8:45 am] 

BILLING CODE 6820–EP–S 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 2, 4, 12, 14, 15, 16, 19, 

27, 30, 31, 32, 42, 44, 49, and 52 

[FAR Case 2005–036; Docket 2007-001, 

Sequence 7] 

RIN: 9000–AK74 

Federal Acquisition Regulation; FAR 

Case 2005–036, Definition of Cost or 

Pricing Data 

AGENCIES: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Proposed rule. 

SUMMARY: The Civilian Agency 

Acquisition Council and the Defense 

Acquisition Regulations Council 

(Councils) are proposing to amend the 

Federal Acquisition Regulation (FAR) to 

revise the definition of ‘‘cost or pricing 

data’’; change the term ‘‘information 

other than cost or pricing data’’ to ‘‘data 

other than certified cost or pricing 

data’’; add a definition of ‘‘certified cost 

or pricing data’’ to make the terms and 

definitions consistent with 10 U.S.C. 

2306a and 41 U.S.C. 254b and more 

understandable to the general reader; 

change terminology throughout the 

FAR; and clarify the need to obtain data 

other than certified cost or pricing data 

when there is no other means to 

determine fair and reasonable pricing 

during price analysis. 

DATES: Interested parties should submit 

written comments to the FAR 

Secretariat on or before June 22, 2007 to 

be considered in the formulation of a 

final rule. 

ADDRESSES: Submit comments 

identified by FAR case 2005–036 by any 

of the following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Search for any 

document by first selecting the proper 

document types and selecting ‘‘Federal 

Acquisition Regulation’’ as the agency 

of choice. At the ‘‘Keyword’’ prompt, 

type in FAR Case number Case 2005–

036 and click on the ‘‘Submit’’ button. 

Please include any personal and/or 


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business information inside the 

document. You may also search for any 

document by clicking on the ‘‘Advanced 

search/document search’’ tab at the top 

of the screen, selecting from the agency 

field ‘‘Federal Acquisition Regulation’’, 

and typing the FAR case number in the 

keyword field. Select the ‘‘Submit’’

button. 

• Fax: 202–501–4067. 

• Mail: General Services 

Administration, Regulatory Secretariat 

(VIR), 1800 F Street, NW, Room 4035, 

ATTN: Laurieann Duarte, Washington, 

DC 20405. 

Instructions: Please submit comments 

only and cite FAR case 2005–036 in all 

correspondence related to this case. All 

comments received will be posted 

without change to http:// 

www.regulations.gov, including any 

personal and/or business confidential 

information provided. 

FOR FURTHER INFORMATION CONTACT: 

Patrick Conley at (202) 501–4770 for 

clarification of content. For information 

pertaining to status or publication 

schedules, contact the FAR Secretariat 

at (202) 501–4755. Please cite FAR case 

2005–036. 

SUPPLEMENTARY INFORMATION: 

A. Background 

The Defense Acquisition Regulatory 

Council and the Civilian Agency 

Acquisition Council (the Councils) 

reviewed FAR 15.4 for needed 

clarification based on several events and 

an initial Defense Acquisition 

Regulation Supplement (DFARS) Case 

(2004–D019) that identified confusion 

concerning when cost or pricing data 

can and should be obtained. Several 

events identified confusion over the 

difference between ‘‘cost or pricing 

data’’ and ‘‘information other than cost 

or pricing data,’’ the requirement to 

obtain ‘‘information other than cost or 

pricing data,’’ and the requirement to 

submit ‘‘cost or pricing data’’ in 

accordance with the instructions at 

Table 15–2 at FAR 15.408. 

On May 30, 2001 the Department of 

Defense Inspector General (DoD IG) 

issued Report No. D2001–129 that 

identified a situation in which 

contracting officers did not obtain 

adequate pricing information or 

information other than cost or pricing 

data for justifying price reasonableness. 

As a result of the Inspector General 

report, in March 2002, the Director of 

Defense Procurement issued a 

memorandum, titled ‘‘Price Analysis 

and Price Reasonableness 

Determinations When Cost or Pricing 

Data are not Obtained,’’ to Defense 

agencies and military departments to 

reiterate the need to obtain sufficient 

pricing or cost data to justify that prices 

are fair and reasonable. 

A Defense Acquisition University 

(DAU) study on the ‘‘Tanker Lease 

Program: Acquisition Lessons Learned’’

questioned the consistency of the 

definition and usage of the term ‘‘cost or 

pricing data’’ in the FAR, DFARS and 

the statute. The study indicated that 

clarification is needed to show that both 

terms are referring to the same 

information/data. The study pointed out 

that the statutory language indicates that 

the distinguishing characteristic of 

certified cost or pricing data is 

certification, and not the level of detail 

of the cost or pricing data. 

In 2005, Congress expressed concern 

regarding an Air Force defective pricing 

case related to judgmental factors as cost 

or pricing data. Based on the legal issues 

raised in the case, Congress is 

concerned that FAR regulations are 

ambiguous, especially in the definition 

of cost or pricing data in FAR 2.101 and 

the discussion of cost or pricing data in 

Table 15–2. 

In its supplemental report dated 

October 24, 2005 for DFARS Case 2004–

D019, Commercial Item Acquisition, the 

DFARS Pricing Committee concluded 

that there appears to be a 

misunderstanding with the use of the 

terminology that is currently contained 

in the FAR and carried forward into the 

DFARS with regard to ‘‘cost or pricing 

data’’ and ‘‘information other than cost 

or pricing data.’’ The apparent 

misunderstanding leads to confusion 

over what information can be obtained 

under ‘‘information other than cost or 

pricing data.’’ The Councils believe that 

the terminology should be changed 

because they believe that it should be 

clear that the contracting officer should 

be free to ask for any information 

necessary to determine the price to be 

fair and reasonable. This could include 

any cost data or pricing data that would 

support price reasonableness even 

though certification is not required. The 

Councils believe it to be extremely 

important to resolve any 

misunderstanding amongst Government 

and contractor acquisition professionals 

by ensuring that the definition is fully 

clarified. 

The Councils researched the 

information identified, met with the Air 

Force General Counsel to discuss its 

findings and concerns about the 

defective pricing cases, obtained input 

from field personnel, and researched the 

Truth In Negotiations Act (TINA). The 

DoD IG also made a presentation to the 

Councils about recent findings and 

concerns. 

The Air Force General Counsel 

briefed the Councils on issues that arose 

during defective pricing cases related to 

the information that is required to be 

submitted by contractors, specifically 

related to Table 15–2 at FAR 15.408 and 

referenced at 52.215–20(b). They 

recommended that the Councils revise 

the clause to make it clear that the data 

in Table 15–2 are required to be 

submitted when TINA applies. 

The DoD IG briefed the Councils on 

recent findings related to reviews of sole 

source commercial item pricing and 

specifically about confusion over the 

contracting officer’s ability to obtain 

cost or pricing data (uncertified), sales 

information, and other data necessary to 

determine prices to be fair and 

reasonable. The DoD IG expressed a 

concern that current FAR language does 

not point out that 10 U.S.C. 2306a(d)(1) 

requires contracting officers to obtain 

‘‘at a minimum, appropriate 

information on the prices at which the 

same item or similar items have 

previously been sold, adequate for 

determining the reasonableness of the 

price.’’ The DoD IG also suggested a 

need to have a separate section in the 

FAR for the pricing of sole source 

commercial items (not based on 

adequate price competition). The DoD 

IG believes that the wording in the 

clause at 52.215.20 for obtaining 

information other than cost or pricing 

data should be part of the terms and 

conditions for contracts awarded under 

Part 12. The DoD IG also stated that 

during its reviews it encountered 

confusion about the determination of 

price reasonableness for ‘‘of a type’’

commercial items and the process for 

obtaining sufficient information to 

determine that the prices for those items 

are fair and reasonable. 

The Councils determined that the 

current definitions at FAR 2.101 for 

‘‘cost or pricing data’’ and ‘‘information 

other than cost or pricing data’’ need to 

be revised to be consistent with the 

requirements at 10 U.S.C. 2306a and 41 

U.S.C. 254b and should be better 

defined so it is clear that the underlying 

information is the same, but the 

requirement to certify that data 

distinguishes the TINA requirements. 

The Councils also concluded that FAR 

15.4 needs to be revised to clarify the 

need and authority to obtain a detailed 

cost estimate, including cost or pricing 

data, when there is no other means to 

determine fair and reasonable pricing 

during price analysis even though the 

cost or pricing data will not be certified. 

As part of this clarification, the Councils 

revised the provisions at 52.215–20 and 

52.215–21 to clarify the use of Table 15–

2 at FAR 15.408. However, the Councils 


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did not find that there should be a 

separate section for pricing commercial 

sole source (non-competitive) items. 

With these clarifications, the Councils 

believe the hierarchy at 15.402 applies 

and clearly provides the contracting 

officer with the authority to obtain 

whatever data is necessary to determine 

whether the proposed prices are fair and 

reasonable, up to and including a 

detailed cost estimate and cost or 

pricing data (but excluding a certificate) 

- whether a sole source or other 

situation is involved. 

The Councils decided to revise the 

definition of ‘‘cost or pricing data’’ to 

remove the sentence ‘‘Cost or pricing 

data are data requiring certification in 

accordance with 15.406–2,’’ as it makes 

the definition inconsistent with 10 

U.S.C. 2306a and 41 U.S.C. 254b, and 

replace this with a definition of 

‘‘certified cost or pricing data.’’ A 

definition of ‘‘cost or pricing data’’ that 

is consistent with 10 U.S.C. 2306a and 

41 U.S.C. 254b is added. 

The Councils also changed the term 

‘‘information other than cost or pricing 

data’’ to ‘‘data other than certified cost 

or pricing data’’ to be consistent with 10 

U.S.C. 2306a and 41 U.S.C. 254b. In 

addition, the Councils revised the 

definition to clarify that contracting 

officers are to obtain whatever 

information is necessary to determine 

that prices are fair and reasonable. This 

change clearly establishes that the 

underlying data can be the same 

(detailed cost estimates and cost or 

pricing data). The difference occurs 

when the pricing action meets the 

requirements at 10 U.S.C. 2306a(a)(1) 

and 41 U.S.C. 254b(a)(1); that data must 

be certified. Likewise, when the 

certification requirements at 10 U.S.C. 

