52.215-13 Subcontractor Certified Cost or Pricing Data-Modifications
Source: FAR 52.215-13 on acquisition.gov
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.
As prescribed in 15.408(e)(1), insert the following clause:
Subcontractor Certified Cost or Pricing Data-Modifications (Jun 2020)
(a) The requirements of paragraphs (b) and (c) of this clause shall—
(1) Become operative only for any modification to this contract involving a pricing adjustment expected to exceed the threshold for submission of certified cost or pricing data in Federal Acquisition Regulation (FAR) 15.403-4(a)(1) on the date of execution of the modification; and
(2) Be limited to such modifications.
(b) Before awarding any subcontract expected to exceed the threshold for submission of certified cost or pricing data in FAR 15.403-4(a)(1), on the date of agreement on price or the date of award, whichever is later; or before pricing any subcontract modification involving a pricing adjustment expected to exceed the threshold for submission of certified cost or pricing data in FAR 15.403-4(a)(1), the Contractor shall require the subcontractor to submit certified cost or pricing data (actually or by specific identification in writing), in accordance with FAR 15.408, Table 15-2 (to include any information reasonably required to explain the subcontractor's estimating process such as the judgmental factors applied and the mathematical or other methods used in the estimate, including those used in projecting from known data, and the nature and amount of any contingencies included in the price), unless an exception under FAR 15.403-1(b) applies. If the threshold for submission of certified cost or pricing data specified in FAR 15.403-4(a)(1) is adjusted for inflation as set forth in FAR 1.109(a), then pursuant to FAR 1.109(d) the changed threshold applies throughout the remaining term of the contract, unless there is a subsequent threshold adjustment.
(c) The Contractor shall require the subcontractor to certify in substantially the form prescribed in FAR 15.406-2 that, to the best of its knowledge and belief, the data submitted under paragraph (b) of this clause were accurate, complete, and current as of the date of agreement on the negotiated price of the subcontract or subcontract modification.
(d) The Contractor shall insert the substance of this clause, including this paragraph (d), in each subcontract that exceeds the threshold for submission of certified cost or pricing data in FAR 15.403-4(a)(1) on the date of agreement on price or the date of award, whichever is later.
(End of clause)
Alternate I (Oct 2025). As prescribed in 15.408 (e)(2), substitute the following paragraphs (a), (b), and (d) for paragraphs (a), (b), and (d) of the basic clause:
(a) The requirements of paragraphs (b) and (c) of this clause shall—
(1) Become operative only for any modification to this contract involving aggregate increases and/or decreases in costs, plus applicable profits, expected to exceed the threshold for submission of certified cost or pricing data at FAR 15.403-4(a)(1); and
(2) Be limited to such modifications.
(b) Unless an exception under FAR 15.403-1 applies, the Contractor shall require the subcontractor to submit certified cost or pricing data (actually or by specific identification in writing), in accordance with FAR 15.408, Table 15-2 (to include any information reasonably required to explain the subcontractor's estimating process such as the judgmental factors applied and the mathematical or other methods used in the estimate, including those used in projecting from known data, and the nature and amount of any contingencies included in the price)—
(1) Before modifying any subcontract that was awarded prior to July 1, 2018, involving a pricing adjustment expected to exceed $950,000; or
(2) Before modifying any subcontract that was awarded on or after July 1, 2018, involving a pricing adjustment expected to exceed $2.5 million.
(d) The Contractor shall insert the substance of this clause, including this paragraph (d), in each subcontract that exceeds $2.5 million.