Government Contracts FAR Rule Addresses Cost or Pricing Data Requirements
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Thursday, July 30, 2020

FAR Rule Addresses Cost or Pricing Data Requirements

By Government Contracts Editorial Staff

The final rule in FAR Case 2018-005 implements section 880 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (PL 115-232, 41 USC 3701 Note) which makes it the government’s policy to avoid use of the lowest price technically acceptable source selection criteria in circumstances that would deny the government the benefits of cost and technical tradeoffs. Section 880 also provides that use of LPTA source selection criteria must be avoided in procurements that are predominantly for the acquisition of information technology services, cybersecurity services, systems engineering and technical assistance services, advanced electronic testing, audit or audit readiness services, health care services and records, telecommunications devices and services, other knowledge-based professional services, personal protective equipment, or knowledge-based training or logistics services in contingency operations or other operations outside the United States. The rule requires COs to document the contract file with a justification for the use of the LPTA source selection process and avoid the use of LPTA criteria in procurements that are predominantly for the supplies and services identified in section 880. This rule does not apply to DoD or the Federal Supply Schedule Program. DoD had issued a prior rule implementing restrictions on the use of LPTA source selection criteria (¶70,017.14), and GSA will separately address the applicability of section 880 to the FSS Program. There are no changes as a result of comments on the proposed rule (¶70,006.346).

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