15.408
Solicitation provisions and contract clauses
FAR 15.408 mandates specific clauses and detailed proposal instructions for contracts requiring cost or pricing data, making compliance critical for both contracting officers and contractors.
Overview
FAR 15.408 prescribes the specific solicitation provisions and contract clauses that contracting officers must include in solicitations and contracts involving cost or pricing data, make-or-buy programs, unit pricing, pension adjustments, facilities capital cost of money, postretirement benefits, ownership changes, and pass-through charges. It also provides detailed instructions (Table 15-2) for submitting cost/price proposals when certified cost or pricing data are required, including required formats and supporting documentation.
Key Rules
- Make-or-Buy Program Clauses
- Use clause 52.215-9 and its alternates for contracts with make-or-buy programs, depending on contract type.
- Certified Cost or Pricing Data Clauses
- Insert clauses 52.215-10, -11, -12, and -13 as appropriate for prime and subcontractor cost or pricing data requirements and modifications.
- Integrity of Unit Prices
- Use clause 52.215-14 except for certain contract types and thresholds.
- Pension and Postretirement Adjustments
- Include clauses 52.215-15 and -18 for contracts subject to cost/pricing data or cost determinations.
- Facilities Capital Cost of Money
- Use provisions 52.215-16 and -17 as applicable based on whether the contractor proposes this cost.
- Notification of Ownership Changes
- Insert clause 52.215-19 when cost/pricing data or cost determinations apply.
- Requirements for Cost or Pricing Data
- Use provisions 52.215-20 and -21 (and alternates) for certified and other cost/pricing data, including for modifications.
- Limitations on Pass-Through Charges
- Insert clauses 52.215-22 and -23 for contracts/orders above certain thresholds and contract types.
- Table 15-2 Proposal Instructions
- Contractors must follow detailed instructions for proposal content, supporting data, and formats when submitting certified cost or pricing data.
Responsibilities
- Contracting Officers: Must select and insert the correct clauses and provisions based on contract type, value, and data requirements; ensure compliance with Table 15-2 instructions.
- Contractors: Must submit proposals and supporting data per Table 15-2, provide accurate and current cost/pricing data, and comply with all applicable clauses.
- Agencies: Oversee compliance, review proposals, and enforce clause requirements.
Practical Implications
- Ensures consistency and compliance in the use of cost/pricing data and related clauses.
- Contractors must be diligent in proposal preparation, data submission, and clause compliance to avoid defective pricing and penalties.
- Common pitfalls include missing required clauses, incomplete data submissions, or failure to update data before price agreement.