2306a(a)(2) and 41 U.S.C. 254b(a)(2) do 

not apply, the contracting officer can 

obtain the same information (detailed 

cost estimates and cost or pricing data) 

when there are no other means to 

determine prices fair and reasonable, 

but that data cannot be certified. The 

contracting officer may also obtain only 

specified portions of this information, 

depending on the contracting officer’s 

needs. This clarification is especially 

important when purchasing 

noncompetitive commercial items. 

The Councils added a definition for 

‘‘certified cost or pricing data’’ to clarify 

the distinction that certified cost or 

pricing data is a two-step process 

consisting of (1) the offeror/contractor 

submitting cost or pricing data, and (2) 

the offeror/contractor providing a 

certificate of current cost or pricing data 

at a certain date prior to agreement on 

price. This term also distinguishes that, 

when exceptions apply, it is only the 

certificate that shall not be required, 

consistent with 10 U.S.C. 2306a(b) and 

41 U.S.C. 254b(b). This is further 

clarified in 10 U.S.C. 2306(d) and 41 

U.S.C. 254b, which require that 

contracting officers obtain data ‘‘...other 

than CERTIFIED cost or pricing data to 

the extent necessary to determine the 

reasonableness of the price...’’

(emphasis added). 

To bring the FAR into closer 

compliance with 10 U.S.C. 2306a(d)(1) 

and 41 U.S.C. 254b(d)(1), the Councils 

also added the following language in 

15.403–3(c): 

Unless an exception under 15.403–1(b)(1) 

or (2) applies, the contracting officer must 

require that the information submitted by the 

offeror include, at a minimum, appropriate 

information on the prices at which the same 

item or similar items have previously been 

sold, adequate for determining the 

reasonableness of the price. 

Other clarifying changes for obtaining 

certified cost or pricing data or data 

other than certified cost or pricing data 

are contained in the proposed FAR 

changes. These changes clarify that 

contracting officers must require the 

submission of whatever information is 

necessary to document a valid basis for 

determining prices to be fair and 

reasonable, using the hierarchy at FAR 

15.402, without requesting anymore 

information than is necessary to 

adequately document the determination. 

The Councils considered revising the 

terms to: ‘‘certified cost or pricing data’’

and ‘‘non-certified pricing and cost 

data.’’ However, the Councils 

determined that the terms need to be 

consistent with 10 U.S.C. 2306a and 41 

U.S.C. 254b. Most importantly though, if 

the FAR authorized the contracting 

officer only to obtain ‘‘noncertified cost 

or pricing data’’ when a certificate is not 

required, the FAR would not contain 

authority to obtain detailed cost 

estimates plus the noncertified cost or 

pricing data; it would only contain 

authority to obtain ‘‘cost or pricing’’ that 

is not certified. The distinction between 

detailed cost estimates and ‘‘cost or 

pricing data’’ is that ‘‘cost or pricing 

data’’ are defined in TINA, and they are 

limited to a subset of the information 

that Table 15–2 requires. The 10 U.S.C. 

2306a(h)(1) definition of cost or pricing 

data states ‘‘the term does not include 

information that is judgmental, but does 

include the factual information from 

which a judgment was derived.’’

Therefore, if a contracting officer needs 

a complete cost estimate and supporting 

judgments, the contracting officer needs 

more than just the noncertified cost or 

pricing data. 

The proposed changes are expected to 

resolve confusion and to provide 

contracting officers and contractors the 

necessary clarification that the 

contracting officer has the authority 

(and requirement) to request, obtain, 

and evaluate whatever pricing or cost 

information is needed to make a 

determination that prices are fair and 

reasonable - using the hierarchy at FAR 

15.402. 

This is not a significant regulatory 

action and, therefore, was not subject to 

review under Section 6(b) of Executive 

Order 12866, Regulatory Planning and 

Review, dated September 30, 1993. This 

rule is not a major rule under 5 U.S.C. 

804. 

B. Regulatory Flexibility Act 

The Councils do not expect this 

proposed rule to have a significant 

economic impact on a substantial 

number of small entities within the 

meaning of the Regulatory Flexibility 

Act, 5 U.S.C. 601, et seq., because this 

proposed rule is clarifying existing 

statutory and regulatory authorities. It is 

not establishing new authorities or 

procedures. An Initial Regulatory 

Flexibility Analysis has, therefore, not 

been performed. We invite comments 

from small businesses and other 

interested parties. The Councils will 

consider comments from small entities 

concerning the affected FAR Part 2, 4, 

12, 14, 15, 16, 19, 27, 30, 31, 32, 42, 44, 

49, and 52 in accordance with 5 U.S.C. 

610. Interested parties must submit such 

comments separately and should cite 5 

U.S.C. 601, et seq. (FAR case 2005–036), 

in correspondence. 

C. Paperwork Reduction Act 

The Paperwork Reduction Act does 

not apply because the proposed changes 

to the FAR do not impose additional 

information collection requirements to 

the paperwork burden previously 

approved under OMB Control Number 

9000–0013. 

List of Subjects in 48 CFR Parts 2, 4, 12, 

14, 15, 16, 19, 27, 30, 31, 32, 42, 44, 49, 

and 52 

Government procurement. 

Dated: April 12, 2007. 

Al Matera, 

Acting Director, Contract Policy Division. 

Therefore, DoD, GSA, and NASA 

propose amending 48 CFR parts 2, 4, 12, 

14, 15, 16, 19, 27, 30, 31, 32, 42, 44, 49, 

and 52 as set forth below: 

1. The authority citation for 48 CFR 

parts 2, 4, 12, 14, 15, 16, 19, 27, 30, 31, 

32, 42, 44, 49, and 52 continues to read 

as follows: 

Authority: 40 U.S.C. 121(c); 10 U.S.C. 

chapter 137; and 42 U.S.C. 2473(c). 


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PART 2—DEFINITIONS OF WORDS 

AND TERMS 

2. Amend section 2.101 in paragraph 

(b)(2) by—

a. Adding, in alphabetical order, the 

definition ‘‘Certified cost or pricing 

data’’; 

b. Revising the introductory text of 

the definition ‘‘Cost or pricing data’’; 

c. Adding, in alphabetical order, the 

definition ‘‘Data other than certified cost 

or pricing data’’; and 

d. Removing the definition 

‘‘Information other than cost or pricing 

data’’. 

The added and revised text reads as 

follows: 

2.101 Definitions. 

* * * * * 

(b) * * * 

(2) * * * 

Certified cost or pricing data means 

‘‘cost or pricing data’’ that has been 

required to be submitted and has been 

certified, or is required to be certified, 

in accordance with 15.406–2. This 

certification states that, to the best of the 

person’s knowledge and belief, the cost 

or pricing data is accurate, complete, 

and current as of a date certain before 

contract award. Cost or pricing data is 

required to be certified in certain 

procurements (10 U.S.C. 2306a and 41 

U.S.C. 254b). See FAR 15.403–4. 

* * * * * 

Cost or pricing data (10 U.S.C. 

2306a(h)(1) and 41 U.S.C. 254b) means 

all facts that, as of the date of price 

agreement, or, if applicable, an earlier 

date agreed upon between the parties 

that is as close as practicable to the date 

of agreement on price, prudent buyers 

and sellers would reasonably expect to 

affect price negotiations significantly. 

Cost or pricing data are factual, not 

judgmental; and are verifiable. While 

they do not indicate the accuracy of the 

prospective contractor’s judgment about 

estimated future costs or projections, 

they do include the data forming the 

basis for that judgment. Cost or pricing 

data are more than historical accounting 

data; they are all the facts that can be 

reasonably expected to contribute to the 

soundness of estimates of future costs 

and to the validity of determinations of 

costs already incurred. They also 

include, but are not limited to, such 

factors as—

* * * * * 

Data other than certified cost or 

pricing data means any data, including 

cost or pricing data and judgmental 

information necessary for the 

contracting officer to determine a fair 

and reasonable price or cost realism, 

where certification is not required in 

accordance with 15.406–2. For example, 

such data may include pricing, sales, or 

cost data, and includes cost or pricing 

data for which certification is 

determined inapplicable after 

submission. 

* * * * * 

PART 4—ADMINISTRATIVE MATTERS 

4.704 [Amended] 

3. Amend section 4.704 in paragraph 

(b) by removing ‘‘for cost’’ and adding 

‘‘for certified cost’’ in its place. 

4. Amend section 4.803 by revising 

paragraphs (a)(17) and (b)(4) to read as 

follows: 

4.803 Contents of contract files. 

* * * * * 

(a) * * * 

(17) Data and information related to 

the Contracting Officer’s determination 

of a fair and reasonable price. This may 

include—

(i) Cost or pricing data; 

(ii) Data other than certified cost or 

pricing data; 

(iii) Certified cost or pricing data; 

(iv) Justification for waiver from the 

requirement to submit certified cost or 

pricing data; or 

(v) Certificates of Current Cost or 

Pricing Data. 

* * * * * 

(b) * * * 

(4) Certified cost or pricing data, 

Certificates of Current Cost or Pricing 

Data, or data other than certified cost or 

pricing data; cost or price analysis; and 

other documentation supporting 

contractual actions executed by the 

contract administration office. 

