14.201-7
Contract clauses
FAR 14.201-7 mandates specific clauses for sealed bidding contracts, especially regarding audit rights and cost/pricing data, with special rules for Recovery Act funds and foreign government contracts.
Overview
FAR 14.201-7 outlines the mandatory contract clauses that must be included in solicitations and contracts awarded through sealed bidding. It specifies when to use certain clauses related to audit and records, price reduction for defective cost or pricing data, subcontractor cost or pricing data, and order of precedence. The section also addresses special requirements for contracts funded by the American Recovery and Reinvestment Act of 2009 and provides for waivers in contracts with foreign governments under certain conditions.
Key Rules
- Audit and Records Clause (52.214-26)
- Required for sealed bid contracts exceeding the certified cost or pricing data threshold, with special provisions (Alternate I) for contracts using Recovery Act funds.
- Price Reduction for Defective Cost or Pricing Data (52.214-27)
- Must be included in contracts exceeding the cost or pricing data threshold; waivers are possible for foreign government contracts.
- Subcontractor Cost or Pricing Data (52.214-28)
- Required for contracts above the threshold; contractors with pre-July 1, 2018 contracts can request an update to Alternate I without consideration.
- Order of Precedence (52.214-29)
- Inserted in contracts using the uniform contract format.
Responsibilities
- Contracting Officers: Ensure correct clauses are inserted based on contract value, funding source, and contract type; document waivers for foreign government contracts.
- Contractors: Comply with the requirements of the inserted clauses, especially regarding cost or pricing data and audit rights.
- Agencies: Approve and document waivers when applicable.
Practical Implications
- Ensures transparency, auditability, and pricing integrity in sealed bidding contracts.
- Contractors must be aware of which clauses apply, especially when Recovery Act funds are involved or when dealing with subcontractors.
- Failure to include or comply with these clauses can result in contract disputes or noncompliance findings.