52.215-13
Subcontractor Certified Cost or Pricing Data-Modifications
Contractors must obtain and certify subcontractor cost or pricing data for significant contract modifications and ensure these requirements are flowed down to all qualifying subcontracts.
Overview
FAR 52.215-13 requires contractors to obtain certified cost or pricing data from subcontractors for contract modifications that exceed the threshold specified in FAR 15.403-4(a)(1) (currently $2 million, but subject to adjustment). This clause ensures that pricing adjustments for significant modifications are based on accurate, complete, and current data, unless an exception applies. The clause also mandates that contractors flow down these requirements to applicable subcontracts and obtain a certification from subcontractors per FAR 15.406-2. Alternate I provides specific thresholds based on the date of subcontract award and clarifies aggregate cost adjustments.
Key Rules
- Applicability to Modifications
- The clause applies only to contract modifications involving pricing adjustments above 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 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 exceeding the threshold.
- Alternate I Thresholds
- For subcontracts awarded before July 1, 2018, the threshold is $950,000; for those awarded on or after July 1, 2018, it is $2.5 million.
Responsibilities
- Contracting Officers: Ensure the clause is included in applicable contracts and verify compliance.
- 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 is designed to prevent overpricing and ensure fair and reasonable pricing for contract modifications. Contractors must be vigilant in collecting, reviewing, and certifying subcontractor data, and in updating contract language as thresholds change. Common pitfalls include failing to obtain proper certifications or not flowing down the clause to subcontracts, which can result in noncompliance and potential penalties.