FAR 52.214-27 - Price Reduction for Defective Certified Cost or Pricing Data-Modifications-Sealed Bidding
Prescribed in 14.201-7(b)(1) | ||
Effective Date: | 1 October 1997 | |
Clause or Provision: | Clause | |
Provision or Clause Number: | 52.214-27 - Price Reduction for Defective Certified Cost or Pricing Data-Modifications-Sealed Bidding | |
Principle Type And/Or Purpose of Contract: | ||
Required: | ||
Applicable: | Dismantling, Demolition or Removal of Improvements; Communication Services; Leasing of Motor Vehicles; Fixed Price, Construction; Fixed Price, Service; Indefinite Delivery; Transportation | |
Optional: | Utility Services; Simplified Acquisition Procedures (Excludes Micro-Purchase); Facilities; Time & Material/Labor Hour; Cost Reimbursement, Construction; Cost Reimbursement, Supply; Cost Reimbursement, Service | |
Subject: | Certified Cost or Pricing Data and/or Data other than Certified | |
ProcurementType: | Sealed Bidding | |
Contract Threshold: | >750,000 | |
Prescription Overview: |
Prescription(b)(1) When contracting by sealed bidding, the contracting officer shall insert the clause at 52.214-27, Price Reduction for Defective Certified Cost or Pricing Data—Modifications—Sealed Bidding, in solicitations and contracts if the contract amount is expected to exceed the threshold for submission of certified cost or pricing data at 15.403-4(a)(1). (2) In exceptional cases, the head of the contracting activity may waive the requirement for inclusion of the clause in a contract with a foreign government or agency of that government. The authorizations for the waiver and the reasons for granting it shall be in writing. | |
Clause Overview: |
Clause(a) This clause shall become operative only for any modification to this contract involving aggregate increases and/or decreases in costs, plus applicable profits, expected to exceed the threshold for the submission of certified cost or pricing data at FAR 15.403-4(a)(1), except that this clause does not apply to a modification if an exception under FAR 15.403-1(b) applies.
(i) The Contractor or subcontractor was a sole source supplier or otherwise was in a superior bargaining position and thus the price of the contract would not have been modified even if accurate, complete, and current certified cost or pricing data had been submitted. (ii) The Contracting Officer should have known that the certified cost or pricing data in issue were defective even though the Contractor or subcontractor took no affirmative action to bring the character of the data to the attention of the Contracting Officer. (iii) The contract was based on an agreement about the total cost of the contract and there was no agreement about the cost of each item procured under the contract. (iv) The Contractor or subcontractor did not submit a Certificate of Current Cost or Pricing Data. (2)(i) Except as prohibited by subdivision (d)(2)(ii) of this clause, an offset in an amount determined appropriate by the Contracting Officer based upon the facts shall be allowed against the amount of a contract price reduction if— (A) The Contractor certifies to the Contracting Officer that, to the best of the Contractor’s knowledge and belief, the Contractor is entitled to the offset in the amount requested; and (B) The Contractor proves that the certified cost or pricing data were available before the date of agreement on the price of the contract (or price of the modification) and that the data were not submitted before such date. (ii) An offset shall not be allowed if— (A) The understated data was known by the Contractor to be understated when the Certificate of Current Cost or Pricing Data was signed; or (B) The Government proves that the facts demonstrate that the contract price would not have increased in the amount to be offset even if the available data had been submitted before the date of agreement on price.
(1) Interest compounded daily, as required by 26 U.S.C. 6622, the amount of such overpayment to be computed from the date(s) of overpayment to the Contractor to the date the Government is repaid by the Contractor at the applicable underpayment rate effective for each quarter prescribed by the Secretary of the Treasury under 26 U.S.C. 6621(a)(2); and (2) A penalty equal to the amount of the overpayment, if the Contractor or subcontractor knowingly submitted certified cost or pricing data which were incomplete, inaccurate, or noncurrent. | |
Important Notes/Requirements: |
NotesThis clause shall become operative only for any modification to This contract involving aggregate increases and/or decreases in costs, plus applicable profits, expected to exceed the threshold for the submission of certified cost or pricing data. | |
Subcontract Threshold: | >750,000 | |
Incorporated by Reference: | Yes | |
Uniform Contract Format: | I | |
Editor: | Marshall |
Personal notes.