15.403-1
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 is not required for acquisitions at or below the simplified acquisition threshold or when specific exceptions 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 and outlines specific exceptions to this requirement. The regulation aims to streamline the acquisition process, reduce unnecessary administrative burdens, and clarify when alternative data may be required to determine fair and reasonable pricing. It applies to contracts, subcontracts, and modifications, and provides detailed standards for exceptions such as adequate price competition, prices set by law or regulation, commercial products or services, and waivers. The section also addresses special rules for minor modifications and waivers, including documentation and approval requirements.
Key Rules
- No Certified Cost or Pricing Data Below SAT
- Certified cost or pricing data cannot be obtained for acquisitions at or below the simplified acquisition threshold (SAT).
- Exceptions to Certified Data Requirement
- Exceptions include adequate price competition, prices set by law/regulation, commercial products/services, waivers, and certain modifications.
- Standards for Exceptions
- Detailed criteria define what constitutes adequate price competition, commercial status, and when waivers are appropriate, including documentation and approval at higher levels.
- Waivers
- The head of the contracting activity may grant waivers in writing, with rationale, and must address lower-tier subcontract requirements.
Responsibilities
- Contracting Officers: Must determine if exceptions apply, document decisions, and obtain alternative data as needed to support price reasonableness.
- Contractors: Must provide data other than certified cost or pricing data when requested and comply with requirements for lower-tier subcontracts if a waiver is granted.
- Agencies: Must ensure proper approval and documentation for waivers and exceptions, and oversee compliance with thresholds and standards.
Practical Implications
- This section reduces unnecessary data submissions, saving time and resources for both contractors and the government.
- Contractors should be prepared to provide alternative pricing data and understand when certified data is not required.
- Common pitfalls include misunderstanding exceptions, failing to document rationale for exceptions or waivers, and not applying the correct thresholds or standards.