* * * * * 

PART 12—ACQUISITON OF 

COMMERCIAL ITEMS 

12.102 [Amended] 

5. Amend section 12.102 in paragraph 

(f)(2)(ii) by removing ‘‘Cost or pricing’’

and adding ‘‘Certified cost or pricing’’ in 

its place. 

12.504 [Amended] 

6. Amend section 12.504 in paragraph 

(a)(7) by removing ‘‘provide cost’’ and 

adding ‘‘provide certified cost’’ in its 

place. 

PART 14—SEALED BIDDING 

7. Amend section 14.201–7 by 

removing from paragraph (a) ‘‘of cost’’

and adding ‘‘of certified cost’’ in its 

place; and by revising paragraphs (b)(1) 

and (c)(1) to read as follows: 

14.201–7 Contract clauses. 

* * * * * 

(b) * * * 

(1) When contracting by sealed 

bidding, the contracting officer shall 

insert the clause at 52.214–27, Price 

Reduction for Defective Certified Cost or 

Pricing Data—Modifications—Sealed 

Bidding, in solicitations and contracts if 

the contract amount is expected to 

exceed the threshold for submission of 

certified cost or pricing data at 15.403–

4(a)(1). 

* * * * * 

(c) * * * 

(1) When contracting by sealed 

bidding, the contracting officer shall 

insert the clause at 52.214–28, 

Subcontractor Certified Cost or Pricing 

Data—Modifications—Sealed Bidding, 

in solicitations and contracts if the 

contract amount is expected to exceed 

the threshold for submission of certified 

cost or pricing data at 15.403–4(a)(1). 

* * * * * 

PART 15—CONTRACTING BY 

NEGOTIATION 

8. Amend section 15.204–5 by 

revising paragraph (b)(5) to read as 

follows: 

15.204–5 Part IV—Representations and 

Instructions. 

* * * * * 

(b) * * * 

(5) Certified cost or pricing data (see 

Table 15–2 of 15.408) or data other than 

certified cost or pricing data. 

* * * * * 

9. Amend section 15.402 by revising 

the introductory text and paragraph (a) 

to read as follows: 

15.402 Pricing policy. 

Contracting officers shall—

(a) Purchase supplies and services 

from responsible sources at fair and 

reasonable prices. In establishing the 

reasonableness of the offered prices, the 

contracting officer shall not obtain more 

data or information than is necessary. 

The contracting officer shall generally 

use the following order of preference in 

determining the type of data required: 

(1) No additional data from the 

offeror, if the price is based on adequate 

price competition, except as provided 

by 15.403–3(b). 

(2) Data other than certified cost or 

pricing data: 

(i) Data related to prices (e.g., 

established catalog or market prices, 

sales, or previous contract prices), 

relying first on data available within the 

Government; second, on data obtained 

from sources other than the offeror; and, 

if necessary, on data obtained from the 

offeror. When obtaining data from the 

offeror is necessary, unless an exception 


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under 15.403–1(b)(1) or (2) applies, such 

data submitted by the offeror shall 

include, at a minimum, appropriate data 

on the prices at which the same or 

similar items have been sold previously, 

adequate for evaluating the 

reasonableness of the price. 

(ii) Cost data necessary for the 

contracting officer to determine a fair 

and reasonable price. 

(3) Certified cost or pricing data. 

When required by 15.403–4. 

* * * * * 

10. Amend section 15.403 by revising 

the section heading to read as follows: 

15.403 Obtaining certified cost or pricing 

data. 

* * * * * 

11. Amend section 15.403–1 by—

a. Revising the section heading, 

paragraph (a), the introductory text of 

paragraphs (b) and (c), and paragraph 

(c)(3)(i); 

b. Removing from paragraphs 

(c)(3)(ii)(A), (B), and (C) ‘‘of cost’’ and 

adding ‘‘of certified cost’’ in its place; 

c. Removing from paragraph (c)(3)(iii) 

‘‘for cost’’ and adding ‘‘for certified 

cost’’ in its place; and 

d. Revising the introductory text of 

paragraph (c)(4). 

The revised text reads as follows: 

15.403–1 Prohibition on obtaining certified 

cost or pricing data (10 U.S.C. 2306a and 41 

U.S.C. 254b). 

(a) Certified cost or pricing data shall 

not be obtained for acquisitions at or 

below the simplified acquisition 

threshold. 

(b) Exceptions to certified cost or 

pricing data requirements. The 

contracting officer shall not require 

certified cost or pricing data to support 

any action (contracts, subcontracts, or 

modifications) (but may require data 

other than certified cost or pricing data 

as defined in FAR 2.101 to support a 

determination of a fair and reasonable 

price or cost realism)—

* * * * * 

(c) Standards for exceptions from 

certified cost or pricing data 

requirements—

* * * * * 

(3) * * * 

(i) Any acquisition of an item that 

meets the commercial item definition in 

2.101, or any modification, as defined in 

paragraph (3)(i) of that definition, that 

does not change the item from a 

commercial item to a noncommercial 

item, is exempt from the requirement for 

certified cost or pricing data. If the 

contracting officer determines that an 

item claimed to be commercial is, in 

fact, not commercial and that no other 

exception or waiver applies, the 

contracting officer shall require 

submission of certified cost or pricing 

data. 

* * * * * 

(4) Waivers. The head of the 

contracting activity (HCA) may, without 

power of delegation, waive the 

requirement for submission of certified 

cost or pricing data in exceptional cases. 

The authorization for the waiver and the 

supporting rationale shall be in writing. 

The HCA may consider waiving the 

requirement if the price can be 

determined to be fair and reasonable 

without submission of certified cost or 

pricing data. For example, if certified 

cost or pricing data were furnished on 

previous production buys and the 

contracting officer determines such data 

are sufficient, when combined with 

updated data, a waiver may be granted. 

If the HCA has waived the requirement 

for submission of certified cost or 

pricing data, the contractor or highertier subcontractor to whom the waiver 

relates shall be considered as having 

been required to provide certified cost 

or pricing data. Consequently, award of 

any lower-tier subcontract expected to 

exceed the certified cost or pricing data 

threshold requires the submission of 

certified cost or pricing data unless—

* * * * * 

12. Revise section 15.403–2 to read as 

follows: 

15.403–2 Other circumstances where 

certified cost or pricing data are not 

required. 

(a) The exercise of an option at the 

price established at contract award or 

initial negotiation does not require 

submission of certified cost or pricing 

data. 

(b) Certified cost or pricing data are 

not required for proposals used solely 

for overrun funding or interim billing 

price adjustments. 

13. Revise section 15.403–3 to read as 

follows: 

15.403–3 Requiring data other than 

certified cost or pricing data. 

(a)(1) In those acquisition situations 

that do not require certified cost or 

pricing data, the contracting officer 

shall—

(i) Obtain whatever data is available 

from Government or other secondary 

sources and use that data in determining 

a fair and reasonable price. 

(ii) If the contracting officer cannot 

obtain adequate data from sources other 

than the offeror, the contracting officer 

shall require submission of data other 

than certified cost or pricing data, as 

defined in 2.101, from the offeror that is 

adequate to determine a fair and 

reasonable price (10 U.S.C. 2306a(d)(1) 

and 41 U.S.C. 254b(d)(1)). This includes 

data from an offeror to support a cost 

realism analysis. 

(iii) In situations where there is not 

adequate price competition, the 

contracting officer shall consider 

whether cost data are necessary to 

determine a fair and reasonable price. 

(iv) Unless an exception under 

15.403–1(b)(1) or (2) applies, the 

contracting officer shall require that the 

data submitted by the offeror include, at 

a minimum, appropriate data on the 

prices at which the same item or similar 

items have previously been sold, 

adequate for determining the 

reasonableness of the price. 

(v) To determine the data an offeror 

shall be required to submit, the 

contracting officer shall consider the 

guidance in Section 3.3, Chapter 3, 

Volume I, of the Contract Pricing 

Reference Guide cited at 15.404–1(a)(7). 

(2) The contractor’s format for 

submitting the data should be used (see 

15.403–5(b)(2)). 

(3) The contracting officer shall 

ensure that data used to support price 

negotiations is sufficiently current to 

permit negotiation of a fair and 

reasonable price. Requests for updated 

offeror data should be limited to data 

that affects the adequacy of the proposal 

for negotiations, such as changes in 

price lists. 

(4) As specified in Section 808 of 

Public Law 105–261, an offeror who 

does not comply with a requirement to 

submit data for a contract or subcontract 

in accordance with paragraph (a)(1) of 

this section is ineligible for award 

unless the HCA determines that it is in 

the best interest of the Government to 

make the award to that offeror, based on 

consideration of the following: 

(i) The effort made to obtain the data. 

(ii) The need for the item or service. 

(iii) Increased cost or significant harm 

to the Government if award is not made. 

(b) Adequate price competition. When 

adequate price competition exists (see 

15.403–1(c)(1)), generally no additional 

data is necessary to determine the 

reasonableness of price. However, if 

there are unusual circumstances where 

it is concluded that additional data is 

necessary to determine the 

reasonableness of price, the contracting 

officer shall, to the maximum extent 

practicable, obtain the additional data 

from sources other than the offeror. In 

addition, the contracting officer should, 

request data to determine the cost 

realism of competing offers or to 

evaluate competing approaches. 

(c) Commercial items. (1) At a 

minimum, the contracting officer must 

use price analysis to determine whether 

the price is fair and reasonable 


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whenever the contracting officer 

acquires a commercial item (see 15.404–

1(b)). The fact that a price is included 

in a catalog does not, in and of itself, 

make it fair and reasonable. If the 

contracting officer cannot determine 

whether an offered price is fair and 

reasonable, even after obtaining 

additional data from sources other than 

the offeror, then the contracting officer 

shall require the offeror to submit data 

other than certified cost or pricing data 

to support further analysis (see 15.404–

1). This data may include sales history, 

cost data, or any other information the 

contracting officer requires to determine 

the price is fair and reasonable. Unless 

an exception under 15.403–1(b)(1) or (2) 

applies, the contracting officer shall 

require that the data submitted by the 

offeror include, at a minimum, 

appropriate data on the prices at which 

the same item or similar items have 

previously been sold, adequate for 

determining the reasonableness of the 

price. 

