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Background: Genereic situation: A prime contractor is awarded a contract based on competition. As such, requirements for cost and pricing data (FAR 52.215) do not apply to the prime contractor. However, the contractor is awarding subcontracts.

Question:In such a scenario, if the prime contract does not include the clauses at FAR 52.215 requiring cost and pricing data, is the prime contractor still required to obtain cost or pricing data for non-commercial items over $650,000 from subcontractors? Does the answer differ if the subcontractor was identified as a teammate in the prime contractor s proposal against which the contract was awarded? I read FAR Part 15 and FAR 15.404-3, says the contractor is required to do cost analysis, but it does not condition that only when required in our contract. However, the law, 10 U.S.C. 2306(a)(1)©, seems to say the requirement for cost or pricing data is only required if it was required of the contractor, which seems to say that if the requirement is not in our contract, that we do not need to require it of our subcontractors/suppliers. So it is not clear if this addresses the situation where our company is awarded a contract based on competition (thus excluding us from cost and pricing data), but where our subcontractor/supplier was a single/sole source award. Or whether the answer differs if the subcontractor was identified as a teammate in the prime contractor s proposal against which the contract was awarded?

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In such a scenario, if the prime contract does not include the clauses at FAR 52.215 requiring cost and pricing data, is the prime contractor still required to obtain cost or pricing data for non-commercial items over $650,000 from subcontractors?

No. See FAR 15.403-4(a)(1)(ii).

Does the answer differ if the subcontractor was identified as a teammate in the prime contractor s proposal against which the contract was awarded?

No.

I read FAR Part 15 and FAR 15.404-3, says the contractor is required to do cost analysis, but it does not condition that only when required in our contract.

Read it again. It does not require the prime contractor to perform cost analysis on all subcontracts.

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