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May an Agency require the submission of a certificate of cost or pricing pursuant to FAR 15.403-4 when modifying the contract due to overruns that nearly double the original price of the award. (FAR 15.403-2 says cost or pricing data are not required for proposals soley used for overrun funding). The original K was issued pursuant to a BAA. The first overrun proposal was approximately 50% of the original price. This overrun was incorporated into a mod subject to downward negotiations at time of definitization. During the course of negotiations, the contractor informed that a second overrun had occurred. The 2nd proposal was also incorporated into a modification subject to downward negotiations. With this second overrun the price nearly doubled from the original award. Once this is definitized may the agency require a certificate with the confirmation of negotiations.

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May an Agency require the submission of a certificate of cost or pricing pursuant to FAR 15.403-4 when modifying the contract due to overruns that nearly double the original price of the award. (FAR 15.403-2 says cost or pricing data are not required for proposals soley used for overrun funding). The original K was issued pursuant to a BAA. The first overrun proposal was approximately 50% of the original price. This overrun was incorporated into a mod subject to downward negotiations at time of definitization. During the course of negotiations, the contractor informed that a second overrun had occurred. The 2nd proposal was also incorporated into a modification subject to downward negotiations. With this second overrun the price nearly doubled from the original award. Once this is definitized may the agency require a certificate with the confirmation of negotiations.

If the modification results in a cumulative change in excess of $650,000, the answer is yes.

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Guest Vern Edwards
May an Agency require the submission of a certificate of cost or pricing pursuant to FAR 15.403-4 when modifying the contract due to overruns that nearly double the original price of the award. (FAR 15.403-2 says cost or pricing data are not required for proposals soley used for overrun funding). The original K was issued pursuant to a BAA. The first overrun proposal was approximately 50% of the original price. This overrun was incorporated into a mod subject to downward negotiations at time of definitization. During the course of negotiations, the contractor informed that a second overrun had occurred. The 2nd proposal was also incorporated into a modification subject to downward negotiations. With this second overrun the price nearly doubled from the original award. Once this is definitized may the agency require a certificate with the confirmation of negotiations.

Your post is confusing.

I assume that the contract is cost-reimbursement. I also assume that you are not changing the statement of work and/or specification, but making an adjustment to the estimated cost under the Limitation of Cost clause or to the estimated cost or funds allotted under the Limitation of Funds clause in recognition of a cost overrun. If that is what you are doing, then you are not required to obtain (if you are the government) or submit (if you are the contractor) cost or pricing data. I don't know what you mean by an "overrun proposal." What is that? Is the contractor proposing something or is it reporting or estimating the amount of an overrun? What are you negotiating? The only thing that I think you could be negotiating is whether a cost is allowable pursuant to FAR Subpart 31.2 or your indirect cost billing rates. You are not required to obtain or submit cost or pricing data for that purpose. If, on the other hand, you are negotiating some change to the statement of work and/or specification, and the contractor is proposing an equitable adjustment, then you may have to obtain or submit cost or pricing data in accordance with FAR 15.403.

However, I am not sure that I understand what you are doing. What do you mean when you say, "This overrun was incorporated into a mod subject to downward negotiations at time of definitization"? What do you mean by "incorporating"? What were you definitizing? You don't definitize overruns. Downward adjustments for what?

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