Difference between revisions of "FAR 52.215-10 - Price Reduction for Defective Certified Cost or Pricing Data"
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'''(a)''' If any price, including profit or fee, negotiated in connection with this contract, or any cost reimbursable under this contract, was increased by any significant amount because— | '''(a)''' If any price, including profit or fee, negotiated in connection with this contract, or any cost reimbursable under this contract, was increased by any significant amount because— | ||
− | (1) The Contractor or a subcontractor furnished certified cost or pricing data that were not complete, accurate, and current as certified in its Certificate of Current Cost or Pricing Data; | + | (1) The Contractor or a subcontractor furnished certified cost or pricing data that were not complete, accurate, and current '''as certified in its Certificate''' of Current Cost or Pricing Data; |
− | (2) A subcontractor or prospective subcontractor furnished the Contractor certified cost or pricing data that were not complete, accurate, and current as certified in the Contractor’s Certificate of Current Cost or Pricing Data; or | + | (2) A subcontractor or prospective subcontractor furnished the Contractor certified cost or pricing data that were not complete, accurate, and current '''as certified in the Contractor’s Certificate''' of Current Cost or Pricing Data; or |
(3) Any of these parties furnished data of any description that were not accurate, the price or cost shall be reduced accordingly and the contract shall be modified to reflect the reduction. | (3) Any of these parties furnished data of any description that were not accurate, the price or cost shall be reduced accordingly and the contract shall be modified to reflect the reduction. |
Revision as of 12:04, 18 July 2014
Prescribed in 15.408(b) | ||
Effective Date: | 1 October 1997 | |
Clause or Provision: | Clause | |
Provision or Clause Number: | 52.215-10 - Price Reduction for Defective Certified Cost or Pricing Data | |
Principle Type And/Or Purpose of Contract: | ||
Required: | ||
Applicable: | Time and Materials/Labor Hour; Leasing of Motor Vehicles; Communication Services; Dismantling, Demolition, or Removal of Improvements; Architect-Engineering; Facilities; Indefinite Delivery; Transportation; Utility Services; Facilities; Architect-Engineering; Dismantling, Demolition or Removal of Improvements; Fixed Price, Supply; Cost Reimbursement, Supply; Communication Services; Leasing of Motor Vehicles; "Time & Labor/Labor Hour" is not in the list of possible values (Facilities, Architect-Engineering, Dismantling, Demolition or Removal of Improvements, Fixed Price, Supply, Cost Reimbursement, Supply, Communication Services, Leasing of Motor Vehicles, Time & Material/Labor Hour, Cost Reimbursement, Construction, Fixed Price, Construction, Cost Reimbursement, Service, Fixed Price, Service, Cost Reimbursement, R&D, Fixed Price, R&D, Indefinite Delivery, Transportation, Simplified Acquisition Procedures (Excludes Micro-Purchase), Utility Services, Commercial Items) for this property.; Cost Reimbursement, Construction; Fixed Price, Construction; Cost Reimbursement, Service; Fixed Price, Service; Cost Reimbursement, R&D; Fixed Price, R&D; Indefinite Delivery; Transportation; Utility Services | |
Optional: | Simplified Acquisition Procedures (Excludes Micro-Purchase) | |
Subject: | Category:Truth In Negotiations Act (TINA) | |
ProcurementType: | ||
Contract Threshold: | >700,000 | |
Prescription Overview: |
Prescription(b) Price Reduction for Defective Certified Cost or Pricing Data. The contracting officer shall, when contracting by negotiation, insert the clause at 52.215-10, Price Reduction for Defective Certified Cost or Pricing Data, in solicitations and contracts when it is contemplated that certified cost or pricing data will be required from the contractor or any subcontractor (see 15.403-4). FAR 15.403-4 Requiring Certified Cost or Pricing Data(a) (1) 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. However, if the contracting officer has reason to believe exceptional circumstances exist and has sufficient data available to determine a fair and reasonable price, then the contracting officer should consider requesting a waiver under the exception at 15.403-1(b)(4). The threshold for obtaining certified cost or pricing data is $700,000. Unless an exception applies, certified cost or pricing data are required before accomplishing any of the following actions expected to exceed the current threshold or, in the case of existing contracts, the threshold specified in the contract:
(1) The certified cost or pricing data and data other than certified cost or pricing data required by the contracting officer to determine that the price is fair and reasonable. (2) A Certificate of Current Cost or Pricing Data, in the format specified in 15.406-2, certifying that to the best of its knowledge and belief, the cost or pricing data were accurate, complete, and current as of the date of agreement on price or, if applicable, an earlier date agreed upon between the parties that is as close as practicable to the date of agreement on price.
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Clause Overview: |
ClauseIncrease Contract Price(a) If any price, including profit or fee, negotiated in connection with this contract, or any cost reimbursable under this contract, was increased by any significant amount because— (1) The Contractor or a subcontractor furnished certified cost or pricing data that were not complete, accurate, and current as certified in its Certificate of Current Cost or Pricing Data; (2) A subcontractor or prospective subcontractor furnished the Contractor certified cost or pricing data that were not complete, accurate, and current as certified in the Contractor’s Certificate of Current Cost or Pricing Data; or (3) Any of these parties furnished data of any description that were not accurate, the price or cost shall be reduced accordingly and the contract shall be modified to reflect the reduction. Subcontract Cost Reduction(b) Any reduction in the contract price under paragraph (a) of this clause due to defective data from a prospective subcontractor that was not subsequently awarded the subcontract shall be limited to the amount, plus applicable overhead and profit markup, by which (1) the actual subcontract or
Contractor Agrees Not to Use Certain Defenses(c) (1) If the Contracting Officer determines under paragraph (a) of this clause that a price or cost reduction should be made, the Contractor agrees not to raise the following matters as a defense:
(2) - Offsets
(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 “as of” date specified on its Certificate of Current Cost or Pricing Data, and that the data were not submitted before such date. (ii) An offset shall not be allowed if— (A) The understated data were known by the Contractor to be understated before the “as of” date specified on its Certificate of Current Cost or Pricing Data; 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 “as of” date specified on its Certificate of Current Cost or Pricing Data. Repayment(d) If any reduction in the contract price under this clause reduces the price of items for which payment was made prior to the date of the modification reflecting the price reduction, the Contractor shall be liable to and shall pay the United States at the time such overpayment is repaid— Interest Compounded Daily(1) Interest compounded daily, as required by 26 U.S.C. 6622, on 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 Penalty(2) A penalty equal to the amount of the overpayment, if the Contractor or subcontractor knowingly submitted certified cost or pricing data that were incomplete, inaccurate, or noncurrent. | |
Important Notes/Requirements: |
Bold textApplicable to sole source awards that are not exempt or no exception applies. | |
Subcontract Threshold: | >700,000 | |
Incorporated by Reference: | Yes | |
Uniform Contract Format: | I | |
Editor: | Marshall |
Personal notes.