Defense Federal Acquisition Regulation Supplement
Part 252—Solicitation Provisions and Contract Clauses
(Revised October 31, 2013)
252.215-7000 Pricing Adjustments.
As prescribed in 215.408(1), use the following clause:
PRICING ADJUSTMENTS (DEC 2012)
The term “pricing adjustment,” as used in paragraph (a) of the clauses entitled “Price
Reduction for Defective Certified Cost or Pricing Data–Modifications,” “Subcontractor Certified Cost or Pricing Data,” and “Subcontractor Certified Cost or Pricing Data–
Modifications,” means the aggregate increases and/or decreases in cost plus applicable profits.
(End of clause)
252.215-7001 Reserved.
252.215-7002 Cost Estimating System Requirements.
As prescribed in 215.408(2), use the following clause:
COST ESTIMATING SYSTEM REQUIREMENTS (DEC 2012)
(a) Definitions.
“Acceptable estimating system” means an estimating system that complies with the
system criteria in paragraph (d) of this clause, and provides for a system that—
(1) Is maintained, reliable, and consistently applied;
(2) Produces verifiable, supportable, documented, and timely cost estimates
that are an acceptable basis for negotiation of fair and reasonable prices;
(3) Is consistent with and integrated with the Contractor’s related management systems; and
(4) Is subject to applicable financial control systems.
“Estimating system” means the Contractor's policies, procedures, and practices for
budgeting and planning controls, and generating estimates of costs and other data
included in proposals submitted to customers in the expectation of receiving contract awards. Estimating system includes the Contractor's—
(1) Organizational structure;
(2) Established lines of authority, duties, and responsibilities;
(3) Internal controls and managerial reviews;
(4) Flow of work, coordination, and communication; and
(5) Budgeting, planning, estimating methods, techniques, accumulation of
historical costs, and other analyses used to generate cost estimates.
“Significant deficiency” means a shortcoming in the system that materially affects the
ability of officials of the Department of Defense to rely upon data and information produced by the system that is needed for management purposes.
(b) General. The Contractor shall establish, maintain, and comply with an acceptable estimating system.
(c) Applicability. Paragraphs (d) and (e) of this clause apply if the Contractor is a large business and either—
(1) In its fiscal year preceding award of this contract, received Department of Defense (DoD) prime contracts or subcontracts, totaling $50 million or more for which
certified cost or pricing data were required; or
(2) In its fiscal year preceding award of this contract—
(i) Received DoD prime contracts or subcontracts totaling $10 million or
more (but less than $50 million) for which certified cost or pricing data were required;
and
(ii) Was notified, in writing, by the Contracting Officer that paragraphs (d)
and (e) of this clause apply.
(d) System requirements.
(1) The Contractor shall disclose its estimating system to the Administrative Contracting Officer (ACO), in writing. If the Contractor wishes the
Government to protect the data and information as privileged or confidential, the
Contractor must mark the documents with the appropriate legends before submission.
(2) An estimating system disclosure is acceptable when the Contractor has provided the ACO with documentation that—
(i) Accurately describes those policies, procedures, and practices that the Contractor currently uses in preparing cost proposals; and
(ii) Provides sufficient detail for the Government to reasonably make an informed judgment regarding the acceptability of the Contractor's estimating practices.
(3) The Contractor shall—
(i) Comply with its disclosed estimating system; and
(ii) Disclose significant changes to the cost estimating system to the ACO on a timely basis.
(4) The Contractor’s estimating system shall provide for the use of appropriate source data, utilize sound estimating techniques and good judgment, maintain a consistent approach, and adhere to established policies and procedures. An acceptable estimating system shall accomplish the following functions:
(i) Establish clear responsibility for preparation, review, and approval of
cost estimates and budgets.
(ii) Provide a written description of the organization and duties of the personnel responsible for preparing, reviewing, and approving cost estimates and
budgets.
(iii) Ensure that relevant personnel have sufficient training, experience, and guidance to perform estimating and budgeting tasks in accordance with the
Contractor's established procedures.
(iv) Identify and document the sources of data and the estimating methods
and rationale used in developing cost estimates and budgets.
(v) Provide for adequate supervision throughout the estimating and
budgeting process.
(vi) Provide for consistent application of estimating and budgeting
techniques.
(vii) Provide for detection and timely correction of errors.
(viii) Protect against cost duplication and omissions.
(ix) Provide for the use of historical experience, including historical vendor
pricing data, where appropriate.
