Prohibition on obtaining certified cost or pricing data (10 U.S.C. chapter 271 and 41 U.S.C. CHAPTER 35)
Certified cost or pricing data cannot be required below the simplified acquisition threshold or when specific exceptions—such as adequate price competition, commercial items, or waivers—apply, but alternative data may still be needed to justify fair and reasonable pricing.
Overview
FAR 15.403-1 establishes when contracting officers are prohibited from obtaining certified cost or pricing data from contractors and subcontractors. Certified cost or pricing data cannot be required for acquisitions at or below the simplified acquisition threshold. The regulation outlines specific exceptions where such data is not required, including adequate price competition, prices set by law or regulation, commercial products or services, and when a waiver is granted. It also details the standards for each exception, including requirements for written determinations, approvals, and supporting documentation. The rule aims to streamline procurement, reduce unnecessary administrative burden, and ensure fair and reasonable pricing without over-collecting sensitive cost data.
Key Rules
- No Certified Data Below Simplified Acquisition Threshold
- Certified cost or pricing data must not be obtained for acquisitions at or below the simplified acquisition threshold.
- Exceptions to Certified Data Requirement
- Exceptions include adequate price competition, prices set by law/regulation, commercial products/services, and waivers. Each has specific standards and documentation requirements.
- Adequate Price Competition
- Defined by multiple independent offers, best value selection, and no unreasonable pricing. For non-DoD, NASA, or Coast Guard, a single offer may qualify if competition was expected and price is reasonable.
- Commercial Products/Services
- Acquisitions of commercial items or minor modifications are generally exempt, with special rules for DoD, NASA, and Coast Guard.
- Waivers
- The HCA may grant written waivers in exceptional cases, with rationale and specific subcontractor guidance.
Responsibilities
- Contracting Officers: Must determine and document when exceptions apply, ensure proper approvals, and request alternative data as needed.
- Contractors: Must provide data other than certified cost or pricing data when requested and comply with documentation requirements for exceptions.
- Agencies: HCA must approve waivers and ensure compliance with exception standards and documentation.
Practical Implications
This section reduces administrative burden by limiting when certified cost or pricing data can be required, focusing on risk-based exceptions. Contractors benefit from fewer data submission requirements, but must be prepared to provide alternative data and support exception determinations. Common pitfalls include failing to document exception rationale or misunderstanding when exceptions apply, especially for commercial items and modifications.