(2) Limitations relating to commercial 

items (10 U.S.C. 2306a(d)(2) and 41 

U.S.C. 254b(d)). 

(i) The contracting officer shall limit 

requests for sales data relating to 

commercial items to data for the same 

or similar items during a relevant time 

period. 

(ii) The contracting officer shall, to 

the maximum extent practicable, limit 

the scope of the request for data relating 

to commercial items to include only 

data that is in the form regularly 

maintained by the offeror as part of its 

commercial operations. 

(iii) The Government shall not 

disclose outside the Government data 

obtained relating to commercial items 

that is exempt from disclosure under 

24.202(a) or the Freedom of Information 

Act (5 U.S.C. 552(b)). 

14. Amend section 15.403–4 by 

revising the section heading, the 

introductory text of paragraphs (a)(1), 

(a)(1)(iii), and (b) and paragraphs 

(a)(1)(ii), (a)(2), (b)(1), and (c) to read as 

follows: 

15.403–4 Requiring certified cost or 

pricing data (10 U.S.C. 2306a and 41 U.S.C. 

254b). 

(a)(1) The contracting officer shall 

obtain certified cost or pricing data only 

if the contracting officer concludes that 

none of the exceptions in 15.403–1(b) 

applies. However, if the contracting 

officer has reason to believe exceptional 

circumstances exist and has sufficient 

data available to determine a fair and 

reasonable price, then the contracting 

officer should consider requesting a 

waiver under the exception at 15.403–

1(b)(4). The threshold for obtaining 

certified cost or pricing data is 

$650,000. Unless an exception applies, 

certified cost or pricing data are 

required before accomplishing any of 

the following actions expected to exceed 

the current threshold or, for existing 

contracts, the threshold specified in the 

contract: 

* * * * * 

(ii) The award of a subcontract at any 

tier, if the contractor and each highertier subcontractor were required to 

submit certified cost or pricing data (but 

see waivers at 15.403–1(c)(4)). 

(iii) The modification of any sealed 

bid or negotiated contract (whether or 

not certified cost or pricing data were 

initially required) or any subcontract 

covered by paragraph (a)(1)(ii) of this 

subsection. Price adjustment amounts 

must consider both increases and 

decreases (e.g., a $200,000 modification 

resulting from a reduction of $500,000 

and an increase of $300,000 is a pricing 

adjustment exceeding $650,000). 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—

* * * * * 

(2) Unless prohibited because an 

exception at 15.403–1(b) applies, the 

head of the contracting activity, without 

power of delegation, may authorize the 

contracting officer to obtain certified 

cost or pricing data for pricing actions 

below the pertinent threshold in 

paragraph (a)(1) of this section, 

provided the action exceeds the 

simplified acquisition threshold. 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. 

(b) When certified cost or pricing data 

are required, the contracting officer 

shall require the contractor or 

prospective contractor to submit to the 

contracting officer (and to have any 

subcontractor or prospective 

subcontractor submit to the prime 

contractor or appropriate subcontractor 

tier) the following in support of any 

proposal: 

(1) The certified cost or pricing data 

and data other than certified cost or 

pricing data. 

* * * * * 

(c) If certified cost or pricing data are 

requested and submitted by an offeror, 

but an exception is later found to apply, 

the data must not be considered 

certified cost or pricing data as defined 

in 2.101 and must not be certified in 

accordance with 15.406–2. 

* * * * * 

15. Amend section 15.403–5 by 

revising the section heading, paragraphs 

(a)(1), (a)(2), (a)(3), (b)(1), and (b)(2) to 

read as follows: 

15.403–5 Instructions for submission of 

certified cost or pricing data and data other 

than certified cost or pricing data. 

(a) * * * 

(1) Whether certified cost or pricing 

data are required; 

(2) That, in lieu of submitting certified 

cost or pricing data, the offeror may 

submit a request for exception from the 

requirement to submit certified cost or 

pricing data; 

(3) Any data other than certified cost 

or pricing data that is required; and 

* * * * * 

(b) * * * 

(1) Unless required to be submitted on 

one of the termination forms specified 

in Subpart 49.6, the contracting officer 

may require submission of certified cost 

or pricing data in the format indicated 

in Table 15–2 of 15.408, specify an 

alternative format, or permit submission 

in the contractor’s format. 

(2) Data other than certified cost or 

pricing data may be submitted in the 

offeror’s own format unless the 

contracting officer decides that use of a 

specific format is essential for 

evaluating and determining the price is 

fair and reasonable and the format has 

been described in the solicitation. 

* * * * * 

16. Amend section 15.404–1 by: 

a. Removing from paragraphs (a)(2) 

and (a)(3) ‘‘when cost’’ and adding 

‘‘when certified cost’’ in its place; 

b. Revising paragraph (a)(4) and the 

second sentence of paragraph (a)(6); 

c. Revising the heading of paragraph 

(b); 

d. Adding three sentences to the end 

of paragraph (b)(1); 

e. Revising the second sentence of 

paragraph (b)(2)(i), and paragraphs 

(b)(2)(ii) and (b)(2)(vii); 

f. Revising paragraph (c)(1); 

g. Removing from paragraph (e)(1) 

‘‘may’’ and adding ‘‘should’’ in its place; 

h. Adding paragraph (e)(3); and 

i. Removing from the third sentence of 

paragraph (f)(2) ‘‘may’’ and adding 

‘‘should’’ in its place. 


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20098 Federal Register / Vol. 72, No. 77 / Monday, April 23, 2007 / Proposed Rules 

The revised and added text reads as 

follows: 

15.404–1 Proposal analysis techniques. 

(a) * * * 

(4) Cost analysis may also be used to 

evaluate data other than certified cost or 

pricing data to determine cost 

reasonableness or cost realism when a 

fair and reasonable price cannot be 

determined through price analysis alone 

for commercial or non-commercial 

items. 

* * * * * 

(6) * * * Any discrepancy or mistake 

of fact (such as duplications, omissions, 

and errors in computation) contained in 

the certified cost or pricing data or data 

other than certified cost or pricing data 

submitted in support of a proposal shall 

be brought to the contracting officer’s 

attention for appropriate action. 

* * * * * 

(b) Price analysis for commercial and 

non-commercial items. (1) * * * Unless 

an exception under 15.403–1(b)(1) or (2) 

applies, at a minimum, the contracting 

officer shall obtain appropriate data on 

the prices at which the same item or 

similar items have previously been sold 

and determine if the data is adequate for 

evaluating the reasonableness of the 

price. Price analysis may include 

evaluating data other than certified cost 

or pricing data obtained from the offeror 

or contractor when there is no other 

means for determining a fair and 

reasonable price - see paragraph (c) of 

this section. Contracting officers shall 

obtain price or cost data from the offeror 

or contractor if that is the only means 

to determine the price to be fair and 

reasonable—including commercial item 

price analysis. 

(2) * * * 

(i) * * * Normally, adequate price 

competition establishes a fair and 

reasonable price (see 15.403–1(c)(1)). 

(ii) Comparison of proposed prices to 

prior Government buys and sales prices 

to other than the Government of the 

same or similar items, including 

commercial items that are ‘‘of a type’’ or 

requiring minor modifications, or other 

available data; 

(A) The prior price must be a valid 

basis for comparison. If there has been 

a significant time lapse between the last 

acquisition and the present one or if the 

terms and conditions of the acquisition 

are significantly different, or if the 

reasonableness of the prior price is 

uncertain, then the prior price may not 

be a valid basis for comparison. 

(B) The prior price must be adjusted 

to account for differing terms and 

conditions, quantities and market and 

economic factors. For similar items, the 

contracting officer must also adjust the 

prior price to account for the differences 

between the similar item and the item 

being procured. 

(C) Expert technical advice should be 

obtained when analyzing similar items 

or commercial items that are ‘‘of a type’’

or requiring minor modifications to 

ascertain the magnitude of changes 

required and to assist in pricing the 

required changes. 

* * * * * 

(vii) Analysis of data other than 

certified cost or pricing data (as defined 

at 2.101) provided by the offeror. 

* * * * * 

(c) * * * 

(1) Cost analysis is the review and 

evaluation of the separate cost elements 

and profit or fee in an offeror’s or 

contractor’s proposal (including 

certified cost or pricing data and data 

other than certified cost or pricing data, 

which are defined at 2.101, needed to 

determine a fair and reasonable price or 

cost realism), and the application of 

judgment to determine how well the 

proposed costs represent what the cost 

of the contract should be, assuming 

reasonable economy and efficiency. 

* * * * * 

(e) * * * 

(3) The contracting officer should 

request technical assistance in 

evaluating pricing related to items that 

are ‘‘similar to’’ items being purchased 

or commercial items that are ‘‘of a type’’

or requiring minor modifications to 

ascertain the magnitude of changes 

required and to assist in pricing the 

required changes. 

* * * * * 

17. Amend section 15.404–2 by—

a. Revising the section heading; 

b. Removing from the second sentence 

of paragraph (a)(1) and the first sentence 

of the introductory text of paragraph 

(a)(2) ‘‘must’’ and adding ‘‘shall’’ in its 

place; and 

c. Revising the introductory text of 

paragraph (a)(2)(iii) and paragraph 

(a)(2)(iii)(F). 

The revised text reads as follows: 

15.404–2 Data to support proposal 

analysis. 

(a) * * * 

(2) * * * 

(iii) Information to help contracting 

officers determine commerciality and a 

fair and reasonable price, including—

* * * * * 

(F) Identifying general market 

conditions affecting determinations of 

commerciality and a fair and reasonable 

price. 

