Defense Federal Acquisition Regulation Supplement: DoD Cost or Pricing Data Requirements (DFARS Case 2022-D004), 79005-79013 [2024-21098]
Download as PDF
Federal Register / Vol. 89, No. 187 / Thursday, September 26, 2024 / Proposed Rules
5. Add section 235.011 to read as
follows:
■
235.011
Data.
(1) The contracting officer shall obtain
a data management plan from the
contractor at the start of the research
project as required by the clause at
252.235–70YY, Data Management Plan.
(2) The contracting officer shall
provide the contractor’s data
management plan to the program
manager for approval and notify the
contractor of such approval or
disapproval.
■ 6. Amend section 235.072 by adding
paragraphs (f) and (g) to read as follows:
235.072
Additional contract clauses.
*
*
*
*
*
(f) Use the clause at 252.235–70XX,
Peer-Reviewed Manuscripts, in
solicitations and contracts for research
and development that include
fundamental research funded in whole
or in part by DoD.
(g) Use the clause at 252.235–70YY,
Data Management Plan, in solicitations
and contracts for research and
development that include fundamental
research funded in whole or in part by
DoD.
PART 252—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
7. Add sections 252.235–70XX and
252.235–70YY to read as follows:
■
252.235–70XX
Manuscripts.
Peer-Reviewed
As prescribed in 235.072(f), use the
following clause:
khammond on DSKJM1Z7X2PROD with PROPOSALS2
Peer-Reviewed Manuscripts (DATE)
(a) Definitions. As used in this clause—
Final peer-reviewed manuscript means an
author’s final manuscript of a peer-reviewed
paper accepted for journal publication,
including all modifications from the peerreview process and manuscripts jointly
authored with DoD personnel during the
period of performance of the fundamental
research contract. It does not include reports
required to be delivered under the terms of
the contract.
Peer-reviewed means a process that
subjects an author’s scholarly work, research,
or ideas to the scrutiny of others who are
experts in the same field and is considered
necessary to ensure scientific quality.
(b) Submission of final peer-reviewed
manuscript. When the final title and date of
publication of the author’s final peerreviewed manuscript are known, the
Contractor shall submit an electronic copy of
the manuscript to one of the following
Defense Technical Information Center
repositories:
(1) Contractors with a common access card
(CAC), personal identity verification (PIV), or
external certification authority (ECA) shall
VerDate Sep<11>2014
17:16 Sep 25, 2024
Jkt 262001
79005
submit to https://discover.dtic.mil/submitdocuments/; or
(2) Contractors without a CAC, PIV, or ECA
shall submit to https://www.osti.gov/elink/
agency-submission.
DEPARTMENT OF DEFENSE
(End of clause)
48 CFR Parts 212, 214, 215, and 252
252.235–70YY
[Docket DARS–2024–0028]
Data Management Plan.
As prescribed in 235.072(g), insert the
following clause:
Data Management Plan (DATE)
(a) Definitions. As used in this clause—
Data means the digitally recorded factual
material commonly accepted in the scientific
community as necessary to validate research
findings, including data sets used to support
scholarly publications including publicly
releasable digital data, algorithms, or other
information central to the conclusions of
published peer-reviewed scientific research.
Data management plan means a document
that describes which data generated during
performance of a research and development
contract will be publicly shared and
preserved and how it will be accomplished,
or a justification of why such actions cannot
be accomplished.
(b) Submission of data management plan.
Within 30 days of contract award, the
Contractor shall submit to the Contracting
Officer, with a copy to the Contracting
Officer’s Representative and the Program
Manager, a data management plan for
approval by the Program Manager. Generally,
the data management plan should not exceed
2 pages and should address elements relevant
to the research discipline for the following
areas (see DoD Instruction 3200.12):
(1) The types of data, software, and other
materials to be produced.
(2) How the data will be acquired.
(3) Time and location of data acquisition,
if scientifically pertinent.
(4) How the data will be processed.
(5) The file formats and the naming
conventions that will be used.
(6) A description of the quality assurance
and quality control measures during
collection, analysis, and processing.
(7) A description of dataset origin when
existing data resources are used.
(8) A description of the standards to be
used for data and metadata format and
content.
(9) Appropriate timeframe for preservation.
(10) The plan may consider the balance
between the relative value of data
preservation and other factors such as the
associated cost and administrative burden.
The plan will provide a justification for such
decisions.
(11) A statement that the data cannot be
made available to the public when there are
national security or controlled unclassified
information concerns.
(c) Implementation and maintenance of the
data management plan. The Contractor shall
implement and maintain the approved data
management plan throughout the
performance of the contract.
(End of clause)
[FR Doc. 2024–21097 Filed 9–25–24; 8:45 am]
BILLING CODE 6001–FR–P
PO 00000
Frm 00003
Fmt 4701
Sfmt 4702
Defense Acquisition Regulations
System
RIN 0750–AL55
Defense Federal Acquisition
Regulation Supplement: DoD Cost or
Pricing Data Requirements (DFARS
Case 2022–D004)
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Proposed rule.
AGENCY:
DoD is proposing to amend
the Defense Federal Acquisition
Regulation Supplement (DFARS) to
implement sections of the National
Defense Authorization Acts for Fiscal
Years 2018, 2021, and 2022 that update
requirements for contractors to submit
cost or pricing data.
DATES: Comments on the proposed rule
should be submitted in writing to the
address shown below on or before
November 25, 2024, to be considered in
the formation of a final rule.
ADDRESSES: Submit comments
identified by DFARS Case 2022–D004,
using either of the following methods:
Æ Federal eRulemaking Portal:
https://www.regulations.gov. Search for
DFARS Case 2022–D004. Select
‘‘Comment’’ and follow the instructions
to submit a comment. Please include
‘‘DFARS Case 2022–D004’’ on any
attached documents.
Æ Email: osd.dfars@mail.mil. Include
DFARS Case 2022–D004 in the subject
line of the message.
Comments received will generally be
posted without change to https://
www.regulations.gov, including any
personal information provided. To
confirm receipt of your comment(s),
please check https://
www.regulations.gov, approximately
two to three days after submission to
verify posting.
FOR FURTHER INFORMATION CONTACT: Mr.
Jon Snyder, telephone 703–945–5341.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Background
DoD is proposing to revise the DFARS
to implement section 811(b) of the
National Defense Authorization Act
(NDAA) for Fiscal Year (FY) 2018 (Pub.
L. 115–91), section 814 of the NDAA for
FY 2021 (Pub. L. 116–283), and section
804 of the NDAA for FY 2022 (Pub. L.
117–81). Section 811(b) of the NDAA for
FY 2018 (10 U.S.C. 2306a(d), now 10
E:\FR\FM\26SEP2.SGM
26SEP2
79006
Federal Register / Vol. 89, No. 187 / Thursday, September 26, 2024 / Proposed Rules
khammond on DSKJM1Z7X2PROD with PROPOSALS2
U.S.C. 3705(a)) requires offerors to
submit data other than certified cost or
pricing data upon contracting officer
request. Section 814 of the NDAA for FY
2021 (10 U.S.C. 2306(a)(1), now 10
U.S.C. 3702(a)(2), (3), and (4))
establishes a $2 million threshold for
the Truthful Cost or Pricing Data statute
(formerly Truth in Negotiations Act
(TINA) and still referred to as TINA)
requirements with respect to contract
modifications, subcontracts, and
modifications to subcontracts,
respectively. Section 804 of the NDAA
for FY 2022 augments the requirement
at 10 U.S.C. 2306a(a)(6), now 10 U.S.C.
3702(f), for contracting officers to
modify contracts to reflect the relevant
TINA threshold.
II. Discussion and Analysis
TINA requires, with exceptions, that
the Government obtain certified cost or
pricing data for certain contract actions
listed at Federal Acquisition Regulation
(FAR) 15.403–4(a)(1), such as negotiated
contracts, certain subcontracts, and
certain contract modifications. Section
811(a) of the NDAA for FY 2018
increased the threshold for requesting
certified cost or pricing data from
$750,000 to $2 million for contracts
entered into after June 30, 2018, but it
left unchanged the $750,000 threshold
for prime contract modifications. The
FAR was amended to reflect this change
effective August 3, 2020.
Section 814 of the NDAA for FY 2021
established a uniform $2 million
threshold for TINA requirements with
respect to DoD for contractual actions,
including prime contract modifications,
entered into after June 30, 2018. In
implementing the change to the
thresholds for prime contract
modifications, this proposed rule
includes a new contract clause at
DFARS 252.215–70SS, Requirements for
Certified Cost or Pricing Data and Data
Other Than Certified Cost or Pricing
Data—Modifications, and its Alternate I.
This clause is prescribed for use in lieu
of FAR 52.215–21, Requirements for
Certified Cost or Pricing Data and Data
Other Than Certified Cost or Pricing
Data—Modifications, in solicitations
and contracts, including solicitations
and contracts using FAR part 12
procedures for the acquisition of
commercial products and commercial
services, if the contracting officer
anticipates, at the time of solicitation,
that postaward submission of certified
cost or pricing data or data other than
certified cost or pricing data may
possibly be required for modifications.
Alternate I is used to specify a format
for certified cost or pricing data other
than the format required by FAR Table
VerDate Sep<11>2014
17:16 Sep 25, 2024
Jkt 262001
15–2. Further, this proposed rule, at
DFARS 215.403–4, requires use of the
$2 million threshold for submission of
certified cost or pricing data in
conjunction with relevant FAR contract
clauses and solicitation provisions
regardless of the date on which the
contract was awarded.
Section 804 of the NDAA for FY 2022
augments the requirement at 10 U.S.C.
3702(f) for contracting officers, in
connection with a contract entered into
on or before June 30, 2018, to modify
the contract to reflect the changed TINA
threshold as necessary. In particular,
section 804 requires that such
modifications be executed ‘‘as soon as
practicable.’’ DoD is proposing to
change DFARS 215.403–4 accordingly,
adding six clauses, prescribed at DFARS
214.201–7 and 215.408, specifically for
use when modifying contracts in
accordance with 10 U.S.C. 3702(f). The
six clauses are as follows:
• 252.214–70QQ, Alternate A, Price
Reduction for Defective Certified Cost or
Pricing Data—Modifications—Sealed
Bidding.
• 252.214–70RR, Alternate A,
Subcontractor Certified Cost or Pricing
Data—Modifications—Sealed Bidding.
• 252.215–70TT, Alternate A, Price
Reduction for Defective Certified Cost or
Pricing Data—Modifications.
• 252.215–70UU, Alternate A,
Subcontractor Certified Cost or Pricing
Data.
• 252.215–70VV, Alternate A,
Subcontractor Certified Cost or Pricing
Data—Modifications.
• 252.215–70WW, Alternate A,
Requirements for Certified Cost or
Pricing Data and Data Other Than
Certified Cost or Pricing Data—
Modifications.
These new DFARS clauses are
designed for use with the FAR clauses
that are already in existing contracts.
These six DFARS clauses replace the
references to the TINA threshold in the
FAR clauses with the current, relevant
TINA threshold for DoD contracts.
Section 811(b) of the NDAA for FY
2018 requires offerors to submit data
other than certified cost or pricing data
upon contracting officer request.
Accordingly, DoD proposes to change
the solicitation provision at DFARS
252.215–7010, Requirements for
Certified Cost or Pricing Data and Data
Other Than Certified Cost or Pricing
Data, and its Alternate I to require that,
upon contracting officer request, the
offeror shall submit data other than
certified cost or pricing data to the
extent necessary to determine the
reasonableness of the price of the
contract or subcontract. Similarly, the
new clause at 252.215–70SS,
PO 00000
Frm 00004
Fmt 4701
Sfmt 4702
Requirements for Certified Cost or
Pricing Data and Data Other Than
Certified Cost or Pricing Data—
Modifications, and its Alternate I reflect
the same clarifying language.
III. Applicability to Contracts at or
Below the Simplified Acquisition
Threshold (SAT) and for Commercial
Services and Commercial Products,
Including Commercially Available Offthe-Shelf (COTS) Items
This rule proposes to amend the
solicitation provision at DFARS
252.215–7010, Requirements for
Certified Cost or Pricing Data and Data
Other Than Certified Cost or Pricing
Data, which already applies to
solicitations using FAR part 12
procedures for the acquisition of
commercial products and commercial
services. The changes to the solicitation
provision in this proposed rule,
however, do not impose any new
requirements on contracts at or below
the SAT or for commercial services and
commercial products, including COTS
items. The provision will continue not
to apply to acquisitions at or below the
SAT but will continue to apply to
acquisitions of commercial services and
commercial products, including COTS
items.
This proposed rule adds a new clause
at DFARS 252.215–70SS, Requirements
for Certified Cost or Pricing Data and
Data Other Than Certified Cost or
Pricing Data—Modifications, and its
Alternate I. The clause at DFARS
252.215–70SS is prescribed at DFARS
215.408(5)(ii) introductory text and
(5)(ii)(A) and (B) for use in lieu of the
clause at FAR 52.215–21, Requirements
for Certified Cost or Pricing Data and
Data Other Than Certified Cost or
Pricing Data—Modifications, in
solicitations and contracts, including
solicitations and contracts using FAR
part 12 procedures for the acquisition of
commercial products and commercial
services, if it is anticipated at the time
of solicitation that postaward
submission of certified cost or pricing
data or data other than certified cost or
pricing data may be required for prime
contract modifications. Alternate I is
prescribed when a format other than the
FAR Table 15–2 format may be used for
the certified cost or pricing data.