(x) Require use of appropriate analytical methods.
(xi) Integrate data and information available from other management
systems.
(xii) Require management review, including verification of compliance with the company's estimating and budgeting policies, procedures, and practices.
(xiii) Provide for internal review of, and accountability for, the acceptability of the estimating system, including the budgetary data supporting indirect cost estimates and comparisons of projected results to actual results, and an analysis of any
differences.
(xiv) Provide procedures to update cost estimates and notify the
Contracting Officer in a timely manner throughout the negotiation process.
(xv) Provide procedures that ensure subcontract prices are reasonable based on a documented review and analysis provided with the prime proposal, when
practicable.
(xvi) Provide estimating and budgeting practices that consistently generate sound proposals that are compliant with the provisions of the solicitation and are
adequate to serve as a basis to reach a fair and reasonable price.
(xvii) Have an adequate system description, including policies, procedures, and estimating and budgeting practices, that comply with the Federal Acquisition
Regulation and Defense Federal Acquisition Regulation Supplement.
(e) Significant deficiencies. (1) The Contracting Officer will provide an initial determination to the Contractor, in writing, of any significant deficiencies. The initial determination will describe the deficiency in sufficient detail to allow the Contractor to understand the deficiency.
(2) The Contractor shall respond within 30 days to a written initial determination from the Contracting Officer that identifies significant deficiencies in the Contractor's estimating system. If the Contractor disagrees with the initial determination, the Contractor shall state, in writing, its rationale for disagreeing.
(3) The Contracting Officer will evaluate the Contractor's response and notify the Contractor, in writing, of the Contracting Officer’s final determination concerning—
(i) Remaining significant deficiencies;
(ii) The adequacy of any proposed or completed corrective action; and
(iii) System disapproval, if the Contracting Officer determines that one or more significant deficiencies remain.
(f) If the Contractor receives the Contracting Officer’s final determination of significant deficiencies, the Contractor shall, within 45 days of receipt of the final determination, either correct the significant deficiencies or submit an acceptable corrective action plan showing milestones and actions to eliminate the significant deficiencies.
(g) Withholding payments. If the Contracting Officer makes a final determination to disapprove the Contractor’s estimating system, and the contract includes the clause at 252.242-7005, Contractor Business Systems, the Contracting Officer will withhold payments in accordance with that clause.
(End of clause)
252.215-7003 Requirement for Submission of Data Other Than Certified Cost or Pricing Data—Canadian Commercial Corporation.
As prescribed at 215.408(3)(i), use the following provision:
REQUIREMENT FOR SUBMISSION OF DATA OTHER THAN CERTIFIED COST OR PRICING DATA—CANADIAN COMMERCIAL CORPORATION (JUL 2012)
(a) Submission of certified cost or pricing data is not required.
(b) Canadian Commercial Corporation shall obtain and provide the following:
(i) Profit rate or fee (as applicable).
(ii) Analysis provided by Public Works and Government Services Canada to the Canadian Commercial Corporation to determine a fair and reasonable price (comparable to the analysis required at FAR 15.404-1).
(iii) Data other than certified cost or pricing data necessary to permit a determination by the U.S. Contracting Officer that the proposed price is fair and reasonable [U.S. Contracting Officer to insert description of the data required in accordance with FAR 15.403-3(a)(1)].
(c) As specified in FAR 15.403-3(a)(4), an offeror who does not comply with a requirement to submit data that the U.S. Contracting Officer has deemed necessary to determine price reasonableness or cost realism is ineligible for award unless the head of the contracting activity determines that it is in the best interest of the Government to make the award to that offeror.
(End of provision)
252.215-7004 Requirement for Submission of Data Other Than Certified Cost or Pricing Data—Modifications—Canadian Commercial Corporation.
As prescribed at 215.408(3)(ii), use the following clause:
REQUIREMENT FOR SUBMISSION OF DATA OTHER THAN CERTIFIED COST OR PRICING DATA—MODIFICATIONS—CANADIAN COMMERCIAL
CORPORATION (OCT 2013)
This clause , in lieu of FAR 52.215-21, applies only if award is to the Canadian Commercial Corporation.
(a) Submission of certified cost or pricing data is not required.
(b) Canadian Commercial Corporation shall obtain and provide the following for
modifications that exceed the $150,000 [or higher dollar value specified by the U.S.
Contracting Officer in the solicitation].
(i) Profit rate or fee (as applicable).