* * * * * 

18. Amend section 15.404–3 by—

a. Revising paragraphs (a) and (b)(3); 

b. Revising the introductory text of 

paragraph (c); 

c. Removing from the introductory 

text of paragraph (c)(1) 

‘‘subcontractor(s), cost’’ and adding 

‘‘subcontractor(s), certified cost’’ in its 

place; 

d. Removing from paragraph (c)(1)(ii) 

‘‘pertinent cost’’ and adding ‘‘pertinent 

certified cost’’ in its place; 

e. Revising paragraph (c)(2); 

f. Removing from paragraph (c)(3) and 

the first sentence of paragraph (c)(4) 

‘‘Subcontractor cost’’ and adding 

‘‘Subcontractor certified cost’’ in its 

place; 

g. Removing from paragraph (c)(5) 

‘‘Government cost’’ and adding 

‘‘Government certified cost’’ in its place. 

The revised text reads as follows: 

15.404–3 Subcontract pricing 

considerations. 

(a) The contracting officer is 

responsible for the determination of a 

fair and reasonable price 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 

certified cost or pricing data. 

(b) * * * 

(3) When required by paragraph (c) of 

this section, submit subcontractor 

certified cost or pricing data to the 

Government as part of its own certified 

cost or pricing data. 

(c) Any contractor or subcontractor 

that is required to submit certified cost 

or pricing data also shall obtain and 

analyze certified cost or pricing data 

before awarding any subcontract, 

purchase order, or modification 

expected to exceed the certified cost or 

pricing data threshold, unless an 

exception in 15.403–1(b) applies to that 

action. 

* * * * * 

(2) The contracting officer should 

require the contractor or subcontractor 

to submit to the Government (or cause 

submission of) subcontractor certified 

cost or pricing data below the 

thresholds in paragraph (c)(1) of this 

section and data other than certified 

cost or pricing data that the contracting 

officer considers necessary for 

adequately pricing the prime contract. 

* * * * * 


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19. Amend section 15.406–2 by—

a. Revising the introductory text of 

paragraph (a); 

b. Removing from the second sentence 

of the certificate in paragraph (a) ‘‘the 

cost’’ and adding ‘‘the certified cost’’ in 

its place; 

c. Revising paragraph (e). 

The revised text reads as follows: 

15.406–2 Certificate of Current Cost or 

Pricing Data. 

(a) When certified cost or pricing data 

are required, the contracting officer 

shall require the contractor to execute a 

Certificate of Current Cost or Pricing 

Data, using the format in this paragraph, 

and must include the executed 

certificate in the contract file. 

* * * * * 

(e) If certified cost or pricing data are 

requested by the Government and 

submitted by an offeror, but an 

exception is later found to apply, the 

data shall not be considered certified 

cost or pricing data and shall not be 

certified in accordance with this 

subsection. 

20. Amend section 15.406–3 by 

revising paragraphs (a)(5) and (a)(6), and 

the second and third sentences of 

paragraph (a)(7) to read as follows: 

15.406–3 Documenting the negotiation. 

(a) * * * 

(5) If certified cost or pricing data 

were not required in the case of any 

price negotiation exceeding the certified 

cost or pricing data threshold, the 

exception used and the basis for it. 

(6) If certified cost or pricing data 

were required, the extent to which the 

contracting officer—

(i) Relied on the certified cost or 

pricing data submitted and used them in 

negotiating the price; 

(ii) Recognized as inaccurate, 

incomplete, or noncurrent any certified 

cost or pricing data submitted; the 

action taken by the contracting officer 

and the contractor as a result; and the 

effect of the defective data on the price 

negotiated; or 

(iii) Determined that an exception 

applied after the data were submitted 

and, therefore, considered not to be 

certified cost or pricing data. 

(7) * * * Where the determination of 

a fair and reasonable price is based on 

cost analysis, the summary shall address 

each major cost element. When 

determination of a fair and reasonable 

price is based on price analysis, the 

summary shall include the source and 

type of data used to support the 

determination. 

* * * * * 

21. Amend section 15.407–1 by—

a. Revising the section heading; 

b. Removing from the first sentence of 

paragraph (a) ‘‘any cost’’ and adding 

‘‘any certified cost’’ in its place; 

c. Revising paragraph (b)(1); 

d. Removing from paragraphs (b)(2) 

and (b)(3)(ii) ‘‘the cost’’ and adding ‘‘the 

certified cost’’ in its place; 

e. Revising paragraph (b)(3)(iv); 

f. Removing from paragraph (b)(4) 

‘‘understated cost’’ and adding 

‘‘understated certified cost’’ in its place; 

g. Removing from the first sentence of 

paragraph (b)(5)(ii) ‘‘the cost’’ and 

adding ‘‘the certified cost’’ in its place; 

h. Removing from the first sentence of 

paragraph (b)(7)(iii) ‘‘defective cost’’ and 

adding ‘‘defective certified cost’’ in its 

place; 

i. Removing from the first sentence of 

paragraph (e) ‘‘Defective Cost’’ each 

time it appears (twice) and adding 

‘‘Defective Certified Cost’’ in its place; 

j. Removing from the first sentence of 

the introductory text of paragraph (f) 

‘‘subcontractor cost’’ and adding 

‘‘subcontractor certified cost’’ in its 

place; 

k. Removing from the first sentence of 

paragraph (f)(2) ‘‘subcontractor cost’’

and adding ‘‘subcontractor certified 

cost’’ in its place. 

The revised text reads as follows: 

15.407–1 Defective certified cost or pricing 

data. 

* * * * * 

(b) * * * 

(1) If, after award, certified cost or 

pricing data are found to be inaccurate, 

incomplete, or noncurrent as of the date 

of final agreement on price or an earlier 

date agreed upon by the parties given on 

the contractor’s or subcontractor’s 

Certificate of Current Cost or Pricing 

Data, the Government is entitled to a 

price adjustment, including profit or fee, 

of any significant amount by which the 

price was increased because of the 

defective data. This entitlement is 

ensured by including in the contract one 

of the clauses prescribed in 15.408 (b) 

and (c) and is set forth in the clauses at 

52.215–10, Price Reduction for 

Defective Certified Cost or Pricing Data, 

and 52.215–11, Price Reduction for 

Defective Certified Cost or Pricing 

Data—Modifications. The clauses give 

the Government the right to a price 

adjustment for defects in certified cost 

or pricing data submitted by the 

contractor, a prospective subcontractor, 

or an actual subcontractor. 

* * * * * 

(3) * * * 

(iv) Certified cost or pricing data were 

required; however, the contractor or 

subcontractor did not submit a 

Certificate of Current Cost or Pricing 

Data relating to the contract. 

* * * * * 

15.407–2 [Amended] 

22. Amend section 15.407–2 in 

paragraph (c)(1) by removing ‘‘requiring 

cost’’ and adding ‘‘requiring certified 

cost’’ in its place. 

23. Amend section 15.407–3 by 

revising the first sentence of paragraph 

(a) to read as follows: 

15.407–3 Forward pricing rate agreements. 

(a) When certified cost or pricing data 

are required, offerors are required to 

describe any forward pricing rate 

agreements (FPRA’s) in each specific 

pricing proposal to which the rates 

apply and to identify the latest certified 

cost or pricing data already submitted in 

accordance with the agreement. * * * 

* * * * * 

24. Amend section 15.408 by—

a. Revising paragraphs (b), (c), (d), and 

(e); 

b. Removing from paragraphs (g), (j), 

and (k) ‘‘that cost’’ and adding ‘‘that 

certified cost’’ in its place; 

c. Revising the introductory text of 

paragraph (l), (l)(1), (l)(4), and (m); and 

d. In Table 15–2, which follows 

paragraph (m)(3), by—

1. Revising the table title, the 

introductory text, and Notes 1 and 2; 

2. Revising the first sentence of 

paragraph B. and the introductory text 

of paragraph C. of the General 

Instructions; and 

3. Revising the introductory text of 

paragraph A. and paragraph A.(2) of the 

Cost Elements. 

The revised text reads as follows: 

15.408 Solicitation provisions and 

contract clauses. 

* * * * * 

(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 


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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 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. 

(e) Subcontractor Certified Cost or 

Pricing Data—Modifications. The 

contracting officer shall 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. 

* * * * * 

(l) Requirements for Certified Cost or 

Pricing Data and Data Other Than 

Certified Cost or Pricing Data. 

Considering the hierarchy at 15.402, the 

contracting officer shall insert the 

provision at 52.215–20, Requirements 

for Certified Cost or Pricing Data or Data 

Other Than Certified Cost and 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. 

The contracting officer shall—

(1) Use the provision with its 

Alternate I to specify a format for 

certified cost or pricing data or data 

other than certified cost or pricing data 

other than the format required by Table 

15–2 of this section; 

* * * * * 

(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 is 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 15.402, the contracting 

officer shall insert the clause at 52.215–

21, Requirements for Certified Cost or 

Pricing Data or 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. The contracting officer 

shall—

(1) Use the clause with its Alternate 

II if copies of the proposal are to be sent 

to the ACO and contract auditor; 

(2) Use the clause with its Alternate 

III if submission via electronic media is 

required; and 

(3) 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 is required as described in 15.403–

3. 

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 comes into your 

possession, it should be submitted promptly 

to the Contracting Officer in a manner that 

clearly shows how the data relates 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 is 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 

* * * * * 

B. In submitting your proposal, you must 

include an index, appropriately referenced, 

of all the certified cost or pricing data and 

data other than certified cost or pricing data 

accompanying or identified in the proposal. 