This proposed rule also includes new
clauses at DFARS 252.214–70QQ,
Alternate A, Price Reduction for
Defective Certified Cost or Pricing
Data—Modifications—Sealed Bidding;
252.214–70RR, Alternate A,
Subcontractor Certified Cost or Pricing
Data—Modifications—Sealed Bidding;
252.215–70TT, Alternate A, Price
Reduction for Defective Certified Cost or
E:\FR\FM\26SEP2.SGM
26SEP2
Federal Register / Vol. 89, No. 187 / Thursday, September 26, 2024 / Proposed Rules
Pricing Data—Modifications; 252.215–
70UU, Alternate A, Subcontractor
Certified Cost or Pricing Data; 252.215–
70VV, Alternate A, Subcontractor
Certified Cost or Pricing Data—
Modifications; and 252.215–70WW,
Alternate A, Requirements for Certified
Cost or Pricing Data and Data Other
Than Certified Cost or Pricing Data—
Modifications. These clauses are
prescribed for use with the respective
clauses at FAR 52.214–27, Price
Reduction for Defective Certified Cost or
Pricing Data—Modifications—Sealed
Bidding; FAR 52.214–28, Subcontractor
Certified Cost or Pricing Data—
Modifications—Sealed Bidding; 52.215–
11, Price Reduction for Defective
Certified Cost or Pricing Data—
Modifications; 52.215–12, Subcontractor
Certified Cost or Pricing Data; and
52.215–13, Subcontractor Certified Cost
or Pricing Data—Modifications; when,
in accordance with 10 U.S.C. 3702(f),
modifying a prime contract entered into
before July 1, 2018. Therefore, these
clauses are not appropriate for use in
new FAR part 12 solicitations and
contracts.
DoD does not intend to apply the
proposed rule to contracts at or below
the SAT. DoD does intend to apply the
proposed rule to contracts for the
acquisition of commercial services and
commercial products, including COTS
items.
khammond on DSKJM1Z7X2PROD with PROPOSALS2
A. Applicability to Contracts at or Below
the Simplified Acquisition Threshold
The statute at 41 U.S.C. 1905 governs
the applicability of laws to contracts or
subcontracts in amounts not greater
than the simplified acquisition
threshold. It is intended to limit the
applicability of laws to such contracts or
subcontracts. The statute at 41 U.S.C.
1905 provides that if a provision of law
contains criminal or civil penalties, or if
the Federal Acquisition Regulatory
Council makes a written determination
that it is not in the best interest of the
Federal Government to exempt contracts
or subcontracts at or below the SAT, the
law will apply to them. The Principal
Director, Defense Pricing, Contracting,
and Acquisition Policy (DPCAP), is the
appropriate authority to make
comparable determinations for
regulations to be published in the
DFARS, which is part of the FAR system
of regulations. DoD does not intend to
make that determination. Therefore, this
proposed rule will not apply at or below
the simplified acquisition threshold.
VerDate Sep<11>2014
17:16 Sep 25, 2024
Jkt 262001
B. Applicability to Contracts for the
Acquisition of Commercial Services and
Commercial Products, Including COTS
Items
The statute at 10 U.S.C. 3452 exempts
contracts and subcontracts for the
acquisition of commercial products,
including COTS items, and commercial
services from provisions of law enacted
after October 13, 1994, unless the Under
Secretary of Defense (Acquisition and
Sustainment) (USD(A&S)) makes a
written determination that it would not
be in the best interest of DoD to exempt
contracts for the procurement of
commercial products and commercial
services from the applicability of the
provision or contract requirement,
except for a provision of law that—
• Provides for criminal or civil
penalties;
• Requires that certain articles be
bought from American sources pursuant
to 10 U.S.C. 4862 (previously 10 U.S.C.
2533c), or that strategic materials
critical to national security be bought
from American sources pursuant to 10
U.S.C. 4863 (previously 10 U.S.C.
2533b); or
• Specifically refers to 10 U.S.C. 3452
and states that it shall apply to contracts
and subcontracts for the acquisition of
commercial products (including COTS
items) and commercial services.
The statutes implemented in this
proposed rule do not impose criminal or
civil penalties, do not require purchase
pursuant to 10 U.S.C. 4862 or 4863, and
do not refer to 10 U.S.C. 3452.
Therefore, section 811(b) of the NDAA
for FY 2018, section 814 of the NDAA
for FY 2021, and section 804 of the
NDAA for FY 2022 will not apply to the
acquisition of commercial services or
commercial products including COTS
items unless a written determination is
made. Due to delegations of authority,
the Principal Director, DPCAP is the
appropriate authority to make this
determination. DoD intends to make
that determination to apply these
statutes to the acquisition of commercial
products, including COTS items, and to
the acquisition of commercial services.
C. Determination
DFARS 252.215–7010, Requirements
for Certified Cost or Pricing Data and
Data Other Than Certified Cost or
Pricing Data, allows offerors to submit a
written request for an exception from
the requirement to submit certified cost
or pricing data, by submitting specific
information to support a commercial
product or commercial service
exception or an exception based on
prices set by law or regulation. As this
implies, DFARS 252.215–7010 is
PO 00000
Frm 00005
Fmt 4701
Sfmt 4702
79007
presently prescribed for use in
solicitations to include those using FAR
part 12 procedures for the acquisition of
commercial products and commercial
services. This proposed rule does not
include any changes to this
prescription.
The requirements of section 811(b) of
the NDAA for FY 2018, section 814 of
the NDAA for FY 2021, and section 804
of the NDAA for FY 2022 should apply
to the procurement of commercial
products, including COTS items, and to
the procurement of commercial services
for the following reasons.
Implementation of these sections
provides guidance concerning rendering
of commercial product and commercial
service determinations and the
appropriate amount and type of other
than certified cost or pricing
information that contracting officers
must require an offeror to submit in
order to determine whether proposed
prices for commercial products and
commercial services are fair and
reasonable. Exclusion of acquisitions of
commercial products, including COTS
items, and commercial services would
greatly limit the impact of the statutory
requirements and forestall the
opportunity to clarify commercial
product and commercial service
documentation, pricing criteria, and
requirements. For example,
implementing section 811(b) of the
NDAA for FY 2018 requires augmenting
DFARS 252.215–7010, which presently
applies to the acquisition of commercial
products and commercial services.
Section 804 of the NDAA for FY 2022
will be implemented in a proposed new
DFARS clause, 252.215–70SS, that is
applicable postaward in a manner
analogous to the solicitation provision
at DFARS 252.215–7010. The new
clause at 252.215–70SS must similarly
apply to the acquisition of commercial
products and commercial services. In
order to reflect congressional intent,
section 814 of the NDAA for FY 2021
must apply to the acquisition of
commercial products and commercial
services as a consequence of 252.215–
7010 applying to such acquisitions.
An exception for contracts for the
acquisition of commercial items,
including COTS items, would exclude
the contracts intended to be covered by
the law, thereby undermining the
overarching public policy purpose of
the law.
IV. Expected Impact of the Proposed
Rule
By increasing the TINA threshold for
contract modifications and subcontracts
to match that of contracts entered into
after June 30, 2018, this proposed rule,
E:\FR\FM\26SEP2.SGM
26SEP2
79008
Federal Register / Vol. 89, No. 187 / Thursday, September 26, 2024 / Proposed Rules
when finalized, will benefit both the
Government and the public. In
particular, by implementing a uniform
TINA threshold, this proposed rule will
promote efficiency and reduce costs
associated with administering contracts.
This proposed rule requires contractors
to provide data other than certified cost
or pricing data when certified cost or
pricing data is not required. Finally, this
proposed rule provides Government
contracting officers with the ability to
obtain data other than certified cost or
pricing data for contract modifications
analogous to what they can obtain when
issuing contracts. This data is critical for
determining fair and reasonable prices
when certified cost or pricing data is not
required. Adding this language should
expedite contract negotiations and
award.
khammond on DSKJM1Z7X2PROD with PROPOSALS2
V. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and
13563 direct agencies to assess all costs
and benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety
effects, distributive impacts, and
equity). E.O. 13563 emphasizes the
importance of quantifying both costs
and benefits, of reducing costs, of
harmonizing rules, and of promoting
flexibility. This is not a significant
regulatory action and, therefore, was not
subject to review under section 6(b) of
E.O. 12866, Regulatory Planning and
Review, as amended.
VI. Regulatory Flexibility Act
DoD does not expect this proposed
rule, when finalized, to have a
significant economic impact on a
substantial number of small entities
within the meaning of the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq.,
because the proposed rule does not add
to existing requirements for the
submission of other than certified cost
or pricing data for the purpose of
determining the reasonableness of
proposed prices; rather, the proposed
rule decreases the number of contracts
and subcontracts subject to TINA.
However, an initial regulatory flexibility
analysis has been performed and is
summarized as follows:
DoD is proposing to amend the
DFARS to implement the following:
section 811(b) of the National Defense
Authorization Act (NDAA) for Fiscal
Year (FY) 2018 (Pub. L. 115–91), section
814 of the NDAA for FY 2021 (Pub. L.
116–283), and section 804 of the NDAA
for FY 2022 (Pub. L. 117–81). Section
811(b) of the NDAA for FY 2018 (10
VerDate Sep<11>2014
17:16 Sep 25, 2024
Jkt 262001
U.S.C. 2306a(d), now 10 U.S.C. 3705(a))
requires offerors to submit data other
than certified cost or pricing data upon
contracting officer request. Section 814
of the NDAA for FY 2021 (10 U.S.C.
2306(a)(1), now 10 U.S.C. 3702(a)(2), (3),
and (4)) establishes a $2 million
threshold for the Truthful Cost or
Pricing Data (Truth in Negotiations)
statute (referred to as TINA)
requirements with respect to contract
modifications, subcontracts,
modifications to subcontracts. TINA
requires, with notable exceptions,
contractors to submit cost or pricing
data and to certify the accuracy of the
data, for the award of negotiated
contracts exceeding the $2 million
threshold. Section 804 of the NDAA for
FY 2022 augments the requirement at 10
U.S.C. 2306a(a)(6) (now 10 U.S.C.
3702(f)) for contracting officers to
modify contracts to reflect the relevant
TINA threshold. Section 804 requires
such modifications to be executed ‘‘as
soon as practicable.’’
The objective of this proposed rule is
to propose amendments to the DFARS
to implement the statutory changes
described above. The legal basis for the
proposed rule is section 811(b) of the
NDAA for FY 2018, section 814 of the
NDAA for FY 2021, and section 804 of
the NDAA for FY 2022.
Data was obtained from the Federal
Procurement Data System for new
awards valued over $2 million in FY
2019, FY 2020, and FY 2021. DoD
awarded an average of 10,593 contracts
per year during FY 2019 through FY
2021. Of those contracts, an average of
approximately 5,567 contracts were
awarded to 3,659 unique small entities
per year. By increasing the TINA
threshold for contract modifications and
subcontracts, this proposed rule will
benefit small businesses by reducing the
overall number of contracts to which
TINA requirements apply.
The proposed rule imposes new
reporting, recordkeeping, or compliance
requirements via proposed DFARS
clause 252.215–70SS, Requirements for
Certified Cost or Pricing Data and Data
Other Than Certified Cost or Pricing
Data—Modifications.
The proposed rule does not duplicate,
overlap, or conflict with any other
Federal rules.
There are no known alternatives that
would accomplish the stated objectives
of the applicable statutes.
DoD invites comments from small
business concerns and other interested
parties on the expected impact of this
proposed rule on small entities.
DoD will also consider comments
from small entities concerning the
existing regulations in subparts affected
PO 00000
Frm 00006
Fmt 4701
Sfmt 4702
by this proposed rule in accordance
with 5 U.S.C. 610. Interested parties
must submit such comments separately
and should cite 5 U.S.C. 610 (DFARS
Case 2022–D004), in correspondence.
VII. Paperwork Reduction Act
This proposed rule contains
information collection requirements that
require the approval of the Office of
Management and Budget (OMB) under
the Paperwork Reduction Act (44 U.S.C.
chapter 35). Accordingly, DoD has
submitted a request for approval of a
revised information collection
requirement concerning OMB Control
Number 0704–0574, titled ‘‘Defense
Federal Acquisition Regulation
Supplement (DFARS) Part 215; Only
One Offer and Related Clauses at
252.215,’’ to OMB.
A. Estimate of Public Burden
Public reporting burden for this
collection of information is estimated to
average 30 hours per response,
including the time for reviewing
instructions, searching existing data
sources, gathering and maintaining the
data needed, and completing and
reviewing the collection of information.
The annual reporting burden
estimated as follows:
Respondents: 1,247.
Total annual responses: 1,435.
Total annual burden hours: 50,190.
B. Request for Comments Regarding
Paperwork Burden
Written comments and
recommendations on the proposed
information collection, including
suggestions for reducing this burden,
should be submitted using the Federal
eRulemaking Portal at https://
www.regulations.gov or by email to
osd.dfars@mail.mil. Comments can be
received up to 60 days after the date of
this notice.
Public comments are particularly
invited on: whether this collection of
information is necessary for the proper
performance of the functions of DoD,
including whether the information will
have practical utility; the accuracy of
DoD’s estimate of the burden of this
information collection; ways to enhance
the quality, utility, and clarity of the
information to be collected; and ways to
minimize the burden of the information
collection on respondents, including
through the use of automated collection
techniques or other forms of information
technology.
To obtain a copy of the supporting
statement and associated collection
instruments, please email osd.dfars@
mail.mil. Include DFARS Case 2022–
D004 in the subject line of the message.
E:\FR\FM\26SEP2.SGM
26SEP2
Federal Register / Vol. 89, No. 187 / Thursday, September 26, 2024 / Proposed Rules
214.201–7
List of Subjects in 48 CFR Parts 212,
214, 215, and 252
Government procurement.
Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition
Regulations System.
Therefore, the Defense Acquisition
Regulations System proposes to amend
48 CFR parts 212, 214, 215, and 252
amended as follows:
■ 1. The authority citation for 48 CFR
parts 212, 214, 215, and 252 continues
to read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR
chapter 1.
PART 212—ACQUISITION OF
COMMERCIAL PRODUCTS AND
COMMERCIAL SERVICES
2. Amend section 212.301 by revising
paragraph (f)(vi)(E) introductory text
and adding paragraph (f)(vi)(G) to read
as follows:
■
Contract clauses.
(b)(1) When modifying a contract
entered into before July 1, 2018, in
accordance with 215.403–4(a)(3), use
the clause at FAR 52.214–27, Price
Reduction for Defective Certified Cost or
Pricing Data—Modifications—Sealed
Bidding, with 252.214–70QQ, Alternate
A, Price Reduction for Defective
Certified Cost or Pricing Data—
Modifications—Sealed Bidding.
