Cost Overrun FAR 52.232-20

[joel hoffman]

On 5/19/2023 at 1:42 PM, CharterParty said:

I am drawn to FAR 15.403-1(b)(Assuming base award most likely utilized FAR 15), "The CO shall not require certified cost or pricing data to support any action(Contracts, subcontracts, or modifications)(but may require data other than certified cost or pricing as defined in FAR 2.101 to support a determination of a fair and reasonable price or cost realism)" to help tamp down agency requests.  Again, I don't see the value in anything like a detailed 15.404 analysis. 

Regarding your concerns expressed here and to me, see:

“15.403-2 Other circumstances where certified cost or pricing data are not required.

…(b)  Certified cost or pricing data are not required for proposals used solely for overrun funding or interim billing price adjustments.”

[carosyrup]

On 5/22/2023 at 12:14 PM, joel hoffman said:

Regarding your concerns expressed here and to me, see:

“15.403-2 Other circumstances where certified cost or pricing data are not required.

…(b)  Certified cost or pricing data are not required for proposals used solely for overrun funding or interim billing price adjustments.”

I may be asking a stupid question but when would a contractor submit a proposal for an overrun? In reading this thread, it doesn't sound like it's a common practice and as others have mentioned in this thread, there's no specific requirement for a contracting officer to get a proposal from a contractor for a cost overrun.

FAR 32.704(a)(1)(ii) mentions that the contractor should submit a proposal for an adjustment of fee (I assume this relates to a CPFF LOE or "term" type of contract since the FAR addresses terminations in paragraph (a)(1)(iii) of the same subpart) so I'm wondering if 15.403-2(b) could be pointing to this as far as a proposal goes.

FAR 15.403-4(a)(1) says "The contracting officer shall obtain certified cost or pricing data only if the contracting officer concludes that none of the exceptions in 15.403-1(b) applies." FAR 15.403-1(b) is the five well-known exceptions for which certified cost or pricing data are not required. 

Assume a contracting officer modifies a contract to increase the funding and estimated cost by $2.4M because of a cost overrun and the contractor did not submit a proposal. It appears as though the contracting officer is required to obtain certified cost or pricing data regardless of whether the contractor submitted a proposal because FAR 15.403-4(a)(1) requires it unless there's an exception at 15.403-1(b).

Could you also infer that by virtue of being required to obtain certified cost or pricing data that the contracting officer is also required to do something with that data, like evaluate it, rely upon it during negotiations, base a determination of fair and reasonable on it? Otherwise, what would be the reason for requiring it?