52.214-28
Subcontractor Certified Cost or Pricing Data-Modifications-Sealed Bidding
Contractors must obtain and certify subcontractor cost or pricing data for qualifying contract modifications and ensure these requirements are flowed down to applicable subcontracts.
Overview
FAR 52.214-28 establishes requirements for contractors to obtain certified cost or pricing data from subcontractors for contract modifications under sealed bidding procedures when the value of the modification exceeds the threshold specified in FAR 15.403-4(a)(1). The clause ensures that subcontractor pricing is transparent and verifiable, supporting fair and reasonable pricing in government contracts. The requirements apply only to modifications that meet or exceed the current threshold for certified cost or pricing data, and contractors must flow down these requirements to applicable subcontracts.
Key Rules
- Applicability to Modifications
- The clause applies only to contract modifications where the aggregate cost changes (including profit) exceed the certified cost or pricing data threshold at the time of modification.
- Subcontractor Data Submission
- Contractors must require subcontractors to submit certified cost or pricing data for subcontracts or subcontract modifications exceeding the threshold, unless an exception under FAR 15.403-1(b) applies.
- Certification Requirement
- Subcontractors must certify that the data submitted is accurate, complete, and current as of the date of price agreement.
- Flowdown Requirement
- Contractors must include the substance of this clause in all subcontracts that exceed the threshold.
- Alternate I
- Provides specific thresholds and effective dates for subcontracts awarded or modified before and after July 1, 2018.
Responsibilities
- Contracting Officers: Ensure the clause is included in applicable solicitations and contracts.
- Contractors: Obtain and verify certified cost or pricing data from subcontractors, ensure proper certification, and flow down the clause to qualifying subcontracts.
- Agencies: Oversee compliance and enforce requirements as part of contract administration.
Practical Implications
- This clause is designed to prevent overpricing and ensure the government pays fair and reasonable prices for contract modifications.
- Contractors must monitor thresholds, maintain documentation, and ensure timely collection and certification of subcontractor data.
- Failure to comply can result in contract delays, disallowance of costs, or other penalties.