52.215-12
Subcontractor Certified Cost or Pricing Data
Prime contractors must obtain and certify subcontractor cost or pricing data for subcontracts exceeding the FAR threshold, ensuring accurate and current pricing information is provided to the government.
Overview
FAR 52.215-12 requires prime contractors to obtain certified cost or pricing data from subcontractors before awarding subcontracts or modifications that exceed the threshold specified in FAR 15.403-4(a)(1), unless an exception applies. This clause ensures that subcontract pricing is based on accurate, complete, and current data, supporting fair and reasonable pricing in government contracts. The clause also mandates that subcontractors certify the accuracy of their data and that the requirement flows down to applicable subcontracts. Alternate I provides specific thresholds for contracts awarded before and after July 1, 2018.
Key Rules
- Certified Cost or Pricing Data Requirement
- Contractors must require subcontractors to submit certified cost or pricing data for subcontracts or modifications exceeding the FAR threshold, unless an exception applies.
- Certification of Data
- Subcontractors must certify that the data provided is accurate, complete, and current as of the date of price agreement.
- Flowdown Clause
- Contractors must include the substance of this clause (or FAR 52.215-13 for modifications) in applicable subcontracts.
- Threshold Adjustments
- If the threshold is adjusted for inflation, the new threshold applies for the contract's remaining term.
- Alternate I (Effective Oct 2025)
- Sets different thresholds for subcontracts awarded before and after July 1, 2018 ($950,000 and $2.5 million, respectively).
Responsibilities
- Contracting Officers: Ensure the clause is included in prime contracts and monitor compliance.
- Contractors: Obtain, review, and retain certified cost or pricing data from subcontractors; ensure proper certification and clause flowdown.
- Agencies: Oversee contractor compliance and enforce requirements.
Practical Implications
- This clause is critical for ensuring price reasonableness and preventing overcharging in government contracts.
- Contractors must be vigilant about threshold changes and exceptions.
- Failure to comply can result in defective pricing claims, contract adjustments, or penalties.