During a proposal, the CO is not allowing the Subcontractor to submit its full cost build-up (showing salaries, indirect costs, and fee) directly to the Government, as is standard practice. The CO is basically forcing the Subcontractor to share its proprietary pricing data with the Prime if they want to bid on this work as a team, even though the Subcontractor would prefer to hide its detailed cost build-up from the Prime and only share its fully loaded rates.
Other than F5.404-3(c) (1) and (2), which only deal with certified cost or pricing data, I haven't found a regulation which addresses this. The FAR clause I mentioned specifically allows Subs to submit their pricing to the Government directly. Any insights?