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 flow down these requirements to qualifying subcontracts, unless an exception applies.
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 inflation adjustments). This clause ensures that subcontractor pricing for significant modifications is transparent and verifiable, unless an exception applies. The clause also mandates that contractors flow down these requirements to applicable subcontracts and obtain proper certification from subcontractors regarding the accuracy, completeness, and currency of their data.
Key Rules
- Applicability Threshold
- The requirements apply only to contract modifications involving pricing adjustments expected to exceed the certified cost or pricing data threshold in FAR 15.403-4(a)(1).
- Subcontractor Data Submission
- Contractors must require subcontractors to submit certified cost or pricing data before awarding or modifying subcontracts above 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.
- Clause Flowdown
- Contractors must include the substance of this clause in all subcontracts that exceed the threshold.
- Alternate I
- For certain contracts, Alternate I provides specific thresholds based on the date of subcontract award ($750,000 before July 1, 2018; $2 million on or after July 1, 2018).
Responsibilities
- Contracting Officers: Ensure the clause is included in applicable contracts and modifications.
- Contractors: Obtain and review certified cost or pricing data from subcontractors, secure proper certification, and flow down the clause to qualifying subcontracts.
- Agencies: Monitor compliance and enforce requirements as part of contract administration.
Practical Implications
- This clause is designed to prevent overpricing and ensure fair and reasonable pricing for contract modifications.
- Contractors must be vigilant about current thresholds and exceptions, and ensure proper documentation and certification from subcontractors.
- Failure to comply can result in contract disputes, penalties, or disallowance of costs.