15.400
Scope of subpart
FAR 15.400 defines the scope for cost and price negotiation rules, applying them to all negotiated contracts, subcontracts, and modifications—including those from sealed bids.
Overview
FAR 15.400 establishes the scope for Subpart 15.4, which sets forth the policies and procedures for cost and price negotiations in government contracting. This section clarifies that the subpart applies to the pricing of negotiated prime contracts, subcontracts, and contract modifications, including those modifications made to contracts originally awarded through sealed bidding. The intent is to ensure that all parties involved in government contracts understand the requirements for determining fair and reasonable pricing during negotiations and modifications.
Key Rules
- Applicability to Negotiated Contracts and Modifications
- The subpart covers all negotiated prime contracts, subcontracts, and contract modifications, regardless of the original award method.
- Inclusion of Sealed Bid Modifications
- Even contracts initially awarded by sealed bidding fall under these policies when modified.
Responsibilities
- Contracting Officers: Must follow the prescribed negotiation policies and procedures for pricing.
- Contractors: Should be prepared to comply with cost and price analysis requirements during negotiations and modifications.
- Agencies: Ensure oversight and adherence to pricing policies for all applicable contracts and modifications.
Practical Implications
- This section ensures consistency and fairness in pricing negotiations for government contracts and modifications.
- Contractors must be aware that modifications to sealed bid contracts are subject to negotiation policies.
- Common pitfalls include overlooking the applicability to subcontracts or modifications, leading to compliance issues.