Government Contracts FAR Rule Clarifies Certified Cost or Pricing Data Exception
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Monday, July 8, 2019

FAR Rule Clarifies Certified Cost or Pricing Data Exception

By Government Contracts Editorial Staff

The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council have issued Federal Acquisition Circular 2019-03, which contains one final rule amending the Federal Acquisition Regulation: Exception from Certified Cost or Pricing Data Requirements—Adequate Price Competition (FAR Case 2017-006). The FAC also contains a Small Entity Compliance Guide. The rule goes into effect on July 12, 2019. For the text of FAC 2019-03, see ¶70,002.208.

Adequate Price Competition. The rule amends the FAR to provide guidance consistent with section 822 of the National Defense Authorization Act for Fiscal Year 2017 (PL 114-328) that addresses the exception from certified cost or pricing data requirements when price is based on adequate competition. Specifically, the rule amends FAR 15.403-1 to provide a separate standard for adequate price competition for the Department of Defense, the National Aeronautics and Space Administration, and the Coast Guard. The rule limits the exception for price based on adequate price competition to circumstances in which there is adequate competition that results in at least two or more responsive and viable competing bids. The rule also makes conforming changes to the cross-references at FAR 15.305(a)(1) and FAR 15.404-1(b)(2)(i).

Changes to Proposed Rule. In response to comments, the final rule makes some changes to the proposed rule (¶70,006.328). Instead of providing a separate standard for DoD, NASA, and the Coast Guard, the final rule states what is common to all agencies and then makes the standard relating to expectation of competition applicable only to agencies other than DoD, NASA, and the Coast Guard. This clarification is not a substantive change. Also, for simplicity, the final rule expresses the new requirements using existing FAR terminology and does not use the terms “responsive” and “viable.”

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