15.406
Documentation
FAR 15.406 requires thorough documentation of contract pricing negotiations, including prenegotiation objectives, certified cost or pricing data, and detailed records of the negotiation process to ensure transparency and compliance.
Overview
FAR 15.406 outlines the documentation requirements for contract pricing negotiations under Subpart 15.4. This section ensures that contracting officers and contractors maintain thorough records of the negotiation process, including prenegotiation objectives, certificates of current cost or pricing data, and detailed documentation of the negotiation itself. The purpose is to provide transparency, support for pricing decisions, and compliance with federal acquisition policies.
Key Rules
- Prenegotiation Objectives (15.406-1)
- Contracting officers must establish clear objectives before negotiations, documenting the rationale for pricing positions and negotiation strategies.
- Certificate of Current Cost or Pricing Data (15.406-2)
- Contractors are required to submit a certificate affirming that cost or pricing data provided is accurate, complete, and current as of the date of agreement.
- Documenting the Negotiation (15.406-3)
- The negotiation process and outcomes must be thoroughly documented, including significant facts, principal elements of the negotiation, and the basis for the final price agreement.
Responsibilities
- Contracting Officers: Prepare and document prenegotiation objectives, obtain and retain certificates of current cost or pricing data, and ensure comprehensive negotiation documentation.
- Contractors: Submit accurate and current cost or pricing data and provide the required certification.
- Agencies: Oversee compliance with documentation requirements and maintain records for audit and review.
Practical Implications
- This section exists to ensure accountability and transparency in contract pricing negotiations.
- Proper documentation protects both the government and contractors in the event of audits or disputes.
- Common pitfalls include incomplete documentation, failure to obtain required certifications, or inadequate support for pricing decisions.