(c)(1)(ii) When modifying a contract
entered into before July 1, 2018, in
accordance with 215.403–4(a)(3), use
the clause at FAR 52.214–28,
Subcontractor Certified Cost or Pricing
Data—Modifications—Sealed Bidding,
with 252.214–70RR, Alternate A,
Subcontractor Certified Cost or Pricing
Data—Modifications—Sealed Bidding.
Do not use alternate I of the clause at
FAR 52.214–28.
PART 215—CONTRACTING BY
NEGOTIATION
5. Add section 215.403–4 to read as
follows:
■
212.301 Solicitation provisions and
contract clauses for the acquisition of
commercial products and commercial
services.
*
*
*
*
*
(f) * * *
(vi) * * *
(E) Use the provision 252.215–7010,
Requirements for Certified Cost or
Pricing Data and Data Other Than
Certified Cost or Pricing Data, as
prescribed at 215.408(5)(i) to comply
with section 831 of the National Defense
Authorization Act for Fiscal Year 2013
(Pub. L. 112–239) and 10 U.S.C. 3702(a),
3703(d) and (e), and 3705(a).
*
*
*
*
*
(G) Use the clause at 252.215–70SS,
Requirements for Certified Cost or
Pricing Data and Data Other Than
Certified Cost or Pricing Data—
Modifications, as prescribed at
215.408(5)(ii) to comply with section
831 of the National Defense
Authorization Act for Fiscal Year 2013
(Pub. L. 112–239) and 10 U.S.C. 3702(a),
3703(d) and (e), and 3705(a).
*
*
*
*
*
(a)(1) Notwithstanding FAR 15.403–
4(a)(1), the $2 million threshold for
obtaining certified cost or pricing data
applies to contract modifications,
subcontracts, and subcontract
modifications, regardless of when the
prime contract was awarded.
(3) For a contract entered into before
July 1, 2018, the contracting officer shall
modify the contract as soon as
practicable, without requiring
consideration, to reflect the threshold at
paragraph (a)(1) for obtaining certified
cost or pricing data on contract
modifications and subcontracts entered
into on or after July 1, 2018 (10 U.S.C.
3702(f)). See 214.201–7 and 215.408.
■ 6. Amend section 215.408—
■ a. By redesignating paragraphs (5)(ii)
and (iii) as paragraphs (5)(iii) and (iv);
and
■ b. By adding a new paragraph (5)(ii)
and paragraph (9).
The additions read as follows:
PART 214—SEALED BIDDING
215.408 Solicitation provisions and
contract clauses.
3. Revise section 214.201–6 to read as
follows:
*
■
khammond on DSKJM1Z7X2PROD with PROPOSALS2
215.403–4 Requiring certified cost or
pricing data (10 U.S.C. chapter 271 and 41
U.S.C. chapter 35).
214.201–6
Solicitation provisions.
Use the provisions at 252.215–7007,
Notice of Intent to Resolicit, and
252.215–7008, Only One Offer, as
prescribed at 215.371–6 and 215.408(3),
respectively.
■ 4. Add section 214.201–7 to read as
follows:
VerDate Sep<11>2014
17:16 Sep 25, 2024
Jkt 262001
*
*
*
*
(5) * * *
(ii) Use the basic or alternate of the
clause at 252.215–70SS, Requirements
for Certified Cost or Pricing Data and
Data Other Than Certified Cost or
Pricing Data—Modifications, in lieu of
the clause at FAR 52.215–21,
Requirements for Certified Cost or
Pricing Data and Data Other Than
Certified Cost or Pricing Data—
PO 00000
Frm 00007
Fmt 4701
Sfmt 4702
79009
Modifications, in solicitations and
contracts, including solicitations and
contracts using FAR part 12 procedures
for the acquisition of commercial
products and commercial services, if it
is reasonably certain that certified cost
or pricing data or data other than
certified cost or pricing data will be
required for modifications.
(A) Use the basic clause when
submission of certified cost or pricing
data is required to be in the FAR Table
15–2 format.
(B) Use the alternate I clause to
specify a format for certified cost or
pricing data other than the format
required by FAR Table 15–2.
*
*
*
*
*
(9) When modifying a prime contract
entered into before July 1, 2018, in
accordance with 215.403–4(a)(3)—
(i) Use the clause at FAR 52.215–11,
Price Reduction for Defective Certified
Cost or Pricing Data—Modifications,
with 252.215–70TT, Alternate A, Price
Reduction for Defective Certified Cost or
Pricing Data—Modifications.
(ii)(A) Use the clause at FAR 52.215–
12, Subcontractor Certified Cost or
Pricing Data, with 252.215–70UU,
Alternate A, Subcontractor Certified
Cost or Pricing Data.
(B) Do not use alternate I of the clause
at FAR 52.215–12.
(iii)(A) Use the clause at FAR 52.215–
13, Subcontractor Certified Cost or
Pricing Data—Modifications, with
252.215–70VV, Alternate A,
Subcontractor Certified Cost or Pricing
Data—Modifications.
(B) Do not use alternate I of the clause
at FAR 52.215–13.
(iv) Use the clause at 52.215–21,
Requirements for Certified Cost or
Pricing Data and Data Other Than
Certified Cost or Pricing Data—
Modifications, with 252.215–70WW,
Alternate A, Requirements for Certified
Cost or Pricing Data and Data Other
Than Certified Cost or Pricing Data—
Modifications.
PART 252—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
7. Add section 252.214–70QQ to read
as follows:
■
252.214–70QQ Alternate A, Price
Reduction for Defective Certified Cost or
Pricing Data—Modifications—Sealed
Bidding.
As prescribed in 214.201–7(b)(1), use
the following clause:
E:\FR\FM\26SEP2.SGM
26SEP2
79010
Federal Register / Vol. 89, No. 187 / Thursday, September 26, 2024 / Proposed Rules
Alternate A, Price Reduction for
Defective Certified Cost or Pricing
Data—Modifications—Sealed Bidding
(Date)
Substitute ‘‘215.403–4(a)(1) of the Defense
Federal Acquisition Regulation Supplement’’
for references to 15.403–4(a)(1) of the Federal
Acquisition Regulation wherever they appear
in the clause at 52.214–27, Price Reduction
for Defective Certified Cost or Pricing Data—
Modifications—Sealed Bidding.
(End of clause)
■ 8. Add section 252.214–70RR to read
as follows:
252.214–70RR Alternate A, Subcontractor
Certified Cost or Pricing Data—
Modifications—Sealed Bidding.
As prescribed in 214.201–7(c)(1)(ii),
use the following clause:
Alternate A, Subcontractor Certified
Cost or Pricing Data—Modifications—
Sealed Bidding (Date)
khammond on DSKJM1Z7X2PROD with PROPOSALS2
Substitute ‘‘215.403–4(a)(1) of the Defense
Federal Acquisition Regulation Supplement’’
for references to 15.403–4(a)(1) of the Federal
Acquisition Regulation wherever they appear
in the clause at 52.214–28, Subcontractor
Certified Cost or Pricing Data—
Modifications—Sealed Bidding.
(End of clause)
■ 9. Amend section 252.215–7010—
■ a. By removing the provision date of
‘‘(MAY 2024)’’ and adding ‘‘(DATE)’’ in
its place;
■ b. By revising paragraph (b)(1)(ii)(C);
■ c. In paragraph (b)(1)(ii)(D) by
removing ‘‘items’’ and ‘‘the DoD’’ and
adding ‘‘products or services’’ and
‘‘DoD’’ in their places, respectively;
■ d. In paragraphs (b)(1)(ii)(E) and (F) by
removing ‘‘items’’ and adding ‘‘products
or services’’ in its place;
■ e. By revising paragraph (c)(3);
■ f. By redesignating paragraphs (d)(1)
through (5) as paragraphs (d)(2) through
(6);
■ g. By adding a new paragraph (d)(1);
■ h. In newly redesignated paragraph
(d)(5) by removing ‘‘FAR 15.403–3’’ and
adding ‘‘this paragraph (d)’’ in its place;
■ i. In paragraph (e)(1) by removing
‘‘FAR 15.403–4’’ and adding ‘‘DFARS
215.403–4(a)(1)’’ in its place; and
■ j. In Alternate I—
■ i. By removing the provision date of
‘‘(MAY 2024)’’ and adding ‘‘(DATE)’’ in
its place;
■ ii. By revising paragraph (b)(1)(ii)(C);
■ iii. In paragraph (b)(1)(ii)(D) by
removing ‘‘items’’ and ‘‘the DoD’’ and
adding ‘‘products or services’’ and
‘‘DoD’’ in their places, respectively;
■ iv. In paragraph (b)(1)(ii)(E) by
removing ‘‘items’’ and adding ‘‘products
or services’’ in its place;
■ v. By revising paragraphs (b)(1)(ii)(F)
and (c)(3);
VerDate Sep<11>2014
17:16 Sep 25, 2024
Jkt 262001
vi. By redesignating paragraphs (d)(1)
through (6) as paragraphs (d)(2) through
(7);
■ vii. By adding a new paragraph (d)(1);
■ viii. By revising newly redesignated
paragraph (d)(6); and
■ ix. In paragraph (e)(1) by removing
‘‘FAR 15.403–4’’ and adding ‘‘DFARS
215.403–4(a)(1)’’ in its place.
The revisions and additions read as
follows:
■
252.215–7010 Requirements for Certified
Cost or Pricing Data and Data Other Than
Certified Cost or Pricing Data.
*
*
*
*
*
(b) * * *
(1) * * *
(ii) * * *
(C) For products or services priced
based on a catalog—
(1) A copy of or identification of the
Offeror’s current catalog showing the
price for that product or service; and
(2) If the catalog pricing provided
with this proposal is not supported by
all relevant sales data, a detailed
description of differences or
inconsistencies between or among the
relevant sales data, the proposed price,
and the catalog price (including any
related discounts, refunds, rebates,
offsets, or other adjustments);
*
*
*
*
*
(c) * * *
(3) The Offeror is responsible for
determining whether a subcontractor
qualifies for an exception from the
requirement for submission of certified
cost or pricing data on the basis of
adequate price competition in
accordance with FAR 15.403–1(c)(1)(i).
(d) * * *
(1) When certified cost or pricing data
are not required to be submitted under
this provision, the Offeror shall submit
data other than certified cost or pricing
data to the extent necessary to
determine the reasonableness of the
price of the contract or subcontract,
when requested by the Contracting
Officer.
*
*
*
*
*
Alternate I. * * *
(b) * * *
(1) * * *
(ii) * * *
(C) For products or services priced
based on a catalog—
(1) A copy of or identification of the
Offeror’s current catalog showing the
price for that product or service; and
(2) If the catalog pricing provided
with this proposal is not supported by
all relevant sales data, a detailed
description of differences or
inconsistencies between or among the
relevant sales data, the proposed price,
and the catalog price (including any
PO 00000
Frm 00008
Fmt 4701
Sfmt 4702
related discounts, refunds, rebates,
offsets, or other adjustments);
*
*
*
*
*
(F) For products or services provided
by nontraditional defense contractors, a
statement that the entity is not currently
performing and has not performed, for
at least the 1-year period preceding the
solicitation of sources by DoD for the
procurement or transaction, any
contract or subcontract for DoD that is
subject to full coverage under the cost
accounting standards prescribed
pursuant to 41 U.S.C. 1502 and the
regulations implementing such section.
*
*
*
*
*
(c) * * *
(3) The Offeror is responsible for
determining whether a subcontractor
qualifies for an exception from the
requirement for submission of certified
cost or pricing data on the basis of
adequate price competition in
accordance with FAR 15.403–1(c)(1)(i).
(d) * * *
(1) When certified cost or pricing data
are not required to be submitted under
this provision, the Offeror shall submit
data other than certified cost or pricing
data to the extent necessary to
determine the reasonableness of the
price of the contract or subcontract,
when requested by the Contracting
Officer.
*
*
*
*
*
(5) Within 10 days of a written request
from the Contracting Officer for
additional information to permit an
adequate evaluation of the proposed
price in accordance with this paragraph
(d), the Offeror shall provide either the
requested information, or a written
explanation for the inability to fully
comply.
*
*
*
*
*
■ 10. Add section 252.215–70SS to read
as follows:
252.215–70SS Requirements for Certified
Cost or Pricing Data and Data Other Than
Certified Cost or Pricing Data—
Modifications.
As prescribed in 215.408(5)(ii) and
(5)(ii)(A), use the following basic clause:
Requirements for Certified Cost or
Pricing Data and Data Other Than
Certified Cost or Pricing Data—
Modifications—Basic (DATE)
(a) Definitions. As used in this clause—
Market prices means current prices that are
established in the course of ordinary trade
between buyers and sellers free to bargain
and that can be substantiated through
competition or from sources independent of
the offeror, contractor, or subcontractor.
Non-Government sales means sales of the
supplies or services to non-Governmental
entities for purposes other than governmental
purposes.
E:\FR\FM\26SEP2.SGM
26SEP2
khammond on DSKJM1Z7X2PROD with PROPOSALS2
Federal Register / Vol. 89, No. 187 / Thursday, September 26, 2024 / Proposed Rules
Relevant sales data means information
provided by an offeror, contractor, or
subcontractor on sales of the same or similar
items that can be used to establish price
reasonableness taking into consideration the
age, volume, and nature of the transactions
(including any related discounts, refunds,
rebates, offsets, or other adjustments).
Sufficient non-Government sales means
relevant sales data that reflects market
pricing and contains enough information to
make adjustments covered by Federal
Acquisition Regulation (FAR) 15.404–
1(b)(2)(ii)(B).
Uncertified cost data means the subset of
‘‘data other than certified cost or pricing
data’’ (see FAR 2.101) that relates to cost.
(b) Exceptions from certified cost or pricing
data.
(1) In lieu of submitting certified cost or
pricing data for modifications under this
contract, for price adjustments expected to
exceed the threshold set forth in Defense
Federal Acquisition Regulation Supplement
(DFARS) 215.403–4(a)(1), the Contractor may
submit a written request for exception by
submitting the information described in
paragraphs (b)(1)(i) and (ii) of this clause.
