Government Contracts FAR Rule Would Increase Certified Cost or Pricing Data Threshold
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Thursday, November 7, 2019

FAR Rule Would Increase Certified Cost or Pricing Data Threshold

By Government Contracts Editorial Staff

The Department of Defense, General Services Administration, and National Aeronautics and Space Administration are proposing to amend the Federal Acquisition Regulation to increase the threshold for requiring certified cost or pricing data. 10 USC 2306a, Truth in Negotiations, and 41 USC 3502, Required cost or pricing data and certification, require the government to obtain CCPD for contract actions listed at FAR 15.403-4(a)(1), including negotiated contracts, certain subcontracts, and certain contract modifications. Section 811 of the National Defense Authorization Act for Fiscal Year 2018 (PL 115-91) amended the thresholds in these statutes for requiring CCPD, from $750,000 to $2 million, for contracts entered after June 30, 2018.

$2 Million Threshold. The rule would amend FAR 15.403-4 to implement the new threshold. For changes or modifications to a prime contract that was entered before July 1, 2018, the threshold remains $750,000. However, upon the request of a contractor that was required to submit CCPD in connection with a prime contract entered before that date, the contracting officer must modify the contract without requiring consideration to reflect a $2 million threshold for obtaining CCPD from subcontractors. The same exception also applies to sealed bidding. The rule would also amend FAR 14.201-7, FAR 15.408, and FAR 30.201-4, and the clauses at FAR 52.214-28, FAR 52.215-12, FAR 52.215-13, FAR 52.230-1, FAR 52.230-2, FAR 52.230-3, and FAR 52.230-5. Comments on the proposed rule, identified by FAR Case 2018-005, are due December 2, 2019. See ¶70,006.347 for the text of the rule.

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