Changes or Additions to Make-or-Buy Program
Contractors must obtain written approval from the Contracting Officer before making any changes or additions to the contract's make-or-buy program, providing detailed justification and, when required, supporting cost or pricing data.
Overview
FAR 52.215-9 establishes requirements for contractors to follow the make-or-buy program incorporated into their contract. Contractors must notify the Contracting Officer in writing and provide detailed justification before making any changes or additions to the approved make-or-buy program, including changes in the place of performance for "make" items. For items deferred for later addition, contractors must notify and justify additions as soon as possible. No changes or additions are effective until the Contracting Officer provides written approval. Alternate I and II clauses add requirements for reversing "make" or "buy" decisions, including providing certified cost or pricing data and negotiating equitable contract price or fee reductions after approval.
Key Rules
- Notification and Justification of Changes
- Contractors must notify the Contracting Officer in writing and provide sufficient justification before making changes or additions to the make-or-buy program.
- Approval Requirement
- Changes or additions are not effective until the Contracting Officer gives written approval.
- Deferred Items
- For items deferred at contract negotiation, contractors must notify and justify proposed additions at the earliest possible time.
- Reversal of Make-or-Buy Decisions (Alternates I & II)
- Contractors must provide certified cost or pricing data and negotiate equitable reductions in contract price or fee when reversing make-or-buy decisions, as specified in the contract.
Responsibilities
- Contracting Officers: Review and approve or disapprove proposed changes or additions to the make-or-buy program; negotiate equitable reductions as required.
- Contractors: Notify, justify, and obtain approval for any changes or additions to the make-or-buy program; provide required cost or pricing data for reversals; negotiate reductions as applicable.
- Agencies: Ensure oversight and compliance with make-or-buy program requirements.
Practical Implications
This clause ensures transparency and government oversight over key sourcing decisions, helping control costs and maintain program integrity. Contractors must maintain clear communication and documentation regarding make-or-buy changes, and failure to comply can delay contract performance or result in disallowed costs. Common pitfalls include insufficient justification or failure to obtain written approval before implementing changes.