52.214-28
Subcontractor Certified Cost or Pricing Data-Modifications-Sealed Bidding
Contractors must obtain and certify subcontractor cost or pricing data for significant contract modifications, ensuring compliance with FAR thresholds and flowdown requirements.
Overview
FAR 52.214-28 requires contractors, under sealed bidding procedures, to obtain certified cost or pricing data from subcontractors for contract modifications that exceed the threshold set in FAR 15.403-4(a)(1). This clause ensures that, for significant contract modifications, the government receives accurate, complete, and current cost or pricing data from subcontractors, unless an exception applies. The clause also mandates that contractors flow down these requirements to applicable subcontracts and obtain proper certification from subcontractors. Alternate I provides specific thresholds based on the date of subcontract award or modification, reflecting changes in statutory requirements.
Key Rules
- Applicability Threshold
- The clause applies to contract modifications where the aggregate cost changes (plus profit) exceed the certified cost or pricing data threshold in FAR 15.403-4(a)(1) at the time of modification.
- Subcontractor Data Requirement
- Contractors must require subcontractors to submit certified cost or pricing data for subcontracts or modifications exceeding the threshold, unless an exception under FAR 15.403-1(b) applies.
- Certification Requirement
- Subcontractors must certify that their cost or pricing data is accurate, complete, and current as of the date of price agreement.
- Flowdown Clause
- Contractors must include this clause in all subcontracts that exceed the threshold.
- Alternate I Thresholds
- For subcontracts awarded before July 1, 2018, the threshold is $950,000; for those awarded or modified on/after July 1, 2018, the threshold is $2.5 million.
Responsibilities
- Contracting Officers: Ensure the clause is included in applicable solicitations and contracts; verify compliance during contract administration.
- Contractors: Obtain and review certified cost or pricing data from subcontractors, secure required certifications, and flow down the clause to qualifying subcontracts.
- Agencies: Oversee contractor compliance and enforce requirements as needed.
Practical Implications
- This clause protects the government from overpaying by requiring transparency in subcontractor pricing for significant modifications. Contractors must be diligent in collecting, reviewing, and certifying data, and in ensuring all qualifying subcontracts include the clause. Failure to comply can result in contract disputes, penalties, or disallowance of costs.