Certified Cost or Pricing Data

[LeighHar]

We are requesting documentation from a subcontractor in the form of a Certificate of Current Cost or Pricing Data (btw, not required from us as the Prime from the government) but we in compliance with our procurement policy.  My take on the date listed in the certificate is that it should be dated as close to date the final subcontract is signed as possible.  We had a sub that completed the certificate recently and dated it from (are accurate, complete and current as of) August 2022, when they had submitted their prices to us for inclusion in our proposal.  Our policy is silent on the date, but I want to get the community's input on this.  The budget/theri prices did not change from their original submission/inclusion in our proposal and we are working on the details of their subcontract now.  For auditing and compliance purposes, shouldn't the certificate be dated from today/recent date and not the date of their original submission?

[Retreadfed]

As you indicated, the statutory and FAR requirements for submission of certified cost or pricing data are not applicable in this circumstance.  Instead, you are asking for the certificate of current cost or pricing data as a matter of policy (I presume that you did require the sub to submit such data).  Because this is a matter of company policy, you can set the certification date at any date you want and can get away with from your subs.  BTW if the FAR did apply, you and the sub would both be wrong.  See, FAR 15.403-4(b)(2).

[LeighHar]

Thanks Retreadfed!

So based on this, if prices did not change from the subcontractor's submission of their prices (nearly a year ago) that were included in our proposal and subsequent contract awarded by the government, my interpretation is that they actually were not wrong to include this date (original submisison date of their budget) in the certified cost or pricing form.  We did not require them to submit this certification at the time of the proposal (although I think we need to consider modifying our internal requirements for the pre-award/solicitation phase), we are asking for it now at the time we are preparing their subcontract as part of the approval packet.

[Vern Edwards]

@LeighHar

Wait a minute!

1. What are you pricing? A new subcontract or a subcontract modification?
2. Does your contract with the government include the clause at FAR 52.215-12 or -13?
3. If so, is the sub's proposed price greater than the TINA dollar threshold when you signed your government contract?

What I want to know is whether your government contract requires you to obtain certified cost or pricing data from the sub in this instance. I am unable to determine that from your posts.

If you want a further response, please answer my three questions.

[Retreadfed]

59 minutes ago, LeighHar said:

So based on this, if prices did not change from the subcontractor's submission of their prices (nearly a year ago) that were included in our proposal and subsequent contract awarded by the government, my interpretation is that they actually were not wrong to include this date (original submisison date of their budget) in the certified cost or pricing form. 

As you have stated, the certification in this case is required by company policy, not a government contract or solicitation.  Because I do not know what your company policy actually says, I cannot answer your question.  However, remember, a certificate of current certified cost or pricing data, relates to cost or pricing data, not a proposed price.  The fact that the sub's pricing did not change doesn't mean that the cost or pricing data did not change.

[Neil Roberts]

FAR 15.406-2 Certificate states as follows:

***Insert the day, month, and year of signing, which should be as close as practicable to the date when the price negotiations were concluded and the contract price was agreed to.

Edited May 29, 2023 by Neil Roberts
bad cite. is FAR 15.406-2, not 16.406-2.

[joel hoffman]

Just curious, what is the language, if any, in your subcontracts concerning the company requirement for certified cost or pricing data and what remedy action is available for “defective” or otherwise incorrect cost or pricing data? 

[Neil Roberts]

Hi Joel:

FAR 52.215-12 and -13 is flowed when incorporated into the customer's contract, with an alteration that substitutes company or its representative for Contracting Officer or its representative.

FAR 52.215-10 is flowed when incorporated into the customer's contract, with alteration that  adds "or Buyer" after "Government", "Contracting Officer" or "United States." In addition, company flows a standard term that it may recover from subcontractor an amount equal to related price reduction of company's contract with the customer and any penalty or interest.