The Contracting Officer may require
additional supporting information, but only
to the extent necessary to determine whether
an exception should be granted and whether
the price is fair and reasonable.
(i) Exception for prices set by law or
regulation—Identification of the law or
regulation establishing the prices offered. If
the prices are controlled under law by
periodic rulings, reviews, or similar actions
of a governmental body, provide a copy of
the controlling document, unless it was
previously submitted to the contracting
office.
(ii) Commercial product and commercial
service exception. For a commercial product
or commercial service exception, the
Contractor shall submit, at a minimum,
information that is adequate for evaluating
the reasonableness of the price for this
modification, including prices at which the
same or similar products or services have
been sold in the commercial market. The
Contractor may provide information
establishing that the proposed modification
would not change the existing contract or
subcontract from a contract or subcontract for
a commercial product or commercial service
to one for other than a commercial product
or service. Such information shall include—
(A) For products or services previously
determined to be commercial, the contract
number and military department, defense
agency, or other DoD component that
rendered such determination and, if
available, a Government point of contact;
(B) For products or services priced based
on a catalog—
(1) A copy of or identification of the
Contractor’s current catalog showing the
price for that product or service; and
(2) If the catalog pricing provided with this
proposal is not supported by all relevant
sales data, a detailed description of
differences or inconsistencies between or
among the relevant sales data, the proposed
price, and the catalog price, including any
related discounts, refunds, rebates, offsets, or
other adjustments;
VerDate Sep<11>2014
17:16 Sep 25, 2024
Jkt 262001
(C) For products or services priced based
on market pricing, a description of the nature
of the commercial market, the methodology
used to establish a market price, and all
relevant sales data. The description shall be
adequate to permit DoD to verify the
accuracy of the description;
(D) For products or services included on an
active Federal Supply Service Multiple
Award Schedule contract, proof that an
exception has been granted for the schedule
products or services; or
(E) For products or services provided by
nontraditional defense contractors, a
statement that the entity is not currently
performing and has not performed, for at
least the 1-year period preceding the
solicitation of sources by DoD for the
procurement, any contract or subcontract for
DoD that is subject to full coverage under the
cost accounting standards prescribed
pursuant to 41 U.S.C. 1502 and the
regulations implementing such section.
(2) The Contractor grants the Contracting
Officer or an authorized representative the
right to examine, at any time before award,
books, records, documents, or other directly
pertinent records to verify any request for an
exception under this clause, and to
determine the reasonableness of price.
(c) Requirements for certified cost or
pricing data. If the Contractor is not granted
an exception from the requirement to submit
certified cost or pricing data, the following
applies:
(1) The Contractor shall prepare and
submit certified cost or pricing data and
supporting attachments in accordance with
the instructions contained in Table 15–2 of
FAR 15.408, which is incorporated by
reference with the same force and effect as
though it were inserted here in full text. The
instructions in Table 15–2 are incorporated
as a mandatory format to be used in this
contract, unless the Contracting Officer and
the Contractor agree to a different format and
replace this clause with Alternate I of
252.215–70SS.
(2) As soon as practicable after agreement
on price, but before award of the
modification, the Contractor shall submit a
Certificate of Current Cost or Pricing Data, as
prescribed by FAR 15.406–2.
(3) The Contractor is responsible for
determining whether a subcontractor
qualifies for an exception from the
requirement for submission of certified cost
or pricing data on the basis of adequate price
competition in accordance with FAR 15.403–
1(c)(1)(i).
(d) Requirements for data other than
certified cost or pricing data.
(1) When certified cost or pricing data are
not required to be submitted under this
clause for a contract or subcontract, the
Contractor shall submit data other than
certified cost or pricing data to the extent
necessary to determine the reasonableness of
the price of the contract or subcontract when
requested by the Contracting Officer.
(2) Data other than certified cost or pricing
data submitted in accordance with this
clause shall include the minimum
information necessary to permit a
determination that the proposed price is fair
and reasonable, to include the requirements
in DFARS 215.402(a)(i) and 215.404–1(b).
PO 00000
Frm 00009
Fmt 4701
Sfmt 4702
79011
(3) In cases in which uncertified cost data
is required, the information shall be provided
in the form in which it is regularly
maintained by the Contractor, subcontractor,
or prospective subcontractor in its business
operations.
(4) Within 10 days of a written request
from the Contracting Officer for additional
information to permit an adequate evaluation
of the proposed price in accordance with this
paragraph, the Contractor shall provide either
the requested information or a written
explanation for the inability to fully comply.
(e) Subcontract price evaluation.
(1) Contractors shall obtain from
subcontractors the minimum information
necessary to support a determination of price
reasonableness, as described in FAR part 15
and DFARS part 215.
(2) No cost data may be required from a
current or prospective subcontractor in any
case in which there are sufficient nonGovernment sales of the same item to
establish reasonableness of price.
(3) If the Contractor relies on relevant sales
data for similar items to determine the price
is reasonable, the Contractor shall obtain
only that technical information necessary
to—
(i) Support the conclusion that items are
technically similar; and
(ii) Explain any technical differences that
account for variances between the proposed
prices and the sales data presented.
(f) Subcontracts. The Contractor shall
insert the substance of this clause, including
this paragraph (f), in subcontracts exceeding
the simplified acquisition threshold defined
in FAR part 2. The Contractor shall require
subcontractors and prospective
subcontractors to adhere to the requirements
of—
(1) Paragraphs (c) and (d) of this clause for
subcontracts above the threshold for
submission of certified cost or pricing data in
DFARS 215.403–4(a)(1); and
(2) Paragraph (d) of this clause for
subcontracts exceeding the simplified
acquisition threshold defined in FAR part 2.
(End of clause)
Alternate I. As prescribed in 215.408(5)(ii)
and (5)(ii)(B), use the following clause, which
includes a different paragraph (c)(1) than the
basic clause and amends paragraph (d) by
redesignating paragraph (d)(4) of the basic
clause as (d)(5) and adding a new paragraph
(d)(4).
Requirements for Certified Cost or Pricing
Data and Data Other Than Certified Cost or
Pricing Data—Modifications—Alternate I
(DATE)
(a) Definitions. As used in this clause—
Market prices means current prices that are
established in the course of ordinary trade
between buyers and sellers free to bargain
and that can be substantiated through
competition or from sources independent of
the offeror, contractor, or subcontractor.
Non-Government sales means sales of the
supplies or services to non-Governmental
entities for purposes other than governmental
purposes.
Relevant sales data means information
provided by an offeror, contractor, or
subcontractor on sales of the same or similar
E:\FR\FM\26SEP2.SGM
26SEP2
khammond on DSKJM1Z7X2PROD with PROPOSALS2
79012
Federal Register / Vol. 89, No. 187 / Thursday, September 26, 2024 / Proposed Rules
items that can be used to establish price
reasonableness taking into consideration the
age, volume, and nature of the transactions
(including any related discounts, refunds,
rebates, offsets, or other adjustments).
Sufficient non-Government sales means
relevant sales data that reflects market
pricing and contains enough information to
make adjustments covered by Federal
Acquisition Regulation (FAR) 15.404–
1(b)(2)(ii)(B).
Uncertified cost data means the subset of
‘‘data other than certified cost or pricing
data’’ (see FAR 2.101) that relates to cost.
(b) Exceptions from certified cost or pricing
data.
(1) In lieu of submitting certified cost or
pricing data for modifications under this
contract, for price adjustments expected to
exceed the threshold set forth in Defense
Federal Acquisition Regulation Supplement
(DFARS) 215.403–4(a)(1), the Contractor may
submit a written request for exception by
submitting the information described in
paragraphs (b)(1)(i) and (ii) of this clause.
The Contracting Officer may require
additional supporting information, but only
to the extent necessary to determine whether
an exception should be granted and whether
the price is fair and reasonable.
(i) Exception for prices set by law or
regulation—Identification of the law or
regulation establishing the prices offered. If
the price is controlled under law by periodic
rulings, reviews, or similar actions of a
governmental body, provide a copy of the
controlling document, unless it was
previously submitted to the contracting
office.
(ii) Commercial product and commercial
service exception. For a commercial product
or commercial service exception, the
Contractor shall submit, at a minimum,
information that is adequate for evaluating
the reasonableness of the price for this
modification, including prices at which the
same or similar products or services have
been sold in the commercial market. The
Contractor may provide information
establishing that the proposed modification
would not change the existing contract or
subcontract from a contract or subcontract for
a commercial product or commercial service
to one for other than a commercial product
or service. Such information shall include—
(A) For products or services previously
determined to be commercial, the contract
number and military department, defense
agency, or other DoD component that
rendered such determination and, if
available, a Government point of contact;
(B) For products or services priced based
on a catalog—
(1) A copy of or identification of the
Contractor’s current catalog showing the
price for that product or service; and
(2) If the catalog pricing provided with this
proposal is not supported by all relevant
sales data, a detailed description of
differences or inconsistencies between or
among the relevant sales data, the proposed
price, and the catalog price, including any
related discounts, refunds, rebates, offsets, or
other adjustments;
(C) For products or services priced based
on market pricing, a description of the nature
VerDate Sep<11>2014
17:16 Sep 25, 2024
Jkt 262001
of the commercial market, the methodology
used to establish a market price, and all
relevant sales data. The description shall be
adequate to permit DoD to verify the
accuracy of the description;
(D) For products or services included on an
active Federal Supply Service Multiple
Award Schedule contract, proof that an
exception has been granted for the schedule
products or services; or
(E) For products or services provided by
nontraditional defense contractors, a
statement that the entity is not currently
performing and has not performed, for at
least the 1-year period preceding the
solicitation of sources by DoD for the
procurement, any contract or subcontract for
DoD that is subject to full coverage under the
cost accounting standards prescribed
pursuant to 41 U.S.C. 1502 and the
regulations implementing such section.
(2) The Contractor grants the Contracting
Officer or an authorized representative the
right to examine, at any time before award,
books, records, documents, or other directly
pertinent records to verify any request for an
exception under this clause, and to
determine the reasonableness of price.
(c) Requirements for certified cost or
pricing data. If the Contractor is not granted
an exception from the requirement to submit
certified cost or pricing data, the following
applies:
(1) The Contractor shall submit certified
cost or pricing data and supporting
attachments in the following format:
[Contracting officer insert description of the
data and format that are required, and
include access to records necessary to permit
an adequate evaluation of the proposed price
in accordance with FAR 15.408, Table 15–2,
Note 2. The Contracting Officer shall insert
the description at the time of issuing the
solicitation or specify that the format
regularly maintained by the Contractor or
current or prospective subcontractor in its
business operations will be acceptable. The
Contracting Officer may amend the
description as the result of negotiations.]
(2) As soon as practicable after agreement
on price, but before award of the
modification, the Contractor shall submit a
Certificate of Current Cost or Pricing Data, as
prescribed by FAR 15.406–2.
(3) The Contractor is responsible for
determining whether a subcontractor
qualifies for an exception from the
requirement for submission of certified cost
or pricing data on the basis of adequate price
competition in accordance with FAR 15.403–
1(c)(1)(i).
(d) Requirements for data other than
certified cost or pricing data.
(1) When certified cost or pricing data are
not required to be submitted under this
clause for a contract or subcontract, the
Contractor shall submit data other than
certified cost or pricing data to the extent
necessary to determine the reasonableness of
the price of the contract or subcontract when
requested by the Contracting Officer.
(2) Data other than certified cost or pricing
data submitted in accordance with this
clause shall include the minimum
information necessary to permit a
determination that the proposed price is fair
PO 00000
Frm 00010
Fmt 4701
Sfmt 4702
and reasonable, to include the requirements
in DFARS 215.402(a)(i) and 215.404–1(b).
(3) In cases in which uncertified cost data
is required, the information shall be provided
in the form in which it is regularly
maintained by the Contractor, subcontractor,
or prospective subcontractor in its business
operations.
(4) The Contractor shall provide
information described as follows: [Insert
description of the data and the format that
are required upon request, including access
to records necessary to permit an adequate
evaluation of the proposed price in
accordance with FAR 15.403–3].
(5) Within 10 days of a written request
from the Contracting Officer for additional
information to permit an adequate evaluation
of the proposed price in accordance with this
paragraph, the Contractor shall provide either
the requested information or a written
explanation for the inability to fully comply.
(e) Subcontract price evaluation.
(1) The Contractor shall obtain from
subcontractors the information necessary to
support a determination of price
reasonableness, as described in FAR part 15
and DFARS part 215.
(2) No cost data may be required from a
current or prospective subcontractor in any
case in which there are sufficient nonGovernment sales of the same item to
establish reasonableness of price.
(3) If the Contractor relies on relevant sales
data for similar items to determine the price
is reasonable, the Contractor shall obtain
only that technical information necessary
to—
(i) Support the conclusion that items are
technically similar; and
(ii) Explain any technical differences that
account for variances between the proposed
prices and the sales data presented.
(f) Subcontracts. The Contractor shall
insert the substance of this clause, including
this paragraph (f), in subcontracts exceeding
the simplified acquisition threshold defined
in FAR part 2. The Contractor shall require
subcontractors and prospective
subcontractors to adhere to the requirements
of—
(1) Paragraphs (c) and (d) of this clause for
subcontracts above the threshold for
submission of certified cost or pricing data in
DFARS 215.403–4(a)(1); and
(2) Paragraph (d) of this clause for
subcontracts exceeding the simplified
acquisition threshold defined in FAR part 2.
(End of clause)
■ 11. Add sections 252.215–70TT,
252.215–70UU, 252.215–70VV, and
252.215–70WW to read as follows:
*
*
*
*
*
Sec.
252.215–70TT Alternate A, Price Reduction
for Defective Certified Cost or Pricing
Data—Modifications.
252.215–70UU Alternate A, Subcontractor
Certified Cost or Pricing Data.
252.215–70VV Alternate A, Subcontractor
Certified Cost or Pricing Data—
Modifications.
252.215–70WW Alternate A, Requirements
for Certified Cost or Pricing Data and
E:\FR\FM\26SEP2.SGM
26SEP2
Federal Register / Vol. 89, No. 187 / Thursday, September 26, 2024 / Proposed Rules
Data Other Than Certified Cost or Pricing
Data—Modifications.