* * * 

C. As part of the specific information 

required, you must submit, with your 

proposal, certified cost or pricing data (as 

defined at FAR 2.101). You must clearly 

identify on your cover sheet that certified 

cost or pricing data are included as part of 

the proposal. In addition, you must submit 

with your proposal any data other than 

certified cost or pricing data reasonably 

required to explain your estimating process, 

including—

* * * * * 

II. Cost Elements 

* * * * * 

A. Materials and services. Provide a 

consolidated priced summary of individual 

material quantities included in the various 

tasks, orders, or contract line items being 

proposed and the basis for pricing (vendor 

quotes, invoice prices, etc.). Include raw 

materials, parts, components, assemblies, and 

services to be produced or performed by 

others. For all items proposed, identify the 

item and show the source, quantity, and 

price. Conduct price analyses of all 

subcontractor proposals. Conduct cost 

analyses for all subcontracts when certified 

cost or pricing data are submitted by the 

subcontractor. Include these analyses as part 

of your own certified cost or pricing data 

submissions for subcontracts expected to 

exceed the appropriate threshold in FAR 

15.403–4. Submit the subcontractor certified 

cost or pricing data as part of your own 

certified cost or pricing data as required in 

paragraph IIA(2) of this table. These 

requirements also apply to all subcontractors 

if required to submit certified cost or pricing 

data. 

* * * * * 

(2) All Other. Obtain certified cost or 

pricing data and data other than certified cost 

or pricing data from prospective sources for 

those acquisitions (such as subcontracts, 

purchase orders, material order, etc.) 

exceeding the threshold set forth in FAR 

15.403–4 and not otherwise exempt, in 

accordance with FAR 15.403–1(b) (i.e., 

adequate price competition, commercial 

items, prices set by law or regulation or 

waiver). Also provide data showing the basis 

for establishing source and reasonableness of 

price. In addition, provide a summary of your 

cost analysis and a copy of certified cost or 

pricing data and data other than certified cost 

or pricing data submitted by the prospective 

source in support of each subcontract, or 

purchase order that is the lower of either 

$11,500,000 or more, or both more than the 

pertinent certified cost or pricing data 

threshold and more than 10 percent of the 

prime contractor’s proposed price. The 

Contracting Officer may require you to 

submit certified cost or pricing data and data 

other than certified cost or pricing data in 

support of proposals in lower amounts. 

Subcontractor certified cost or pricing data 

must be accurate, complete and current as of 

the date of final price agreement, or an earlier 

date agreed upon by the parties, given on the 

prime contractor’s Certificate of Current Cost 

or Pricing Data. The prime contractor is 

responsible for updating a prospective 

subcontractor’s data. For standard 

commercial items fabricated by the offeror 

that are generally stocked in inventory, 

provide a separate cost breakdown, if priced 

based on cost. For interorganizational 

transfers priced at cost, provide a separate 

breakdown of cost elements. Analyze the 

certified cost or pricing data and data other 

than certified cost or pricing data and submit 

the results of your analysis of the prospective 

source’s proposal. When submission of a 

prospective source’s certified cost or pricing 

data is required as described in this 

paragraph, it must be included as part of your 

own certified cost or pricing data. You must 

also submit any data other than certified cost 

or pricing data obtained from a 


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subcontractor, either actually or by specific 

identification, along with the results of any 

analysis performed on that data. 

* * * * * 

PART 16—TYPES OF CONTRACTS 

16.202–2 [Amended] 

25. Amend section 16.202–2 by 

removing from paragraph (b) ‘‘valid 

cost’’ and adding ‘‘valid certified cost’’

in its place. 

26. Amend section 16.203–2 by 

revising paragraph (b) to read as follows: 

16.203–2 Application. 

* * * * * 

(b) In contracts that do not require 

submission of certified cost or pricing 

data, the contracting officer shall obtain 

adequate data to establish the base level 

from which adjustment will be made 

and may require verification of data 

submitted. 

27. Amend section 16.603–2 by 

revising the first sentence of paragraph 

(c) to read as follows: 

16.603–2 Application. 

* * * * * 

(c) Each letter contract shall, as 

required by the clause at 52.216–25, 

Contract Definitization, contain a 

negotiated definitization schedule 

including (1) dates for submission of the 

contractor’s price proposal, required 

certified cost or pricing data and data 

other than certified cost or pricing data, 

and, if required, make-or-buy and 

subcontracting plans, (2) a date for the 

start of negotiations, and (3) a target date 

for definitization, which shall be the 

earliest practicable date for 

definitization. * * * 

* * * * * 

28. Amend section 16.603–4 by 

revising the second sentence of 

paragraph (b)(3) to read as follows: 

16.603–4 Contract clauses. 

(b) * * * 

(3) * * * If at the time of entering into 

the letter contract, the contracting 

officer knows that the definitive 

contract will be based on adequate price 

competition or will otherwise meet the 

criteria of 15.403–1 for not requiring 

submission of certified cost or pricing 

data, the words ‘‘and certified cost or 

pricing data’’ may be deleted from 

paragraph (a) of the clause. * * * 

* * * * * 

PART 19—SMALL BUSINESS 

PROGRAMS 

29. Amend paragraph 19.705–4 by—

a. Removing from the introductory 

paragraph and paragraph (a) ‘‘must’’ and 

adding ‘‘shall’’ in its place; and 

b. Revising paragraph (d)(3) to read as 

follows: 

19.705–4 Reviewing the subcontracting 

plan. 

* * * * * 

(d) * * * 

(3) Ensure that the subcontracting 

goals are consistent with the offeror’s 

certified cost or pricing data or data 

other than certified cost or pricing data. 

* * * * * 

30. Amend section 19.806 by revising 

the second and third sentences of 

paragraph (a) to read as follows: 

19.806 Pricing the 8(a) contract. 

(a) * * * If required by Subpart 15.4, 

the SBA shall obtain certified cost or 

pricing data and data other than 

certified cost or pricing data from the 

8(a) contractor. If the SBA requests audit 

assistance to determine proposed price 

to be fair and reasonable in a sole source 

acquisition, the contracting activity 

shall furnish it to the extent it is 

available. 

* * * * * 

PART 27—PATENTS, DATA, AND 

COPYRIGHTS 

27.204–1 [Amended] 

31. Amend section 27.204–1 in the 

first sentence of paragraph (b) by 

removing ‘‘which cost’’ and adding 

‘‘which certified cost’’ in its place. 

27.204–2 [Amended] 

32. Amend section 27.204–2 in the 

first sentence by removing ‘‘which cost’’

and adding ‘‘which certified cost’’ in its 

place. 

PART 30—COST ACCOUNTING 

STANDARDS ADMINISTRATION 

30.201–5 [Amended] 

33. Amend section 30.201–5 in 

paragraph (c)(6) by removing ‘‘Whether 

cost’’ and adding ‘‘Whether certified 

cost’’ in its place. 

PART 31—CONTRACT COST 

PRINCIPLES AND PROCEDURES 

31.205–6 [Amended] 

34. Amend section 31.205–6 in 

paragraph (j)(3)(i)(B), the second 

sentence of paragraph (j)(3)(ii), and the 

second sentence of paragraph (o)(5) by 

removing ‘‘which cost’’ and adding 

‘‘which certified cost’’ in its place. 

PART 32—CONTRACT FINANCING 

32.613 [Amended] 

35. Amend section 32.613 in 

paragraph (h)(3) by removing ‘‘Defective 

Cost’’ and adding ‘‘Defective Certified 

Cost’’ in its place. 

PART 42—CONTRACT 

ADMINISTRATION AND AUDIT 

SERVICES 

42.705–1 [Amended] 

36. Amend section 42.705–1 in 

paragraph (b)(5)(iii)(D) by removing ‘‘of 

cost’’ and adding ‘‘of certified cost’’ in 

its place. 

37. Amend section 42.1304 by 

revising paragraph (d) to read as 

follows: 

42.1304 Government delay of work. 

* * * * * 

(d) The contracting officer shall retain 

in the file a record of all negotiations 

leading to any adjustment made under 

the clause, and related certified cost or 

pricing data, or data other than certified 

cost or pricing data. 

38. Amend section 42.1701 by—

a. Removing from the first sentence of 

paragraph (b) ‘‘include cost’’ and adding 

‘‘include certified cost’’ in its place, and 

adding a new second sentence; and 

b. Revising the second sentence of 

paragraph (c). 

The added and revised text reads as 

follows: 

42.1701 Procedures. 

* * * * * 

(b) * * * The ACO shall also obtain 

any necessary data other than certified 

cost or pricing data. * * * 

(c) * * * The agreement shall provide 

for cancellation at the option of either 

party and shall require the contractor to 

submit to the ACO and to the cognizant 

contract auditor any significant change 

in certified cost or pricing data and data 

other than certified cost or pricing data. 

* * * * * 

PART 44—SUBCONTRACTING 

POLICIES AND PROCEDURES 

44.202–2 [Amended] 

39. Amend section 44.202–2 in 

paragraph (a)(8) by removing ‘‘current 

cost’’ and adding ‘‘current certified 

cost’’ in its place. 

44.303 [Amended] 

40. Amend section 44.303 in 

paragraph (b) by removing ‘‘current 

cost’’ and adding ‘‘current certified 

cost’’ in its place. 

44.305–3 [Amended] 

41. Amend section 44.305–3 in 

paragraph (a)(1) by removing ‘‘Cost’’ and 

adding ‘‘Certified cost’’ in its place. 

PART 49—TERMINATION OF 

CONTRACTS 

49.105 [Amended] 

42. Amend section 49.105 in 

paragraph (c)(15) by removing ‘‘current 


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cost’’ and adding ‘‘current certified 

cost’’ in its place. 

49.603–1 [Amended] 

43. Amend section 49.603–1 in 

paragraph (b)(7)(x) of the agreement by 

removing ‘‘defective cost’’ and adding 

‘‘defective certified cost’’ in its place. 

