15.406-2 Certificate of Current Cost or Pricing Data
Source: FAR 15.406-2 on acquisition.gov
Contractors must accurately certify that all cost or pricing data submitted for negotiations are current, complete, and accurate as of the agreed date, using the prescribed certificate format.
Overview
FAR 15.406-2 establishes the requirement for contractors to execute a Certificate of Current Cost or Pricing Data when certified cost or pricing data are required. The certificate attests that the data submitted in support of a proposal, price adjustment, or other submission are accurate, complete, and current as of a specified date. The regulation clarifies that the certificate covers the data itself, not the contractor’s judgment or projections based on that data. It also encourages prior agreement on cutoff dates for data submission to streamline negotiations and minimize delays. The section emphasizes that possession of the certificate does not replace the need for the contracting officer to analyze the proposal and that if an exception to certified cost or pricing data is later found, the data should not be certified.
Key Rules
- Certificate Requirement
- Contractors must execute and submit a Certificate of Current Cost or Pricing Data using the prescribed format when required by the contracting officer.
- Scope of Certification
- The certificate applies only to the accuracy, completeness, and currency of the data, not to the contractor’s estimates or judgments.
- Cutoff Dates
- Contracting officers and contractors should agree on cutoff dates for data submission to avoid delays and ensure data is as current as possible.
- Proposal Analysis
- The certificate does not replace the contracting officer’s responsibility to review and analyze the proposal.
- Exceptions
- If an exception to certified cost or pricing data is found after submission, the data should not be certified.
Responsibilities
- Contracting Officers: Must require and retain the executed certificate, agree on cutoff dates, and analyze proposals regardless of certification.
- Contractors: Must accurately certify cost or pricing data, update data as needed, and ensure data is current and complete as of the agreed date.
- Agencies: Ensure compliance with certification requirements and maintain proper documentation.
Practical Implications
- This section ensures the integrity of cost or pricing data used in negotiations, protecting both the government and contractors from disputes over data accuracy. Failure to comply can result in defective pricing claims or contract disputes. Common pitfalls include certifying outdated or incomplete data, misunderstanding the distinction between data and judgment, and neglecting to update data before certification.
(a) When certified cost or pricing data are required, the contracting officer shall require the contractor to execute a Certificate of Current Cost or Pricing Data, using the format in this paragraph, and must include the executed certificate in the contract file.
Certificate of Current Cost or Pricing Data
This is to certify that, to the best of my knowledge and belief, the cost or pricing data (as defined in section 2.101 of the Federal Acquisition Regulation (FAR) and required under FAR subsection 15.403-4) submitted, either actually or by specific identification in writing, to the Contracting Officer or to the Contracting Officer's representative in support of ________* are accurate, complete, and current as of ________**. This certification includes the cost or pricing data supporting any advance agreements and forward pricing rate agreements between the offeror and the Government that are part of the proposal.
Firm _____________________________________________
Signature _________________________________________
Name ____________________________________________
Title _____________________________________________
Date of execution***________________________________
* Identify the proposal, request for price adjustment, or other submission involved, giving the appropriate identifying number (e.g., RFP No.).
** Insert the day, month, and year when price negotiations were concluded and price agreement was reached or, if applicable, an earlier date agreed upon between the parties that is as close as practicable to the date of agreement on price.
***Insert the day, month, and year of signing, which should be as close as practicable to the date when the price negotiations were concluded and the contract price was agreed to.
(End of certificate)
(b) The certificate does not constitute a representation as to the accuracy of the contractor’s judgment on the estimate of future costs or projections. It applies to the data upon which the judgment or estimate was based. This distinction between fact and judgment should be clearly understood. If the contractor had information reasonably available at the time of agreement showing that the negotiated price was not based on accurate, complete, and current data, the contractor’s responsibility is not limited by any lack of personal knowledge of the information on the part of its negotiators.
(c) The contracting officer and contractor are encouraged to reach a prior agreement on criteria for establishing closing or cutoff dates when appropriate in order to minimize delays associated with proposal updates. Closing or cutoff dates should be included as part of the data submitted with the proposal and, before agreement on price, data should be updated by the contractor to the latest closing or cutoff dates for which the data are available. Use of cutoff dates coinciding with reports is acceptable, as certain data may not be reasonably available before normal periodic closing dates (e.g., actual indirect costs). Data within the contractor’s or a subcontractor’s organization on matters significant to contractor management and to the Government will be treated as reasonably available. What is significant depends upon the circumstances of each acquisition.
(d) Possession of a Certificate of Current Cost or Pricing Data is not a substitute for examining and analyzing the contractor’s proposal.
(e) If certified cost or pricing data are requested by the Government and submitted by an offeror, but an exception is later found to apply, the data shall not be considered certified cost or pricing data and shall not be certified in accordance with this subsection.