*
*
*
*
*
252.215–70TT Alternate A, Price Reduction
for Defective Certified Cost or Pricing
Data—Modifications.
Certified Cost or Pricing Data and Data Other
Than Certified Cost or Pricing Data—
Modifications.
FOR FURTHER INFORMATION CONTACT:
(End of clause)
I. Background
DoD is proposing to revise the DFARS
to implement section 812 of the
National Defense Authorization Act
(NDAA) for Fiscal Year (FY) 2024 (Pub.
L. 118–31). Section 812 prohibits
contracting officers from awarding
contracts assigned a North American
Industry Classification System (NAICS)
code beginning with 5416 to offerors
who hold contracts that involve
consulting services with certain covered
foreign entities. NAICS codes beginning
with 5416 are for management,
scientific, and technical consulting
services. Section 812 allows an offeror
to submit a conflict-of-interest
mitigation plan and allows the
prohibition to be waived under certain
circumstances.
[FR Doc. 2024–21098 Filed 9–25–24; 8:45 am]
BILLING CODE 6820–FR–P
As prescribed in 215.408(9)(i), use the
following clause:
DEPARTMENT OF DEFENSE
Alternate A, Price Reduction for
Defective Certified Cost or Pricing
Data—Modifications (DATE)
Defense Acquisition Regulations
System
Substitute ‘‘215.403–4(a)(1) of the Defense
Federal Acquisition Regulation Supplement’’
for references to 15.403–4(a)(1) of the Federal
Acquisition Regulation wherever they appear
in the clause at 52.215–11, Price Reduction
for Defective Certified Cost or Pricing Data—
Modifications.
(End of clause)
252.215–70UU Alternate A, Subcontractor
Certified Cost or Pricing Data.
As prescribed in 215.408(9)(ii), use
the following clause:
Substitute ‘‘215.403–4(a)(1) of the Defense
Federal Acquisition Regulation Supplement’’
for references to 15.403–4(a)(1) of the Federal
Acquisition Regulation wherever they appear
in the clause at 52.215–12, Subcontractor
Certified Cost or Pricing Data.
(End of clause)
252.215–70VV Alternate A, Subcontractor
Certified Cost or Pricing Data—
Modifications.
As prescribed in 215.408(9)(iii), use
the following clause:
Alternate A, Subcontractor Certified
Cost or Pricing Data—Modifications
(DATE)
Substitute ‘‘215.403–4(a)(1) of the Defense
Federal Acquisition Regulation Supplement’’
for references to 15.403–4(a)(1) of the Federal
Acquisition Regulation wherever they appear
in the clause at 52.215–13, Subcontractor
Certified Cost or Pricing Data—
Modifications.
(End of clause)
252.215–70WW Alternate A, Requirements
for Certified Cost or Pricing Data and Data
Other Than Certified Cost or Pricing Data—
Modifications.
khammond on DSKJM1Z7X2PROD with PROPOSALS2
As prescribed in 215.408(9)(iv), use
the following clause:
Alternate A, Requirements for Certified
Cost or Pricing Data and Data Other
Than Certified Cost or Pricing Data—
Modifications (DATE)
Substitute ‘‘215.403–4(a)(1) of the Defense
Federal Acquisition Regulation Supplement’’
for references to 15.403–4(a)(1) of the Federal
Acquisition Regulation wherever they appear
in the clause at 52.215–21, Requirements for
VerDate Sep<11>2014
17:16 Sep 25, 2024
Jkt 262001
48 CFR Parts 209, 212, 237, and 252
[Docket DARS–2024–0029]
RIN 0750–AM04
Defense Federal Acquisition
Regulation Supplement: Preventing
Conflicts of Interest for Certain
Consulting Services (DFARS Case
2024–D007)
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Proposed rule.
AGENCY:
Alternate A, Subcontractor Certified
Cost or Pricing Data (DATE)
79013
DoD is proposing to amend
the Defense Federal Acquisition
Regulation Supplement (DFARS) to
implement a section of the National
Defense Authorization Act for Fiscal
Year 2024 that prohibits contracting
officers from awarding contracts
assigned certain North American
Industry Classification System codes to
offerors that hold contracts that involve
consulting services with certain covered
foreign entities.
DATES: Comments on the proposed rule
should be submitted in writing to the
address shown below on or before
November 25, 2024, to be considered in
the formation of a final rule.
ADDRESSES: Submit comments
identified by DFARS Case 2024–D007,
using either of the following methods:
Æ Federal eRulemaking Portal:
https://www.regulations.gov. Search for
DFARS Case 2024–D007. Select
‘‘Comment’’ and follow the instructions
to submit a comment. Please include
‘‘DFARS Case 2024–D007’’ on any
attached documents.
Æ Email: osd.dfars@mail.mil. Include
DFARS Case 2024–D007 in the subject
line of the message.
Comments received generally will be
posted without change to https://
www.regulations.gov, including any
personal information provided. To
confirm receipt of your comment(s),
please check https://
www.regulations.gov, approximately
two to three days after submission to
verify posting.
SUMMARY:
PO 00000
Frm 00011
Fmt 4701
Sfmt 4702
Mr.
Jon Snyder, telephone 703–945–5341.
SUPPLEMENTARY INFORMATION:
II. Discussion and Analysis
This proposed rule includes a new
section 209.57X, Conflicts of Interest in
Certain Consulting Services, to
implement section 812 of the NDAA for
FY 2024. This new section 209.57X
provides contracting officers the scope,
definitions, prohibition, and waiver
procedures for conflicts of interest in
consulting services. DFARS 209.57X(c)
prohibits contracting officers from
awarding contracts assigned a NAICS
code beginning with 5416 to an offeror
that holds a contract for consulting
services with one or more covered
foreign entities if the offeror does not
have an approved conflict-of-interest
mitigation plan. DFARS 209.57X(b)
contains the definitions of ‘‘consulting
services’’, ‘‘contract oversight entity’’,
‘‘covered contract’’, and ‘‘covered
foreign entity’’. The proposed rule also
includes DFARS 209.503–70, which
specifies the waiver authority for the
prohibition at 209.57X(c).
A new solicitation provision is
proposed at DFARS 252.209–70XX,
Prohibition Relating to Conflicts of
Interest in Consulting Services—
Certification, for use in solicitations
assigned a NAICS code beginning with
5416 that involve consulting services,
including solicitations using Federal
Acquisition Regulation (FAR) part 12
procedures for the acquisition of
commercial services. DFARS 252.209–
70XX requires an offeror to certify
whether or not the offeror, its
subsidiaries, or its affiliates hold a
contract for consulting services with one
or more covered foreign entities. If the
offeror cannot certify to this, the offeror
may contact the contracting officer for
guidance on submitting an existing
E:\FR\FM\26SEP2.SGM
26SEP2
Agencies
[Federal Register Volume 89, Number 187 (Thursday, September 26, 2024)]
[Proposed Rules]
[Pages 79005-79013]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-21098]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 212, 214, 215, and 252
[Docket DARS-2024-0028]
RIN 0750-AL55
Defense Federal Acquisition Regulation Supplement: DoD Cost or
Pricing Data Requirements (DFARS Case 2022-D004)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: DoD is proposing to amend the Defense Federal Acquisition
Regulation Supplement (DFARS) to implement sections of the National
Defense Authorization Acts for Fiscal Years 2018, 2021, and 2022 that
update requirements for contractors to submit cost or pricing data.
DATES: Comments on the proposed rule should be submitted in writing to
the address shown below on or before November 25, 2024, to be
considered in the formation of a final rule.
ADDRESSES: Submit comments identified by DFARS Case 2022-D004, using
either of the following methods:
[cir] Federal eRulemaking Portal: https://www.regulations.gov.
Search for DFARS Case 2022-D004. Select ``Comment'' and follow the
instructions to submit a comment. Please include ``DFARS Case 2022-
D004'' on any attached documents.
[cir] Email: [email protected]. Include DFARS Case 2022-D004 in
the subject line of the message.
Comments received will generally be posted without change to
https://www.regulations.gov, including any personal information
provided. To confirm receipt of your comment(s), please check https://www.regulations.gov, approximately two to three days after submission
to verify posting.
FOR FURTHER INFORMATION CONTACT: Mr. Jon Snyder, telephone 703-945-
5341.
SUPPLEMENTARY INFORMATION:
I. Background
DoD is proposing to revise the DFARS to implement section 811(b) of
the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2018
(Pub. L. 115-91), section 814 of the NDAA for FY 2021 (Pub. L. 116-
283), and section 804 of the NDAA for FY 2022 (Pub. L. 117-81). Section
811(b) of the NDAA for FY 2018 (10 U.S.C. 2306a(d), now 10
[[Page 79006]]
U.S.C. 3705(a)) requires offerors to submit data other than certified
cost or pricing data upon contracting officer request. Section 814 of
the NDAA for FY 2021 (10 U.S.C. 2306(a)(1), now 10 U.S.C. 3702(a)(2),
(3), and (4)) establishes a $2 million threshold for the Truthful Cost
or Pricing Data statute (formerly Truth in Negotiations Act (TINA) and
still referred to as TINA) requirements with respect to contract
modifications, subcontracts, and modifications to subcontracts,
respectively. Section 804 of the NDAA for FY 2022 augments the
requirement at 10 U.S.C. 2306a(a)(6), now 10 U.S.C. 3702(f), for
contracting officers to modify contracts to reflect the relevant TINA
threshold.
II. Discussion and Analysis
TINA requires, with exceptions, that the Government obtain
certified cost or pricing data for certain contract actions listed at
Federal Acquisition Regulation (FAR) 15.403-4(a)(1), such as negotiated
contracts, certain subcontracts, and certain contract modifications.
Section 811(a) of the NDAA for FY 2018 increased the threshold for
requesting certified cost or pricing data from $750,000 to $2 million
for contracts entered into after June 30, 2018, but it left unchanged
the $750,000 threshold for prime contract modifications. The FAR was
amended to reflect this change effective August 3, 2020.
Section 814 of the NDAA for FY 2021 established a uniform $2
million threshold for TINA requirements with respect to DoD for
contractual actions, including prime contract modifications, entered
into after June 30, 2018. In implementing the change to the thresholds
for prime contract modifications, this proposed rule includes a new
contract clause at DFARS 252.215-70SS, Requirements for Certified Cost
or Pricing Data and Data Other Than Certified Cost or Pricing Data--
Modifications, and its Alternate I. This clause is prescribed for use
in lieu of FAR 52.215-21, Requirements for Certified Cost or Pricing
Data and Data Other Than Certified Cost or Pricing Data--Modifications,
in solicitations and contracts, including solicitations and contracts
using FAR part 12 procedures for the acquisition of commercial products
and commercial services, if the contracting officer anticipates, at the
time of solicitation, that postaward submission of certified cost or
pricing data or data other than certified cost or pricing data may
possibly be required for modifications. Alternate I is used to specify
a format for certified cost or pricing data other than the format
required by FAR Table 15-2. Further, this proposed rule, at DFARS
215.403-4, requires use of the $2 million threshold for submission of
certified cost or pricing data in conjunction with relevant FAR
contract clauses and solicitation provisions regardless of the date on
which the contract was awarded.
Section 804 of the NDAA for FY 2022 augments the requirement at 10
U.S.C. 3702(f) for contracting officers, in connection with a contract
entered into on or before June 30, 2018, to modify the contract to
reflect the changed TINA threshold as necessary. In particular, section
804 requires that such modifications be executed ``as soon as
practicable.'' DoD is proposing to change DFARS 215.403-4 accordingly,
adding six clauses, prescribed at DFARS 214.201-7 and 215.408,
specifically for use when modifying contracts in accordance with 10
U.S.C. 3702(f). The six clauses are as follows:
252.214-70QQ, Alternate A, Price Reduction for Defective
Certified Cost or Pricing Data--Modifications--Sealed Bidding.
252.214-70RR, Alternate A, Subcontractor Certified Cost or
Pricing Data--Modifications--Sealed Bidding.
252.215-70TT, Alternate A, Price Reduction for Defective
Certified Cost or Pricing Data--Modifications.
252.215-70UU, Alternate A, Subcontractor Certified Cost or
Pricing Data.
252.215-70VV, Alternate A, Subcontractor Certified Cost or
Pricing Data--Modifications.
252.215-70WW, Alternate A, Requirements for Certified Cost
or Pricing Data and Data Other Than Certified Cost or Pricing Data--
Modifications.
These new DFARS clauses are designed for use with the FAR clauses
that are already in existing contracts. These six DFARS clauses replace
the references to the TINA threshold in the FAR clauses with the
current, relevant TINA threshold for DoD contracts.
Section 811(b) of the NDAA for FY 2018 requires offerors to submit
data other than certified cost or pricing data upon contracting officer
request. Accordingly, DoD proposes to change the solicitation provision
at DFARS 252.215-7010, Requirements for Certified Cost or Pricing Data
and Data Other Than Certified Cost or Pricing Data, and its Alternate I
to require that, upon contracting officer request, the offeror shall
submit data other than certified cost or pricing data to the extent
necessary to determine the reasonableness of the price of the contract
or subcontract. Similarly, the new clause at 252.215-70SS, Requirements
for Certified Cost or Pricing Data and Data Other Than Certified Cost
or Pricing Data--Modifications, and its Alternate I reflect the same
clarifying language.
III. Applicability to Contracts at or Below the Simplified Acquisition
Threshold (SAT) and for Commercial Services and Commercial Products,
Including Commercially Available Off-the-Shelf (COTS) Items
This rule proposes to amend the solicitation provision at DFARS
252.215-7010, Requirements for Certified Cost or Pricing Data and Data
Other Than Certified Cost or Pricing Data, which already applies to
solicitations using FAR part 12 procedures for the acquisition of
commercial products and commercial services. The changes to the
solicitation provision in this proposed rule, however, do not impose
any new requirements on contracts at or below the SAT or for commercial
services and commercial products, including COTS items. The provision
will continue not to apply to acquisitions at or below the SAT but will
continue to apply to acquisitions of commercial services and commercial
products, including COTS items.
