Good morning FUN with the FAR Friends!
Thank you for joining us for another great episode of FUN with the FAR!
As a follow-up to Wednesday’s session, here are a few facts to ponder as we prepare for our next session of Fun with the FAR:
Did You Know?
FAR 15.4 price negotiations and procedures should be used by contracting officers to determine the price reasonableness of modifications offered under a sealed bid contract. FAR 15.400.
Did You Know?
The Government is not permitted to request the submission of “certified” cost or pricing data if:
- There is “adequate price competition” (FAR 15.403-1(c)(1));
- Proposed prices are set by law or regulation (FAR 15.403-1(c)(2));
- The procurement is for commercial products and commercial services (FAR 15.403- 1(c)(3);
- The contracting officer has obtained a waiver of a requirement to obtain certified cost or pricing data from the head of the contracting activity (FAR 15.403-1(c)(4); or
- The value of the contract or contract modification is less than $750,000, for prime contracts awarded before July 1, 2018, and $2 million for prime contracts awarded on or after July 1, 2018 (FAR 15.403-4).
Did You Know?
The contracting officer is required to utilize “price analysis” techniques when certified cost or pricing data is not required to be disclosed. FAR 15.404-1(a)(2).
Did You Know?
Cost analysis is the review and evaluation of any separate cost elements and profit or fee in a contractor’s proposal, as needed to determine a fair and reasonable price or to determine 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. FAR 15.404-1(c).
Did You Know?
Examples of cost analysis techniques can be found at FAR 15.404-1(c)(2).
Did You Know?
Prime contractors who intend to subcontract more than 70% of the total cost of work to be performed under a contract are subject to the Limitations on Pass-Through Charges clauses set forth at 52.215-22 or 52.215-23. Each clause requires that the prime contractor identify to the Government the indirect cost and profit applied to the subcontracted effort and describe the value added to the subcontracted effort by the prime to justify that indirect cost rate or profit. Any rate or profit deemed “excessive” will be deemed unallowable under the contract.
Did You Know?
A prime contractor is required to conduct appropriate cost or price analysis to establish the reasonableness of proposed subcontractor pricing. FAR 15.404-3(b).