Certificate of Current Cost or Pricing Data
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.