This proposed rule adds a new clause at DFARS 252.215-70SS,
Requirements for Certified Cost or Pricing Data and Data Other Than
Certified Cost or Pricing Data--Modifications, and its Alternate I. The
clause at DFARS 252.215-70SS is prescribed at DFARS 215.408(5)(ii)
introductory text and (5)(ii)(A) and (B) for use in lieu of the clause
at FAR 52.215-21, Requirements for Certified Cost or Pricing Data and
Data Other Than Certified Cost or Pricing Data--Modifications, in
solicitations and contracts, including solicitations and contracts
using FAR part 12 procedures for the acquisition of commercial products
and commercial services, if it is anticipated at the time of
solicitation that postaward submission of certified cost or pricing
data or data other than certified cost or pricing data may be required
for prime contract modifications. Alternate I is prescribed when a
format other than the FAR Table 15-2 format may be used for the
certified cost or pricing data.
This proposed rule also includes new clauses at DFARS 252.214-70QQ,
Alternate A, Price Reduction for Defective Certified Cost or Pricing
Data--Modifications--Sealed Bidding; 252.214-70RR, Alternate A,
Subcontractor Certified Cost or Pricing Data--Modifications--Sealed
Bidding; 252.215-70TT, Alternate A, Price Reduction for Defective
Certified Cost or
[[Page 79007]]
Pricing Data--Modifications; 252.215-70UU, Alternate A, Subcontractor
Certified Cost or Pricing Data; 252.215-70VV, Alternate A,
Subcontractor Certified Cost or Pricing Data--Modifications; and
252.215-70WW, Alternate A, Requirements for Certified Cost or Pricing
Data and Data Other Than Certified Cost or Pricing Data--Modifications.
These clauses are prescribed for use with the respective clauses at FAR
52.214-27, Price Reduction for Defective Certified Cost or Pricing
Data--Modifications--Sealed Bidding; FAR 52.214-28, Subcontractor
Certified Cost or Pricing Data--Modifications--Sealed Bidding; 52.215-
11, Price Reduction for Defective Certified Cost or Pricing Data--
Modifications; 52.215-12, Subcontractor Certified Cost or Pricing Data;
and 52.215-13, Subcontractor Certified Cost or Pricing Data--
Modifications; when, in accordance with 10 U.S.C. 3702(f), modifying a
prime contract entered into before July 1, 2018. Therefore, these
clauses are not appropriate for use in new FAR part 12 solicitations
and contracts.
DoD does not intend to apply the proposed rule to contracts at or
below the SAT. DoD does intend to apply the proposed rule to contracts
for the acquisition of commercial services and commercial products,
including COTS items.
A. Applicability to Contracts at or Below the Simplified Acquisition
Threshold
The statute at 41 U.S.C. 1905 governs the applicability of laws to
contracts or subcontracts in amounts not greater than the simplified
acquisition threshold. It is intended to limit the applicability of
laws to such contracts or subcontracts. The statute at 41 U.S.C. 1905
provides that if a provision of law contains criminal or civil
penalties, or if the Federal Acquisition Regulatory Council makes a
written determination that it is not in the best interest of the
Federal Government to exempt contracts or subcontracts at or below the
SAT, the law will apply to them. The Principal Director, Defense
Pricing, Contracting, and Acquisition Policy (DPCAP), is the
appropriate authority to make comparable determinations for regulations
to be published in the DFARS, which is part of the FAR system of
regulations. DoD does not intend to make that determination. Therefore,
this proposed rule will not apply at or below the simplified
acquisition threshold.
B. Applicability to Contracts for the Acquisition of Commercial
Services and Commercial Products, Including COTS Items
The statute at 10 U.S.C. 3452 exempts contracts and subcontracts
for the acquisition of commercial products, including COTS items, and
commercial services from provisions of law enacted after October 13,
1994, unless the Under Secretary of Defense (Acquisition and
Sustainment) (USD(A&S)) makes a written determination that it would not
be in the best interest of DoD to exempt contracts for the procurement
of commercial products and commercial services from the applicability
of the provision or contract requirement, except for a provision of law
that--
Provides for criminal or civil penalties;
Requires that certain articles be bought from American
sources pursuant to 10 U.S.C. 4862 (previously 10 U.S.C. 2533c), or
that strategic materials critical to national security be bought from
American sources pursuant to 10 U.S.C. 4863 (previously 10 U.S.C.
2533b); or
Specifically refers to 10 U.S.C. 3452 and states that it
shall apply to contracts and subcontracts for the acquisition of
commercial products (including COTS items) and commercial services.
The statutes implemented in this proposed rule do not impose
criminal or civil penalties, do not require purchase pursuant to 10
U.S.C. 4862 or 4863, and do not refer to 10 U.S.C. 3452. Therefore,
section 811(b) of the NDAA for FY 2018, section 814 of the NDAA for FY
2021, and section 804 of the NDAA for FY 2022 will not apply to the
acquisition of commercial services or commercial products including
COTS items unless a written determination is made. Due to delegations
of authority, the Principal Director, DPCAP is the appropriate
authority to make this determination. DoD intends to make that
determination to apply these statutes to the acquisition of commercial
products, including COTS items, and to the acquisition of commercial
services.
C. Determination
DFARS 252.215-7010, Requirements for Certified Cost or Pricing Data
and Data Other Than Certified Cost or Pricing Data, allows offerors to
submit a written request for an exception from the requirement to
submit certified cost or pricing data, by submitting specific
information to support a commercial product or commercial service
exception or an exception based on prices set by law or regulation. As
this implies, DFARS 252.215-7010 is presently prescribed for use in
solicitations to include those using FAR part 12 procedures for the
acquisition of commercial products and commercial services. This
proposed rule does not include any changes to this prescription.
The requirements of section 811(b) of the NDAA for FY 2018, section
814 of the NDAA for FY 2021, and section 804 of the NDAA for FY 2022
should apply to the procurement of commercial products, including COTS
items, and to the procurement of commercial services for the following
reasons. Implementation of these sections provides guidance concerning
rendering of commercial product and commercial service determinations
and the appropriate amount and type of other than certified cost or
pricing information that contracting officers must require an offeror
to submit in order to determine whether proposed prices for commercial
products and commercial services are fair and reasonable. Exclusion of
acquisitions of commercial products, including COTS items, and
commercial services would greatly limit the impact of the statutory
requirements and forestall the opportunity to clarify commercial
product and commercial service documentation, pricing criteria, and
requirements. For example, implementing section 811(b) of the NDAA for
FY 2018 requires augmenting DFARS 252.215-7010, which presently applies
to the acquisition of commercial products and commercial services.
Section 804 of the NDAA for FY 2022 will be implemented in a proposed
new DFARS clause, 252.215-70SS, that is applicable postaward in a
manner analogous to the solicitation provision at DFARS 252.215-7010.
The new clause at 252.215-70SS must similarly apply to the acquisition
of commercial products and commercial services. In order to reflect
congressional intent, section 814 of the NDAA for FY 2021 must apply to
the acquisition of commercial products and commercial services as a
consequence of 252.215-7010 applying to such acquisitions.
An exception for contracts for the acquisition of commercial items,
including COTS items, would exclude the contracts intended to be
covered by the law, thereby undermining the overarching public policy
purpose of the law.
IV. Expected Impact of the Proposed Rule
By increasing the TINA threshold for contract modifications and
subcontracts to match that of contracts entered into after June 30,
2018, this proposed rule,
[[Page 79008]]
when finalized, will benefit both the Government and the public. In
particular, by implementing a uniform TINA threshold, this proposed
rule will promote efficiency and reduce costs associated with
administering contracts. This proposed rule requires contractors to
provide data other than certified cost or pricing data when certified
cost or pricing data is not required. Finally, this proposed rule
provides Government contracting officers with the ability to obtain
data other than certified cost or pricing data for contract
modifications analogous to what they can obtain when issuing contracts.
This data is critical for determining fair and reasonable prices when
certified cost or pricing data is not required. Adding this language
should expedite contract negotiations and award.
V. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess
all costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). E.O.
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
This is not a significant regulatory action and, therefore, was not
subject to review under section 6(b) of E.O. 12866, Regulatory Planning
and Review, as amended.
VI. Regulatory Flexibility Act
DoD does not expect this proposed rule, when finalized, to have a
significant economic impact on a substantial number of small entities
within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et
seq., because the proposed rule does not add to existing requirements
for the submission of other than certified cost or pricing data for the
purpose of determining the reasonableness of proposed prices; rather,
the proposed rule decreases the number of contracts and subcontracts
subject to TINA. However, an initial regulatory flexibility analysis
has been performed and is summarized as follows:
DoD is proposing to amend the DFARS to implement the following:
section 811(b) of the National Defense Authorization Act (NDAA) for
Fiscal Year (FY) 2018 (Pub. L. 115-91), section 814 of the NDAA for FY
2021 (Pub. L. 116-283), and section 804 of the NDAA for FY 2022 (Pub.
L. 117-81). Section 811(b) of the NDAA for FY 2018 (10 U.S.C. 2306a(d),
now 10 U.S.C. 3705(a)) requires offerors to submit data other than
certified cost or pricing data upon contracting officer request.
Section 814 of the NDAA for FY 2021 (10 U.S.C. 2306(a)(1), now 10
U.S.C. 3702(a)(2), (3), and (4)) establishes a $2 million threshold for
the Truthful Cost or Pricing Data (Truth in Negotiations) statute
(referred to as TINA) requirements with respect to contract
modifications, subcontracts, modifications to subcontracts. TINA
requires, with notable exceptions, contractors to submit cost or
pricing data and to certify the accuracy of the data, for the award of
negotiated contracts exceeding the $2 million threshold. Section 804 of
the NDAA for FY 2022 augments the requirement at 10 U.S.C. 2306a(a)(6)
(now 10 U.S.C. 3702(f)) for contracting officers to modify contracts to
reflect the relevant TINA threshold. Section 804 requires such
modifications to be executed ``as soon as practicable.''
The objective of this proposed rule is to propose amendments to the
DFARS to implement the statutory changes described above. The legal
basis for the proposed rule is section 811(b) of the NDAA for FY 2018,
section 814 of the NDAA for FY 2021, and section 804 of the NDAA for FY
2022.
Data was obtained from the Federal Procurement Data System for new
awards valued over $2 million in FY 2019, FY 2020, and FY 2021. DoD
awarded an average of 10,593 contracts per year during FY 2019 through
FY 2021. Of those contracts, an average of approximately 5,567
contracts were awarded to 3,659 unique small entities per year. By
increasing the TINA threshold for contract modifications and
subcontracts, this proposed rule will benefit small businesses by
reducing the overall number of contracts to which TINA requirements
apply.
The proposed rule imposes new reporting, recordkeeping, or
compliance requirements via proposed DFARS clause 252.215-70SS,
Requirements for Certified Cost or Pricing Data and Data Other Than
Certified Cost or Pricing Data--Modifications.
The proposed rule does not duplicate, overlap, or conflict with any
other Federal rules.
There are no known alternatives that would accomplish the stated
objectives of the applicable statutes.
DoD invites comments from small business concerns and other
interested parties on the expected impact of this proposed rule on
small entities.
DoD will also consider comments from small entities concerning the
existing regulations in subparts affected by this proposed rule in
accordance with 5 U.S.C. 610. Interested parties must submit such
comments separately and should cite 5 U.S.C. 610 (DFARS Case 2022-
D004), in correspondence.
VII. Paperwork Reduction Act
This proposed rule contains information collection requirements
that require the approval of the Office of Management and Budget (OMB)
under the Paperwork Reduction Act (44 U.S.C. chapter 35). Accordingly,
DoD has submitted a request for approval of a revised information
collection requirement concerning OMB Control Number 0704-0574, titled
``Defense Federal Acquisition Regulation Supplement (DFARS) Part 215;
Only One Offer and Related Clauses at 252.215,'' to OMB.
A. Estimate of Public Burden
Public reporting burden for this collection of information is
estimated to average 30 hours per response, including the time for
reviewing instructions, searching existing data sources, gathering and
maintaining the data needed, and completing and reviewing the
collection of information.
The annual reporting burden estimated as follows:
Respondents: 1,247.
Total annual responses: 1,435.
Total annual burden hours: 50,190.
B. Request for Comments Regarding Paperwork Burden
Written comments and recommendations on the proposed information
collection, including suggestions for reducing this burden, should be
submitted using the Federal eRulemaking Portal at https://www.regulations.gov or by email to [email protected]. Comments can be
received up to 60 days after the date of this notice.
Public comments are particularly invited on: whether this
collection of information is necessary for the proper performance of
the functions of DoD, including whether the information will have
practical utility; the accuracy of DoD's estimate of the burden of this
information collection; ways to enhance the quality, utility, and
clarity of the information to be collected; and ways to minimize the
burden of the information collection on respondents, including through
the use of automated collection techniques or other forms of
information technology.
To obtain a copy of the supporting statement and associated
collection instruments, please email [email protected]. Include DFARS
Case 2022-D004 in the subject line of the message.
[[Page 79009]]
List of Subjects in 48 CFR Parts 212, 214, 215, and 252
Government procurement.
Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition Regulations System.
Therefore, the Defense Acquisition Regulations System proposes to
amend 48 CFR parts 212, 214, 215, and 252 amended as follows:
0
1. The authority citation for 48 CFR parts 212, 214, 215, and 252
continues to read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
PART 212--ACQUISITION OF COMMERCIAL PRODUCTS AND COMMERCIAL
SERVICES
0
2. Amend section 212.301 by revising paragraph (f)(vi)(E) introductory
text and adding paragraph (f)(vi)(G) to read as follows:
212.301 Solicitation provisions and contract clauses for the
acquisition of commercial products and commercial services.
* * * * *
(f) * * *
(vi) * * *
(E) Use the provision 252.215-7010, Requirements for Certified Cost
or Pricing Data and Data Other Than Certified Cost or Pricing Data, as
prescribed at 215.408(5)(i) to comply with section 831 of the National
Defense Authorization Act for Fiscal Year 2013 (Pub. L. 112-239) and 10
U.S.C. 3702(a), 3703(d) and (e), and 3705(a).
