If one has an active $1m+ contract (DoD, R&D, CPFF) in place, would a new Certificate of Current Cost or Pricing Data be required for a $200k mod?

My reading of FAR 15.406-2 indicates, that, YES, once the contract (generally over $650k) requires the Cert, any mods relating to funds (+ or -) would require a Cert.

Appreciate any responses. thank you.

If one has an active $1m+ contract (DoD, R&D, CPFF) in place, would a new Certificate of Current Cost or Pricing Data be required for a $200k mod?

My reading of FAR 15.406-2 indicates, that, YES, once the contract (generally over $650k) requires the Cert, any mods relating to funds (+ or -) would require a Cert.

Appreciate any responses. thank you.

As the threshold for obtaining cost or pricing data is $650,000, you need not obtain either the data or the certificate. See FAR 15.403-4 (a).

You need to keep in mind that the $650k are based on the total of the change. If the mod included a reduction of $500k and an increase of $200k the total would exceed the $650 and require a certificate.

If one has an active $1m+ contract (DoD, R&D, CPFF) in place, would a new Certificate of Current Cost or Pricing Data be required for a $200k mod?

My reading of FAR 15.406-2 indicates, that, YES, once the contract (generally over $650k) requires the Cert, any mods relating to funds (+ or -) would require a Cert.

Appreciate any responses. thank you.

You would not need to certify the $200,000 change unless pluses and minuses (added work and deleted work) exceeded $650,000 when added together. For example, if $200,000 in new work was added and $500,000 in original work was deleted, you would have to provide a new certification

If one has an active $1m+ contract (DoD, R&D, CPFF) in place, would a new Certificate of Current Cost or Pricing Data be required for a $200k mod?

My reading of FAR 15.406-2 indicates, that, YES, once the contract (generally over $650k) requires the Cert, any mods relating to funds (+ or -) would require a Cert.

Appreciate any responses. thank you.

How did you interpret 15.406-2 to require a "new Certificate" due to a mod that would be under the Cost or Pricing Threshold?

Per 15.400, the scope of subpart 15.4 "prescribes the cost and price negotiation policies and procedures for pricing negotiated prime contracts (including subcontracts) and contract modifications..."

Per 15.403-4 (a)(1), cost or price data are required before accomplishing any of the following actions expected to exceed the threshold specified in the contract. This means that the action itself must exceed the C&P Threshold. Nowhere does it say an action which causes the contract amount to exceed the C&P threshold requires an updated Certificate of Cost or Pricing.

Then paragraph (iii) cites modifications, "The modification of any sealed bid or negotiated contract (whether or not cost or pricing data were initially required..." It goes on to say that the price adjustment must consider both increases and decreases, unless the mod is for separately priced, unrelated changes combined into one mod for administrative convenience. This means that the absolute value of a $200k mod resulting from related reductions of $500k and increase of $300k ($800k), exceeds the current Threshold of $650k.

This is not a "new certificate for the contract". It is a separate Certificate for the separate action.

Does this help you?

All, tx for the unanimous replies. Unfortunately, they run counter to the wishes of the Contracting Officer, and I will (because he holds the $$) provide a cert. That said, I have also, in a gentle, academic sort of way, referred him to the actual FAR requirements.

BC

All, tx for the unanimous replies. Unfortunately, they run counter to the wishes of the Contracting Officer, and I will (because he holds the $$) provide a cert. That said, I have also, in a gentle, academic sort of way, referred him to the actual FAR requirements.

BC

I think my post crossed yours in the ether.

I think my post crossed yours in the ether.

I dont think that the KO knows what his interpretation would literally mean. Does he mean to provide a separate certification for a $200k mod? Or does he mean a "new" certification for the entire contract amount, including the mod?

The first makes no sense because the mod action is below the threshold for Cost or Pricing Data

So, to be over the TINA threshold, do you include the original contract value in the Certificate? that is more nonsensical because the Certificate would then include all previously performed and to-go work.

You aren't going to renegotiate the base contract each time you mod the contract.

a "new" Certificate would involve a major effort to capture all actual costs to date to determine the factual information. Then what purpose is served to include the future cost of the unchanged work? Are you going to renegotiate the base contract? NO! Once a FFP contract is signed, the contractor has the risk to perform the work for the previously agreed price. For a cost contract, there is a tremendous amount of work involved to audit or account for actuals to date and to validate or update the remaining work, similar to an effort to develop an updated estimated cost at completion.

From my experience, just the corporate scrub process after negotiations are complete with the big boys like Bechtel involves a major corporate effort and expense, let alone having to redo one each time there is a mod!

At any rate, the FAR is pretty clear for once that the purpose is for negotiations and the amount of the "action" determines whether a Certificate of Current Cost or Pricing is necessary.