49.603–2 [Amended] 

44. Amend section 49.603–2 in 

paragraph (b)(8)(vii) of the agreement by 

removing ‘‘defective cost’’ and adding 

‘‘defective certified cost’’ in its place. 

49.603–3 [Amended] 

45. Amend section 49.603–3 in 

paragraph (b)(7)(xv) of the agreement by 

removing ‘‘defective cost’’ and adding 

‘‘defective certified cost’’ in its place. 

49.603–4 [Amended] 

46. Amend section 49.603–4 in 

paragraph (b)(4)(viii) of the agreement 

by removing ‘‘defective cost’’ and 

adding ‘‘defective certified cost’’ in its 

place. 

PART 52—SOLICITATION PROVISIONS 

AND CONTRACT CLAUSES 

47. Amend section 52.214–26 by—

a. Revising the date of the clause; 

b. Revising the introductory text of 

paragraph (b); and 

c. Removing from paragraph (e) ‘‘of 

cost’’ and adding ‘‘of certified cost’’ in 

its place. 

The revised text reads as follows: 

52.214–26 Audit and Records—Sealed 

Bidding. 

* * * * * 

AUDIT AND RECORDS—SEALED BIDDING 

(DATE) 

* * * * * 

(b) Certified cost or pricing data. If the 

Contractor has been required to submit 

certified cost or pricing data or data other 

than certified cost or pricing data in 

connection with the pricing of any 

modification to this contract, the Contracting 

Officer, or an authorized representative of the 

Contracting Officer, in order to evaluate the 

accuracy, completeness, and currency of the 

certified cost or pricing data, shall have the 

right to examine and audit all of the 

Contractor’s records, including computations 

and projections, related to—

* * * * * 

48. Amend section 52.214–27 by—

a. Revising the section heading; 

b. Revising the clause heading and 

date of the clause; 

c. Removing from paragraph (a) ‘‘of 

cost’’ and adding ‘‘of certified cost’’ in 

its place; 

d. Removing from paragraph (b)(1) 

‘‘furnished cost’’ and adding ‘‘furnished 

certified cost’’ in its place; and 

removing from paragraph (b)(2) 

‘‘Contractor cost’’ and adding 

‘‘Contractor certified cost’’ in its place; 

e. Removing from paragraph (c)(2) 

‘‘defective cost’’ and adding ‘‘defective 

certified cost’’ in its place; 

f. Removing from paragraph (d)(1)(i) 

‘‘current cost’’ and adding ‘‘current 

certified cost’’ in its place; and 

removing from paragraph (d)(1)(ii) ‘‘the 

cost’’ and adding ‘‘the certified cost’’ in 

its place; 

g. Removing from paragraph 

(d)(2)(i)(B) ‘‘the cost’’ and adding ‘‘the 

certified cost’’ in its place; and 

h. Removing from paragraph (e)(2) 

‘‘submitted cost’’ and adding 

‘‘submitted certified cost’’ in its place; 

The revised text reads as follows: 

52.214–27 Price Reduction for Defective 

Certified Cost or Pricing Data—

Modifications—Sealed Bidding. 

* * * * * 

PRICE REDUCTION FOR DEFECTIVE 

CERTIFIED COST OR PRICING DATA—

MODIFICATIONS—SEALED BIDDING 

(DATE) 

* * * * * 

49. Amend section 52.214–28 by—

a. Revising the section heading; 

b. Revising the clause heading and 

date of the clause; 

c. Removing from paragraph (a)(1) ‘‘of 

cost’’ and adding ‘‘of certified cost’’ in 

its place; 

d. Revising paragraph (b); and 

e. Removing from paragraph (d) ‘‘of 

cost’’ and adding ‘‘of certified cost’’ in 

its place. 

The revised text reads as follows: 

52.214–28 Subcontractor Certified Cost or 

Pricing Data—Modifications—Sealed 

Bidding. 

* * * * * 

SUBCONTRACTOR CERTIFIED COST OR 

PRICING DATA—MODIFICATIONS—

SEALED BIDDING (DATE) 

* * * * * 

(b) Before awarding any subcontract 

expected to exceed the threshold for 

submission of certified cost or pricing data at 

FAR 15.804–2(a)(1), on the date of agreement 

on price or the date of award, whichever is 

later; or before pricing any subcontract 

modifications involving aggregate increases 

and/or decreases in costs, plus applicable 

profits, expected to exceed the threshold for 

submission of certified cost or pricing data at 

FAR 15.804–2(a)(1), the Contractor shall 

require the subcontractor to submit certified 

cost or pricing data (actually or by specific 

identification in writing) and data other than 

certified cost or pricing data, unless an 

exception under FAR 15.403–1(b) applies. 

* * * * * 

50. Amend section 52.215–2 by—

a. Revising the date of the clause; 

b. Revising the introductory text of 

paragraph (c); and 

c. Removing from paragraph (g)(2) 

‘‘which cost’’ and adding ‘‘which 

certified cost’’ in its place. 

The revised text reads as follows: 

52.215–2 Audit and Records—Negotiation. 

* * * * * 

AUDIT AND RECORDS—NEGOTIATION 

(DATE) 

* * * * * 

(c) Certified cost or pricing data. If the 

Contractor has been required to submit 

certified cost or pricing data and data other 

than certified cost or pricing data in 

connection with any pricing action relating 

to this contract, the Contracting Officer, or an 

authorized representative of the Contracting 

Officer, in order to evaluate the accuracy, 

completeness, and currency of the certified 

cost or pricing data, shall have the right to 

examine and audit all of the Contractor’s 

records, including computations and 

projections, related to—

* * * * * 

51. Amend section 52.215–9 by—

a. Revising the date of the clause; 

b. In Alternate I by revising the date 

of Alternate I and paragraph (d)(1). 

c. In Alternate II by revising the date 

of Alternate II and paragraph (d)(1). 

The revised text reads as follows: 

52.215–9 Changes or Additions to Makeor-Buy Program. 

* * * * * 

CHANGES OR ADDITIONS TO MAKE-ORBUY PROGRAM (DATE) 

* * * * * 

Alternate I (Date). * * * 

(d) * * * 

(1) Support its proposal with certified cost 

or pricing data and data other than certified 

cost or pricing data when permitted and 

necessary to support evaluation; and 

* * * * * 

Alternate II (Date). * * * 

(d) * * * 

(1) Support its proposal with certified cost 

or pricing data and data other than certified 

cost or pricing data to permit evaluation; and 

* * * * * 

52. Amend section 52.215–10 by—

a. Revising the section heading; 

b. Revising the clause heading and 

date of the clause; 

c. Removing from paragraph (a)(1) 

‘‘furnished cost’’ and adding ‘‘furnished 

certified cost’’ in its place, and 

removing from paragraph (a)(2) 

‘‘Contractor cost’’ and adding 

‘‘Contractor certified cost’’ in its place; 

d. Removing from paragraph (b)(2) 

‘‘defective cost’’ and adding ‘‘defective 

certified cost’’ in its place; 

e. Removing from paragraph (c)(1)(i) 

‘‘current cost’’ and adding ‘‘current 

certified cost’’ in its place, and 

removing from paragraphs (c)(1)(ii) and 

(c)(2)(i)(B) ‘‘the cost’’ and adding ‘‘the 

certified cost’’ in its place; and 


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f. Removing from paragraph (d)(2) 

‘‘submitted cost’’ and adding 

‘‘submitted certified cost’’ in its place. 

The revised text reads as follows: 

52.215–10 Price Reduction for Defective 

Certified Cost or Pricing Data. 

* * * * * 

PRICE REDUCTION FOR DEFECTIVE 

CERTIFIED COST OR PRICING DATA 

(DATE) 

* * * * * 

53. Amend section 52.215–11 by—

a. Revising the section heading; 

b. Revising the clause heading and 

date of the clause; 

c. Removing from paragraph (a) ‘‘of 

cost’’ and adding ‘‘of certified cost’’ in 

its place; 

d. Removing from paragraph (b)(1) 

‘‘furnished cost’’ and adding ‘‘furnished 

certified cost’’ in its place; and 

removing from paragraph (b)(2) 

‘‘Contractor cost’’ and adding 

‘‘Contractor certified cost’’ in its place; 

e. Removing from paragraph (c)(2) 

‘‘defective cost’’ and adding ‘‘defective 

certified cost’’ in its place; 

f. Removing from paragraph (d)(1)(i) 

‘‘current cost’’ and adding ‘‘current 

certified cost’’ in its place; and 

removing from paragraphs (d)(1)(ii) and 

(d)(2)(i)(B) ‘‘the cost’’ and adding ‘‘the 

certified cost’’ in its place; and 

g. Removing from paragraph (e)(2) 

‘‘submitted cost’’ and adding 

‘‘submitted certified cost’’ in its place. 

The revised text reads as follows: 

52.215–11 Price Reduction for Defective 

Certified Cost or Pricing Data—

Modifications. 

* * * * * 

PRICE REDUCTION FOR DEFECTIVE 

CERTIFIED COST OR PRICING DATA—

MODIFICATIONS (DATE) 

* * * * * 

54. Amend section 52.215–12 by—

a. Revising the section heading; 

b. Revising the clause heading and 

date of the clause; 

c. Removing from paragraph (a) ‘‘of 

cost’’ each time it appears (twice) and 

adding ‘‘of certified cost’’ in its place, 

and removing ‘‘submit cost’’ and adding 

‘‘submit certified cost’’ in its place; 

d. Removing from the introductory 

text of paragraph (c) and (c)(1) ‘‘of cost’’

and adding ‘‘of certified cost’’ in its 

place; and 

e. Removing from paragraph (c)(2) 

‘‘Subcontractor Cost’’ and adding 

‘‘Subcontractor Certified Cost’’ in its 

place. 

The revised text reads as follows: 

52.215–12 Subcontractor Certified Cost or 

Pricing Data. 

