siwilliams Posted March 21, 2014 Report Share Posted March 21, 2014 Can anyone give me an example of the application of the FAR 15.403-2(b )exception? We're expecting a contract modification for increases related to Cost Growth (changes to specs) and Overruns (rate changes mostly). I believe we need to certify cost and pricing data but I want to make sure. It was a competitive award originally, CPFF. I'm confused, however, with the FAR exception above. Link to comment Share on other sites More sharing options...
Guest Vern Edwards Posted March 21, 2014 Report Share Posted March 21, 2014 FAR 15.403-2( b ) applies when the actual cost of specified work under a cost-reimbursement contract exceeds either the estimated cost of a fully funded contract or the amount allotted to an incrementally funded contract for that work (an overrun). In that circumstance, certified cost or pricing data are not required. It also applies when the actual cost of specified work under a T&M or labor-hour contract exceeds the ceiling price. FAR 15.403-2( b ) does not apply when the actual cost exceeds the estimated cost or the amount allotted because work has been added to the contract (cost growth). In that circumstance, certified cost or pricing data are required if the conditions in FAR 15.403-4 are met. It also does not apply when the actual cost of a T&M or labor-hour contract exceeds the ceiling price because work has been added. When actual cost exceeds estimated cost, or the amount allotted, or the ceiling price due to a combination of the two causes, the amounts attributable to each cause must be determined and segregated in order to determine whether certified cost or pricing data are required. Link to comment Share on other sites More sharing options...
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