52.215-12
Subcontractor Certified Cost or Pricing Data
Contractors must obtain and certify subcontractor cost or pricing data for subcontracts and modifications exceeding the FAR threshold, and flow down these requirements to applicable subcontracts.
Overview
FAR 52.215-12 requires contractors to obtain certified cost or pricing data from subcontractors for subcontracts and 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 the flow-down of these requirements to applicable subcontracts and prescribes the use of a certification form for the data submitted. Alternate I provides specific thresholds based on the date of subcontract award or modification, reflecting changes in the law effective 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 15.403-4(a)(1) 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 or modification.
- Flow-Down Clause
- Contractors must include the substance of this clause (or FAR 52.215-13 for modifications) in applicable subcontracts exceeding the threshold.
- Threshold Adjustments
- If the threshold is adjusted for inflation, the new threshold applies for the remainder of the contract term.
- Alternate I Thresholds
- For subcontracts awarded before July 1, 2018, the threshold is $750,000; for those awarded or modified on/after July 1, 2018, the threshold is $2 million.
Responsibilities
- Contracting Officers: Ensure the clause is included in prime contracts and verify compliance.
- Contractors: Obtain and review certified cost or pricing data from subcontractors, ensure proper certification, and flow down the clause to applicable subcontracts.
- Agencies: Monitor compliance and enforce requirements as part of contract administration.
Practical Implications
- This clause is critical for ensuring price reasonableness and preventing overcharging in government contracts.
- Contractors must be diligent in collecting, certifying, and maintaining subcontractor cost or pricing data.
- Failure to comply can result in defective pricing claims, contract price reductions, or other penalties.