52.215-9 Changes or Additions to Make-or-Buy Program
Source: FAR 52.215-9 on acquisition.gov
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.
As prescribed in 15.408(a), insert the following clause:
Changes or Additions to Make-or-Buy Program (Oct 1997)
(a) The Contractor shall perform in accordance with the make-or-buy program incorporated in this contract. If the Contractor proposes to change the program, the Contractor shall, reasonably in advance of the proposed change, (1) notify the Contracting Officer in writing, and (2) submit justification in sufficient detail to permit evaluation. Changes in the place of performance of any "make" items in the program are subject to this requirement.
(b) For items deferred at the time of negotiation of this contract for later addition to the program, the Contractor shall, at the earliest possible time-
(1) Notify the Contracting Officer of each proposed addition; and
(2) Provide justification in sufficient detail to permit evaluation.
(c) Modification of the make-or-buy program to incorporate proposed changes or additions shall be effective upon the Contractor’s receipt of the Contracting Officer’s written approval.
(End of clause)
Alternate I (Oct 2010). As prescribed in 15.408 (a)(1) add the following paragraph (d) to the basic clause:
(d) If the Contractor desires to reverse the categorization of "make" or "buy" for any item or items designated in the contract as subject to this paragraph, it shall-
(1) Support its proposal with certified cost or pricing data in accordance with FAR 15.408, Table 15-1 when required by FAR 15.403, and data other than certified cost or pricing data, to permit evaluation; and
(2) After approval is granted, promptly negotiate with the Contracting Officer an equitable reduction in the contract price in accordance with paragraph (k) of the Incentive Price Revision-Firm Target clause or paragraph (m) of the Incentive Price Revision-Successive Targets clause of this contract.
Alternate II (Oct 2010). As prescribed in 15.408 (a)(2), add the following paragraph (d) to the basic clause:
(d) If the Contractor desires to reverse the categorization of "make" or "buy" for any item or items designated in the contract as subject to this paragraph, it shall-
(1) Support its proposal with certified cost or pricing data in accordance with FAR 15.408, Table 15-1, when required by FAR 15.403, and data other than certified cost or pricing data, to permit evaluation; and
(2) After approval is granted, promptly negotiate with the Contracting Officer an equitable reduction in the contract's total estimated cost and fee in accordance with paragraph (e) of the Incentive Fee clause of this contract.