* * * * * 

SUBCONTRACTOR CERTIFIED COST OR 

PRICING DATA (DATE) 

* * * * * 

55. Amend section 52.215–13 by—

a. Revising the section heading; 

b. Revising the clause heading and 

date of the clause; 

c. Removing from paragraph (a)(1) ‘‘of 

cost’’ and adding ‘‘of certified cost’’ in 

its place; 

d. Revising paragraph (b); and 

e. Removing from paragraph (d) ‘‘of 

cost’’ and adding ‘‘of certified cost’’ in 

its place; 

The revised text reads as follows: 

52.215–13 Subcontractor Certified Cost or 

Pricing Data—Modifications. 

* * * * * 

SUBCONTRACTOR CERTIFIED COST OR 

PRICING DATA—MODIFICATIONS (DATE) 

* * * * * 

(b) Before awarding any subcontract 

expected to exceed the threshold for 

submission of certified cost or pricing data at 

FAR 15.403–4, on the date of agreement on 

price or the date of award, whichever is later; 

or before pricing any subcontract 

modification involving a pricing adjustment 

expected to exceed the threshold for 

submission of certified cost or pricing data at 

FAR 15.403–4, the Contractor shall require 

the subcontractor to submit certified cost or 

pricing data (actually or by specific 

identification in writing) and data other than 

certified cost or pricing data, unless an 

exception under FAR 15.403–1 applies. 

* * * * * 

52.215–14 [Amended] 

56. Amend section 52.215–14 by—

a. Revising the date of the clause to 

read ‘‘(Date)’’; 

b. Removing from the last sentence of 

paragraph (a) ‘‘of cost’’ and adding ‘‘of 

certified cost’’ in its place; and 

c. Revising the date of Alternate I to 

read ‘‘(Date)’’. 

52.215–15 [Amended] 

57. Amend section 52.215–15 by 

revising the date of the clause to read 

‘‘(Date)’’; and removing from paragraph 

(b)(2) and the second sentence of 

paragraph (c) ‘‘which cost’’ and adding 

‘‘which certified cost’’ in its place. 

58. Amend section 52.215–20 by—

a. Revising the section heading; 

b. Revising the provision heading and 

date of the provision; 

c. Revising the introductory text of 

paragraph (a) of the provision; 

d. Removing from the first sentence of 

paragraph (a)(1) of the provision 

‘‘submitting cost’’ and adding 

‘‘submitting certified cost’’ in its place; 

e. Revising the introductory text of 

paragraph (b) and (b)(1) of the provision; 

f. Revising Alternate I; 

g. Revising the date of Alternate II; 

h. Revising the date of Alternate III; 

i. Revising the date of Alternate IV 

and paragraphs (a) and (b). 

The revised text reads as follows: 

52.215–20 Requirements for Certified Cost 

or Pricing Data and Data Other Than 

Certified Cost or Pricing Data. 

* * * * * 

REQUIREMENTS FOR CERTIFIED COST OR 

PRICING DATA AND DATA OTHER THAN 

CERTIFIED COST OR PRICING DATA 

(DATE) 

(a) Exceptions from certified cost or pricing 

data. 

* * * * * 

(b) Requirements for certified cost or 

pricing data and data other than certified 

cost or pricing data. If the offeror is not 

granted an exception from the requirement to 

submit certified cost or pricing data, the 

following applies: 

(1) The offeror shall prepare and submit 

certified cost or pricing data, data other than 

certified cost or pricing data, and supporting 

attachments in accordance with the 

instructions contained in Table 15–2 of FAR 

15.408 which is incorporated by reference 

with the same force and effect as though it 

were inserted here in full text. The 

instructions in Table 15–2 are incorporated 

as a mandatory format to be used in this 

contract, unless the Contracting Officer and 

the Contractor negotiate a different format 

and change this clause to use Alternative I. 

* * * * * 

Alternate I (Date). As prescribed in 

15.408(l) and 15.403–5(b)(1), substitute the 

following paragraph (b)(1) for paragraph 

(b)(1) of the basic provision: 

(b)(1) The offeror shall submit certified cost 

or pricing data, data other than certified cost 

or pricing data, and supporting attachments 

in the following format: [Insert description of 

the data and format that are required, 

including access to records necessary to 

permit an adequate evaluation of the 

proposed price in accordance with 15.403–4. 

The description may be inserted at the time 

of issuing the solicitation, the contracting 

officer may specify that the offeror’s format 

will be acceptable, or the description may be 

inserted as the result of negotiations.] 

Alternate II (Date). * * * 

* * * * * 

Alternate III (Date). * * * 

* * * * * 

Alternate IV (Date). * * * 

(a) Submission of certified cost or pricing 

data is not required. 

(b) Provide data described below: [Insert 

description of the data and the format that 

are required, including access to records 

necessary to permit an adequate evaluation 

of the proposed price in accordance with 

15.403–3.] 

59. Amend section 52.215–21 by—

a. Revising the section heading; 

b. Revising the clause heading and 

date of the clause; 

c. Revising the introductory text of 

paragraph (a) of the clause; 

d. Removing from the first sentence of 

paragraph (a)(1) of the clause 


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‘‘submitting cost’’ and adding 

‘‘submitting certified cost’’ in its place; 

e. Removing from paragraph 

(a)(1)(ii)(A)(1) of the clause ‘‘from cost’’

and adding ‘‘from certified cost’’ in its 

place; 

f. Revising the introductory text of 

paragraph (b) and (b)(1) of the clause; 

g. Removing and reserving Alternate I; 

h. Revising the date of Alternate II; 

i. Revising the date of Alternate III; 

j. Revising the date of Alternate IV 

and paragraphs (a) and (b). 

The revised text reads as follows: 

52.215–21 Requirements for Certified Cost 

or Pricing Data and Data Other Than 

Certified Cost or Pricing Data—

Modifications. 

* * * * * 

REQUIREMENTS FOR CERTIFIED COST OR 

PRICING DATA AND DATA OTHER THAN 

CERTIFIED COST OR PRICING DATA—

MODIFICATIONS (DATE) 

(a) Exceptions from certified cost or pricing 

data. 

* * * * * 

(b) Requirements for certified cost or 

pricing data and data other than certified 

cost or pricing data. If the Contractor is not 

granted an exception from the requirement to 

submit certified cost or pricing data, the 

following applies: 

(1) The Contractor shall submit certified 

cost or pricing data, data other than certified 

cost or pricing data, and supporting 

attachments in accordance with the 

instructions contained in Table 15–2 of FAR 

15.408 which is incorporated by reference 

with the same force and effect as though it 

were inserted here in full text. The 

instructions in Table 15–2 are incorporated 

as a mandatory format to be used in this 

contract, unless the Contracting Officer and 

the Contractor negotiate a different format 

and change this clause to use Alternative I. 

* * * * * 

Alternate I [Reserved] 

Alternate II (Date). * * * 

* * * * * 

Alternate III (Date). * * * 

* * * * * 

Alternate IV (Date). * * * 

(a) Submission of certified cost or pricing 

data is not required. 

(b) Provide data described below: [Insert 

description of the data and the format that 

are required, including access to records 

necessary to permit an adequate evaluation 

of the proposed price in accordance with 

15.403–3.] 

60. Amend section 52.216–25 by—

a. Revising the date of the clause; 

b. Revising the third sentence of 

paragraph (a) of the clause; and 

c. Removing from the paragraph (b) of 

the clause ‘‘and cost’’ and adding ‘‘and 

certified cost’’ in its place. 

The revised text reads as follows: 

52.216–25 Contract Definitization. 

* * * * * 

CONTRACT DEFINITIZATION (DATE) 

(a) * * * The Contractor agrees to submit 

a lllllllll [insert specific type of 

proposal; e.g., fixed-price or cost-and-fee] 

proposal along with certified cost or pricing 

data and data other than certified cost or 

pricing data supporting its proposal. 

* * * * * 

52.230–2 [Amended] 

61. Amend section 52.230–2 by 

revising the date of the clause to read 

‘‘(Date)’’; and removing from the first 

sentences of paragraphs (a)(3) and (d) 

‘‘submitted cost’’ and adding 

‘‘submitted certified cost’’ in its place. 

52.230–5 [Amended] 

62. Amend section 52.230–5 by 

revising the date of the clause to read 

‘‘(Date)’’; and removing from the first 

sentence of paragraph (a)(3) and the 

introductory text of paragraph (d) 

‘‘submitted cost’’ and adding 

‘‘submitted certified cost’’ in its place. 

52.232–17 [Amended] 

63. Amend section 52.232–17 by 

revising the date of the clause to read 

‘‘(Date)’’; and removing from the first 

sentence of paragraph (a) ‘‘Defective 

Cost’’ and adding ‘‘Defective Certified 

Cost’’ in its place. 

64. Amend section 52.244–2 by—

a. Revising the date of the clause; 

b. Revising paragraph (f)(1)(v); 

c. Removing from paragraph 

(f)(1)(vii)(C) ‘‘reason cost’’ and adding 

‘‘reason certified cost’’ in its place; and 

d. Removing from paragraphs 

(f)(1)(vii)(D) and (f)(1)(vii)(E) 

‘‘subcontractor’s cost’’ and adding 

‘‘subcontractor’s certified cost’’ in its 

place. 

The revised text reads as follows: 

52.244–2 Subcontracts. 

* * * * * 

SUBCONTRACTS (DATE) 

* * * * * 

(f) * * * 

(1) * * * 

(v) The subcontractor’s current, complete, 

and accurate certified cost or pricing data, 

data other than certified cost or pricing data 

and Certificate of Current Cost or Pricing 

Data, if required by other contract provisions. 

* * * * * 

[FR Doc. 07–1927 Filed 4–20–07; 8:45 am] 

BILLING CODE 6820–EP–S 


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