* * * * *
(G) Use the clause at 252.215-70SS, Requirements for Certified Cost
or Pricing Data and Data Other Than Certified Cost or Pricing Data--
Modifications, as prescribed at 215.408(5)(ii) to comply with section
831 of the National Defense Authorization Act for Fiscal Year 2013
(Pub. L. 112-239) and 10 U.S.C. 3702(a), 3703(d) and (e), and 3705(a).
* * * * *
PART 214--SEALED BIDDING
0
3. Revise section 214.201-6 to read as follows:
214.201-6 Solicitation provisions.
Use the provisions at 252.215-7007, Notice of Intent to Resolicit,
and 252.215-7008, Only One Offer, as prescribed at 215.371-6 and
215.408(3), respectively.
0
4. Add section 214.201-7 to read as follows:
214.201-7 Contract clauses.
(b)(1) When modifying a contract entered into before July 1, 2018,
in accordance with 215.403-4(a)(3), use the clause at FAR 52.214-27,
Price Reduction for Defective Certified Cost or Pricing Data--
Modifications--Sealed Bidding, with 252.214-70QQ, Alternate A, Price
Reduction for Defective Certified Cost or Pricing Data--Modifications--
Sealed Bidding.
(c)(1)(ii) When modifying a contract entered into before July 1,
2018, in accordance with 215.403-4(a)(3), use the clause at FAR 52.214-
28, Subcontractor Certified Cost or Pricing Data--Modifications--Sealed
Bidding, with 252.214-70RR, Alternate A, Subcontractor Certified Cost
or Pricing Data--Modifications--Sealed Bidding. Do not use alternate I
of the clause at FAR 52.214-28.
PART 215--CONTRACTING BY NEGOTIATION
0
5. Add section 215.403-4 to read as follows:
215.403-4 Requiring certified cost or pricing data (10 U.S.C. chapter
271 and 41 U.S.C. chapter 35).
(a)(1) Notwithstanding FAR 15.403-4(a)(1), the $2 million threshold
for obtaining certified cost or pricing data applies to contract
modifications, subcontracts, and subcontract modifications, regardless
of when the prime contract was awarded.
(3) For a contract entered into before July 1, 2018, the
contracting officer shall modify the contract as soon as practicable,
without requiring consideration, to reflect the threshold at paragraph
(a)(1) for obtaining certified cost or pricing data on contract
modifications and subcontracts entered into on or after July 1, 2018
(10 U.S.C. 3702(f)). See 214.201-7 and 215.408.
0
6. Amend section 215.408--
0
a. By redesignating paragraphs (5)(ii) and (iii) as paragraphs (5)(iii)
and (iv); and
0
b. By adding a new paragraph (5)(ii) and paragraph (9).
The additions read as follows:
215.408 Solicitation provisions and contract clauses.
* * * * *
(5) * * *
(ii) Use the basic or alternate of the clause at 252.215-70SS,
Requirements for Certified Cost or Pricing Data and Data Other Than
Certified Cost or Pricing Data--Modifications, in lieu of the clause at
FAR 52.215-21, Requirements for Certified Cost or Pricing Data and Data
Other Than Certified Cost or Pricing Data--Modifications, in
solicitations and contracts, including solicitations and contracts
using FAR part 12 procedures for the acquisition of commercial products
and commercial services, if it is reasonably certain that certified
cost or pricing data or data other than certified cost or pricing data
will be required for modifications.
(A) Use the basic clause when submission of certified cost or
pricing data is required to be in the FAR Table 15-2 format.
(B) Use the alternate I clause to specify a format for certified
cost or pricing data other than the format required by FAR Table 15-2.
* * * * *
(9) When modifying a prime contract entered into before July 1,
2018, in accordance with 215.403-4(a)(3)--
(i) Use the clause at FAR 52.215-11, Price Reduction for Defective
Certified Cost or Pricing Data--Modifications, with 252.215-70TT,
Alternate A, Price Reduction for Defective Certified Cost or Pricing
Data--Modifications.
(ii)(A) Use the clause at FAR 52.215-12, Subcontractor Certified
Cost or Pricing Data, with 252.215-70UU, Alternate A, Subcontractor
Certified Cost or Pricing Data.
(B) Do not use alternate I of the clause at FAR 52.215-12.
(iii)(A) Use the clause at FAR 52.215-13, Subcontractor Certified
Cost or Pricing Data--Modifications, with 252.215-70VV, Alternate A,
Subcontractor Certified Cost or Pricing Data--Modifications.
(B) Do not use alternate I of the clause at FAR 52.215-13.
(iv) Use the clause at 52.215-21, Requirements for Certified Cost
or Pricing Data and Data Other Than Certified Cost or Pricing Data--
Modifications, with 252.215-70WW, Alternate A, Requirements for
Certified Cost or Pricing Data and Data Other Than Certified Cost or
Pricing Data--Modifications.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
7. Add section 252.214-70QQ to read as follows:
252.214-70QQ Alternate A, Price Reduction for Defective Certified Cost
or Pricing Data--Modifications--Sealed Bidding.
As prescribed in 214.201-7(b)(1), use the following clause:
[[Page 79010]]
Alternate A, Price Reduction for Defective Certified Cost or Pricing
Data--Modifications--Sealed Bidding (Date)
Substitute ``215.403-4(a)(1) of the Defense Federal Acquisition
Regulation Supplement'' for references to 15.403-4(a)(1) of the
Federal Acquisition Regulation wherever they appear in the clause at
52.214-27, Price Reduction for Defective Certified Cost or Pricing
Data--Modifications--Sealed Bidding.
(End of clause)
0
8. Add section 252.214-70RR to read as follows:
252.214-70RR Alternate A, Subcontractor Certified Cost or Pricing
Data--Modifications--Sealed Bidding.
As prescribed in 214.201-7(c)(1)(ii), use the following clause:
Alternate A, Subcontractor Certified Cost or Pricing Data--
Modifications--Sealed Bidding (Date)
Substitute ``215.403-4(a)(1) of the Defense Federal Acquisition
Regulation Supplement'' for references to 15.403-4(a)(1) of the
Federal Acquisition Regulation wherever they appear in the clause at
52.214-28, Subcontractor Certified Cost or Pricing Data--
Modifications--Sealed Bidding.
(End of clause)
0
9. Amend section 252.215-7010--
0
a. By removing the provision date of ``(MAY 2024)'' and adding
``(DATE)'' in its place;
0
b. By revising paragraph (b)(1)(ii)(C);
0
c. In paragraph (b)(1)(ii)(D) by removing ``items'' and ``the DoD'' and
adding ``products or services'' and ``DoD'' in their places,
respectively;
0
d. In paragraphs (b)(1)(ii)(E) and (F) by removing ``items'' and adding
``products or services'' in its place;
0
e. By revising paragraph (c)(3);
0
f. By redesignating paragraphs (d)(1) through (5) as paragraphs (d)(2)
through (6);
0
g. By adding a new paragraph (d)(1);
0
h. In newly redesignated paragraph (d)(5) by removing ``FAR 15.403-3''
and adding ``this paragraph (d)'' in its place;
0
i. In paragraph (e)(1) by removing ``FAR 15.403-4'' and adding ``DFARS
215.403-4(a)(1)'' in its place; and
0
j. In Alternate I--
0
i. By removing the provision date of ``(MAY 2024)'' and adding
``(DATE)'' in its place;
0
ii. By revising paragraph (b)(1)(ii)(C);
0
iii. In paragraph (b)(1)(ii)(D) by removing ``items'' and ``the DoD''
and adding ``products or services'' and ``DoD'' in their places,
respectively;
0
iv. In paragraph (b)(1)(ii)(E) by removing ``items'' and adding
``products or services'' in its place;
0
v. By revising paragraphs (b)(1)(ii)(F) and (c)(3);
0
vi. By redesignating paragraphs (d)(1) through (6) as paragraphs (d)(2)
through (7);
0
vii. By adding a new paragraph (d)(1);
0
viii. By revising newly redesignated paragraph (d)(6); and
0
ix. In paragraph (e)(1) by removing ``FAR 15.403-4'' and adding ``DFARS
215.403-4(a)(1)'' in its place.
The revisions and additions read as follows:
252.215-7010 Requirements for Certified Cost or Pricing Data and Data
Other Than Certified Cost or Pricing Data.
* * * * *
(b) * * *
(1) * * *
(ii) * * *
(C) For products or services priced based on a catalog--
(1) A copy of or identification of the Offeror's current catalog
showing the price for that product or service; and
(2) If the catalog pricing provided with this proposal is not
supported by all relevant sales data, a detailed description of
differences or inconsistencies between or among the relevant sales
data, the proposed price, and the catalog price (including any related
discounts, refunds, rebates, offsets, or other adjustments);
* * * * *
(c) * * *
(3) The Offeror is responsible for determining whether a
subcontractor qualifies for an exception from the requirement for
submission of certified cost or pricing data on the basis of adequate
price competition in accordance with FAR 15.403-1(c)(1)(i).
(d) * * *
(1) When certified cost or pricing data are not required to be
submitted under this provision, the Offeror shall submit data other
than certified cost or pricing data to the extent necessary to
determine the reasonableness of the price of the contract or
subcontract, when requested by the Contracting Officer.
* * * * *
Alternate I. * * *
(b) * * *
(1) * * *
(ii) * * *
(C) For products or services priced based on a catalog--
(1) A copy of or identification of the Offeror's current catalog
showing the price for that product or service; and
(2) If the catalog pricing provided with this proposal is not
supported by all relevant sales data, a detailed description of
differences or inconsistencies between or among the relevant sales
data, the proposed price, and the catalog price (including any related
discounts, refunds, rebates, offsets, or other adjustments);
* * * * *
(F) For products or services provided by nontraditional defense
contractors, a statement that the entity is not currently performing
and has not performed, for at least the 1-year period preceding the
solicitation of sources by DoD for the procurement or transaction, any
contract or subcontract for DoD that is subject to full coverage under
the cost accounting standards prescribed pursuant to 41 U.S.C. 1502 and
the regulations implementing such section.
* * * * *
(c) * * *
(3) The Offeror is responsible for determining whether a
subcontractor qualifies for an exception from the requirement for
submission of certified cost or pricing data on the basis of adequate
price competition in accordance with FAR 15.403-1(c)(1)(i).
(d) * * *
(1) When certified cost or pricing data are not required to be
submitted under this provision, the Offeror shall submit data other
than certified cost or pricing data to the extent necessary to
determine the reasonableness of the price of the contract or
subcontract, when requested by the Contracting Officer.
* * * * *
(5) Within 10 days of a written request from the Contracting
Officer for additional information to permit an adequate evaluation of
the proposed price in accordance with this paragraph (d), the Offeror
shall provide either the requested information, or a written
explanation for the inability to fully comply.
* * * * *
0
10. Add section 252.215-70SS to read as follows:
252.215-70SS Requirements for Certified Cost or Pricing Data and Data
Other Than Certified Cost or Pricing Data--Modifications.
As prescribed in 215.408(5)(ii) and (5)(ii)(A), use the following
basic clause:
Requirements for Certified Cost or Pricing Data and Data Other Than
Certified Cost or Pricing Data--Modifications--Basic (DATE)
(a) Definitions. As used in this clause--
Market prices means current prices that are established in the
course of ordinary trade between buyers and sellers free to bargain
and that can be substantiated through competition or from sources
independent of the offeror, contractor, or subcontractor.
Non-Government sales means sales of the supplies or services to
non-Governmental entities for purposes other than governmental
purposes.
[[Page 79011]]
Relevant sales data means information provided by an offeror,
contractor, or subcontractor on sales of the same or similar items
that can be used to establish price reasonableness taking into
consideration the age, volume, and nature of the transactions
(including any related discounts, refunds, rebates, offsets, or
other adjustments).
Sufficient non-Government sales means relevant sales data that
reflects market pricing and contains enough information to make
adjustments covered by Federal Acquisition Regulation (FAR) 15.404-
1(b)(2)(ii)(B).
Uncertified cost data means the subset of ``data other than
certified cost or pricing data'' (see FAR 2.101) that relates to
cost.
(b) Exceptions from certified cost or pricing data.
(1) In lieu of submitting certified cost or pricing data for
modifications under this contract, for price adjustments expected to
exceed the threshold set forth in Defense Federal Acquisition
Regulation Supplement (DFARS) 215.403-4(a)(1), the Contractor may
submit a written request for exception by submitting the information
described in paragraphs (b)(1)(i) and (ii) of this clause. The
Contracting Officer may require additional supporting information,
but only to the extent necessary to determine whether an exception
should be granted and whether the price is fair and reasonable.
(i) Exception for prices set by law or regulation--
Identification of the law or regulation establishing the prices
offered. If the prices are controlled under law by periodic rulings,
reviews, or similar actions of a governmental body, provide a copy
of the controlling document, unless it was previously submitted to
the contracting office.
(ii) Commercial product and commercial service exception. For a
commercial product or commercial service exception, the Contractor
shall submit, at a minimum, information that is adequate for
evaluating the reasonableness of the price for this modification,
including prices at which the same or similar products or services
have been sold in the commercial market. The Contractor may provide
information establishing that the proposed modification would not
change the existing contract or subcontract from a contract or
subcontract for a commercial product or commercial service to one
for other than a commercial product or service. Such information
shall include--
(A) For products or services previously determined to be
commercial, the contract number and military department, defense
agency, or other DoD component that rendered such determination and,
if available, a Government point of contact;
(B) For products or services priced based on a catalog--
(1) A copy of or identification of the Contractor's current
catalog showing the price for that product or service; and
(2) If the catalog pricing provided with this proposal is not
supported by all relevant sales data, a detailed description of
differences or inconsistencies between or among the relevant sales
data, the proposed price, and the catalog price, including any
related discounts, refunds, rebates, offsets, or other adjustments;
(C) For products or services priced based on market pricing, a
description of the nature of the commercial market, the methodology
used to establish a market price, and all relevant sales data. The
description shall be adequate to permit DoD to verify the accuracy
of the description;
(D) For products or services included on an active Federal
Supply Service Multiple Award Schedule contract, proof that an
exception has been granted for the schedule products or services; or
(E) For products or services provided by nontraditional defense
contractors, a statement that the entity is not currently performing
and has not performed, for at least the 1-year period preceding the
solicitation of sources by DoD for the procurement, any contract or
subcontract for DoD that is subject to full coverage under the cost
accounting standards prescribed pursuant to 41 U.S.C. 1502 and the
regulations implementing such section.
(2) The Contractor grants the Contracting Officer or an
authorized representative the right to examine, at any time before
award, books, records, documents, or other directly pertinent
records to verify any request for an exception under this clause,
and to determine the reasonableness of price.
(c) Requirements for certified cost or pricing data. If the
Contractor is not granted an exception from the requirement to
submit certified cost or pricing data, the following applies:
(1) The Contractor shall prepare and submit certified cost or
pricing data and supporting attachments in accordance with the
instructions contained in Table 15-2 of FAR 15.408, which is
incorporated by reference with the same force and effect as though
it were inserted here in full text. The instructions in Table 15-2
are incorporated as a mandatory format to be used in this contract,
unless the Contracting Officer and the Contractor agree to a
different format and replace this clause with Alternate I of
252.215-70SS.
(2) As soon as practicable after agreement on price, but before
award of the modification, the Contractor shall submit a Certificate
of Current Cost or Pricing Data, as prescribed by FAR 15.406-2.
(3) The Contractor is responsible for determining whether a
subcontractor qualifies for an exception from the requirement for
submission of certified cost or pricing data on the basis of
adequate price competition in accordance with FAR 15.403-1(c)(1)(i).
(d) Requirements for data other than certified cost or pricing
data.
(1) When certified cost or pricing data are not required to be
submitted under this clause for a contract or subcontract, the
Contractor shall submit data other than certified cost or pricing
data to the extent necessary to determine the reasonableness of the
price of the contract or subcontract when requested by the
Contracting Officer.
(2) Data other than certified cost or pricing data submitted in
accordance with this clause shall include the minimum information
necessary to permit a determination that the proposed price is fair
and reasonable, to include the requirements in DFARS 215.402(a)(i)
and 215.404-1(b).
(3) In cases in which uncertified cost data is required, the
information shall be provided in the form in which it is regularly
maintained by the Contractor, subcontractor, or prospective
subcontractor in its business operations.
(4) Within 10 days of a written request from the Contracting
Officer for additional information to permit an adequate evaluation
of the proposed price in accordance with this paragraph, the
Contractor shall provide either the requested information or a
written explanation for the inability to fully comply.
(e) Subcontract price evaluation.
(1) Contractors shall obtain from subcontractors the minimum
information necessary to support a determination of price
reasonableness, as described in FAR part 15 and DFARS part 215.
(2) No cost data may be required from a current or prospective
subcontractor in any case in which there are sufficient non-
Government sales of the same item to establish reasonableness of
price.
(3) If the Contractor relies on relevant sales data for similar
items to determine the price is reasonable, the Contractor shall
obtain only that technical information necessary to--
(i) Support the conclusion that items are technically similar;
and
(ii) Explain any technical differences that account for
variances between the proposed prices and the sales data presented.
(f) Subcontracts. The Contractor shall insert the substance of
this clause, including this paragraph (f), in subcontracts exceeding
the simplified acquisition threshold defined in FAR part 2. The
Contractor shall require subcontractors and prospective
subcontractors to adhere to the requirements of--
(1) Paragraphs (c) and (d) of this clause for subcontracts above
the threshold for submission of certified cost or pricing data in
DFARS 215.403-4(a)(1); and
(2) Paragraph (d) of this clause for subcontracts exceeding the
simplified acquisition threshold defined in FAR part 2.
(End of clause)
Alternate I. As prescribed in 215.408(5)(ii) and (5)(ii)(B), use
the following clause, which includes a different paragraph (c)(1)
than the basic clause and amends paragraph (d) by redesignating
paragraph (d)(4) of the basic clause as (d)(5) and adding a new
paragraph (d)(4).
Requirements for Certified Cost or Pricing Data and Data Other Than
Certified Cost or Pricing Data--Modifications--Alternate I (DATE)
(a) Definitions. As used in this clause--
Market prices means current prices that are established in the
course of ordinary trade between buyers and sellers free to bargain
and that can be substantiated through competition or from sources
independent of the offeror, contractor, or subcontractor.
Non-Government sales means sales of the supplies or services to
non-Governmental entities for purposes other than governmental
purposes.
Relevant sales data means information provided by an offeror,
contractor, or subcontractor on sales of the same or similar
[[Page 79012]]
items that can be used to establish price reasonableness taking into
consideration the age, volume, and nature of the transactions
(including any related discounts, refunds, rebates, offsets, or
other adjustments).
Sufficient non-Government sales means relevant sales data that
reflects market pricing and contains enough information to make
adjustments covered by Federal Acquisition Regulation (FAR) 15.404-
1(b)(2)(ii)(B).
Uncertified cost data means the subset of ``data other than
certified cost or pricing data'' (see FAR 2.101) that relates to
cost.
(b) Exceptions from certified cost or pricing data.
(1) In lieu of submitting certified cost or pricing data for
modifications under this contract, for price adjustments expected to
exceed the threshold set forth in Defense Federal Acquisition
Regulation Supplement (DFARS) 215.403-4(a)(1), the Contractor may
submit a written request for exception by submitting the information
described in paragraphs (b)(1)(i) and (ii) of this clause. The
Contracting Officer may require additional supporting information,
but only to the extent necessary to determine whether an exception
should be granted and whether the price is fair and reasonable.
(i) Exception for prices set by law or regulation--
Identification of the law or regulation establishing the prices
offered. If the price is controlled under law by periodic rulings,
reviews, or similar actions of a governmental body, provide a copy
of the controlling document, unless it was previously submitted to
the contracting office.
(ii) Commercial product and commercial service exception. For a
commercial product or commercial service exception, the Contractor
shall submit, at a minimum, information that is adequate for
evaluating the reasonableness of the price for this modification,
including prices at which the same or similar products or services
have been sold in the commercial market. The Contractor may provide
information establishing that the proposed modification would not
change the existing contract or subcontract from a contract or
subcontract for a commercial product or commercial service to one
for other than a commercial product or service. Such information
shall include--
(A) For products or services previously determined to be
commercial, the contract number and military department, defense
agency, or other DoD component that rendered such determination and,
if available, a Government point of contact;
(B) For products or services priced based on a catalog--
(1) A copy of or identification of the Contractor's current
catalog showing the price for that product or service; and
(2) If the catalog pricing provided with this proposal is not
supported by all relevant sales data, a detailed description of
differences or inconsistencies between or among the relevant sales
data, the proposed price, and the catalog price, including any
related discounts, refunds, rebates, offsets, or other adjustments;
(C) For products or services priced based on market pricing, a
description of the nature of the commercial market, the methodology
used to establish a market price, and all relevant sales data. The
description shall be adequate to permit DoD to verify the accuracy
of the description;
(D) For products or services included on an active Federal
Supply Service Multiple Award Schedule contract, proof that an
exception has been granted for the schedule products or services; or
(E) For products or services provided by nontraditional defense
contractors, a statement that the entity is not currently performing
and has not performed, for at least the 1-year period preceding the
solicitation of sources by DoD for the procurement, any contract or
subcontract for DoD that is subject to full coverage under the cost
accounting standards prescribed pursuant to 41 U.S.C. 1502 and the
regulations implementing such section.
(2) The Contractor grants the Contracting Officer or an
authorized representative the right to examine, at any time before
award, books, records, documents, or other directly pertinent
records to verify any request for an exception under this clause,
and to determine the reasonableness of price.
(c) Requirements for certified cost or pricing data. If the
Contractor is not granted an exception from the requirement to
submit certified cost or pricing data, the following applies:
(1) The Contractor shall submit certified cost or pricing data
and supporting attachments in the following format: [Contracting
officer insert description of the data and format that are required,
and include access to records necessary to permit an adequate
evaluation of the proposed price in accordance with FAR 15.408,
Table 15-2, Note 2. The Contracting Officer shall insert the
description at the time of issuing the solicitation or specify that
the format regularly maintained by the Contractor or current or
prospective subcontractor in its business operations will be
acceptable. The Contracting Officer may amend the description as the
result of negotiations.]
(2) As soon as practicable after agreement on price, but before
award of the modification, the Contractor shall submit a Certificate
of Current Cost or Pricing Data, as prescribed by FAR 15.406-2.
(3) The Contractor is responsible for determining whether a
subcontractor qualifies for an exception from the requirement for
submission of certified cost or pricing data on the basis of
adequate price competition in accordance with FAR 15.403-1(c)(1)(i).
(d) Requirements for data other than certified cost or pricing
data.
(1) When certified cost or pricing data are not required to be
submitted under this clause for a contract or subcontract, the
Contractor shall submit data other than certified cost or pricing
data to the extent necessary to determine the reasonableness of the
price of the contract or subcontract when requested by the
Contracting Officer.
(2) Data other than certified cost or pricing data submitted in
accordance with this clause shall include the minimum information
necessary to permit a determination that the proposed price is fair
and reasonable, to include the requirements in DFARS 215.402(a)(i)
and 215.404-1(b).
(3) In cases in which uncertified cost data is required, the
information shall be provided in the form in which it is regularly
maintained by the Contractor, subcontractor, or prospective
subcontractor in its business operations.
(4) The Contractor shall provide information described as
follows: [Insert description of the data and the format that are
required upon request, including access to records necessary to
permit an adequate evaluation of the proposed price in accordance
with FAR 15.403-3].
(5) Within 10 days of a written request from the Contracting
Officer for additional information to permit an adequate evaluation
of the proposed price in accordance with this paragraph, the
Contractor shall provide either the requested information or a
written explanation for the inability to fully comply.
(e) Subcontract price evaluation.
(1) The Contractor shall obtain from subcontractors the
information necessary to support a determination of price
reasonableness, as described in FAR part 15 and DFARS part 215.
(2) No cost data may be required from a current or prospective
subcontractor in any case in which there are sufficient non-
Government sales of the same item to establish reasonableness of
price.
(3) If the Contractor relies on relevant sales data for similar
items to determine the price is reasonable, the Contractor shall
obtain only that technical information necessary to--
(i) Support the conclusion that items are technically similar;
and
(ii) Explain any technical differences that account for
variances between the proposed prices and the sales data presented.
(f) Subcontracts. The Contractor shall insert the substance of
this clause, including this paragraph (f), in subcontracts exceeding
the simplified acquisition threshold defined in FAR part 2. The
Contractor shall require subcontractors and prospective
subcontractors to adhere to the requirements of--
(1) Paragraphs (c) and (d) of this clause for subcontracts above
the threshold for submission of certified cost or pricing data in
DFARS 215.403-4(a)(1); and
(2) Paragraph (d) of this clause for subcontracts exceeding the
simplified acquisition threshold defined in FAR part 2.
(End of clause)
0
11. Add sections 252.215-70TT, 252.215-70UU, 252.215-70VV, and 252.215-
70WW to read as follows:
* * * * *
Sec.
252.215-70TT Alternate A, Price Reduction for Defective Certified
Cost or Pricing Data--Modifications.
252.215-70UU Alternate A, Subcontractor Certified Cost or Pricing
Data.
252.215-70VV Alternate A, Subcontractor Certified Cost or Pricing
Data--Modifications.
252.215-70WW Alternate A, Requirements for Certified Cost or Pricing
Data and
[[Page 79013]]
Data Other Than Certified Cost or Pricing Data--Modifications.
* * * * *
252.215-70TT Alternate A, Price Reduction for Defective Certified
Cost or Pricing Data--Modifications.
As prescribed in 215.408(9)(i), use the following clause:
Alternate A, Price Reduction for Defective Certified Cost or Pricing
Data--Modifications (DATE)
Substitute ``215.403-4(a)(1) of the Defense Federal Acquisition
Regulation Supplement'' for references to 15.403-4(a)(1) of the
Federal Acquisition Regulation wherever they appear in the clause at
52.215-11, Price Reduction for Defective Certified Cost or Pricing
Data--Modifications.
(End of clause)
252.215-70UU Alternate A, Subcontractor Certified Cost or Pricing
Data.
As prescribed in 215.408(9)(ii), use the following clause:
Alternate A, Subcontractor Certified Cost or Pricing Data (DATE)
Substitute ``215.403-4(a)(1) of the Defense Federal Acquisition
Regulation Supplement'' for references to 15.403-4(a)(1) of the
Federal Acquisition Regulation wherever they appear in the clause at
52.215-12, Subcontractor Certified Cost or Pricing Data.
(End of clause)
252.215-70VV Alternate A, Subcontractor Certified Cost or Pricing
Data--Modifications.
As prescribed in 215.408(9)(iii), use the following clause:
Alternate A, Subcontractor Certified Cost or Pricing Data--
Modifications (DATE)
Substitute ``215.403-4(a)(1) of the Defense Federal Acquisition
Regulation Supplement'' for references to 15.403-4(a)(1) of the
Federal Acquisition Regulation wherever they appear in the clause at
52.215-13, Subcontractor Certified Cost or Pricing Data--
Modifications.
(End of clause)
252.215-70WW Alternate A, Requirements for Certified Cost or Pricing
Data and Data Other Than Certified Cost or Pricing Data--Modifications.
As prescribed in 215.408(9)(iv), use the following clause:
Alternate A, Requirements for Certified Cost or Pricing Data and Data
Other Than Certified Cost or Pricing Data--Modifications (DATE)
Substitute ``215.403-4(a)(1) of the Defense Federal Acquisition
Regulation Supplement'' for references to 15.403-4(a)(1) of the
Federal Acquisition Regulation wherever they appear in the clause at
52.215-21, Requirements for Certified Cost or Pricing Data and Data
Other Than Certified Cost or Pricing Data--Modifications.
(End of clause)
[FR Doc. 2024-21098 Filed 9-25-24; 8:45 am]
BILLING CODE 6820-FR-P