(ii) Analysis provided by Public Works and Government Services Canada to the Canadian Commercial Corporation to determine a fair and reasonable price (comparable to the analysis required at FAR 15.404-1).
(iii) Data other than certified cost or pricing data necessary to permit a determination by the U.S. Contracting Officer that the proposed price is fair and reasonable [U.S. Contracting Officer to insert description of the data required in accordance with FAR 15.403-3(a)(1)].
(End of clause)
252.215-7005 Evaluation Factor for Employing or Subcontracting with Members of the Selected Reserve.
As prescribed in 215.370-3(a), use the following provision:
EVALUATION FACTOR FOR EMPLOYING OR SUBCONTRACTING WITH MEMBERS OF THE SELECTED RESERVE (OCT 2008)
(a) Definition. “Selected Reserve,” as used in this provision, has the meaning given that term in 10 U.S.C. 10143. Selected Reserve members normally attend regular drills throughout the year and are the group of Reserves most readily available to the President.
(b) This solicitation includes an evaluation factor that considers the offeror’s intended use of employees, or individual subcontractors, who are members of the Selected Reserve.
(c) If the offeror, in the performance of any contract resulting from this solicitation, intends to use employees or individual subcontractors who are members of the Selected Reserve, the offeror’s proposal shall include documentation to support this intent. Such documentation may include, but is not limited to—
(1) Existing company documentation, such as payroll or personnel records, indicating the names of the Selected Reserve members who are currently employed by the company; or
(2) A statement that one or more positions will be set aside to be filled by new hires of Selected Reserve members, along with verifying documentation.
(End of provision)
252.215-7006 Use of Employees or Individual Subcontractors Who are Members of the Selected Reserve.
As prescribed in 215.370-3(b), use the following clause:
USE OF EMPLOYEES OR INDIVIDUAL SUBCONTRACTORS WHO ARE MEMBERS OF THE SELECTED RESERVE (OCT 2008)
(a) Definition. “Selected Reserve,” as used in this clause, has the meaning given that term in 10 U.S.C. 10143. Selected Reserve members normally attend regular drills throughout the year and are the group of Reserves most readily available to the President.
(b) If the Contractor stated in its offer that it intends to use members of the Selected Reserve in the performance of this contract—
(1) The Contractor shall use employees, or individual subcontractors, who are members of the Selected Reserve in the performance of the contract to the fullest extent consistent with efficient contract performance; and
(2) The Government has the right to terminate the contract for default if the Contractor willfully or intentionally fails to use members of the Selected Reserve, as employees or individual subcontractors, in the performance of the contract.
(End of clause)
252.215-7007 Notice of Intent to Resolicit.
As prescribed at 215.371-6, use the following provision:
NOTICE OF INTENT TO RESOLICIT (JUN 2012)
This solicitation provides offerors fewer than 30 days to submit proposals. In the event that only one offer is received in response to this solicitation, the Contracting Officer may cancel the solicitation and resolicit for an additional period of at least 30 days in accordance with 215.371-2.
(End of provision)
252.215-7008 Only One Offer.
As prescribed at 215.408(4), use the following provision:
ONLY ONE OFFER (OCT 2013)
(a) After initial submission of offers, the Offeror agrees to submit any subsequently
requrested additional cost or pricing data if the Contracting Officer notifies the offeror
that—
(1) Only one offer was received; and
(2) Additional cost or pricing data is required in order to determine whether the price is fair and reasonable or to comply with the statutory requirement for certified cost or pricing data (10 U.S.C. 2306a and FAR 15.403-3).
(b) Requirement for submission of additional cost or pricing data.
Except as provided in paragraph (c) of this provision, the Offeror shall submit additional cost or pricing data as follows:
(1) If the Contracting Officer notifies the Offeror that additional cost or pricing data are required in accordance with paragraph (a) of this clause, the data shall be certified unless an exception applies (FAR 15.403-1(b)).
(2) Exceptions from certified cost or pricing data. In lieu of submitting certified cost or pricing data, the Offeror may submit a written request for exception by submitting the information described in the following paragraphs. The Contracting Officer may require additional supporting information, but only to the extent necessary to determine whether an exception should be granted, and whether the price is fair and reasonable.
(i) Identification of the law or regulation establishing the price offered. If the price is controlled under law by periodic rulings, reviews, or similar actions of a governmental body, attach a copy of the controlling document, unless it was previously submitted to the contracting office.
(ii) Commercial item exception. For a commercial item exception, the Offeror shall submit, at a minimum, information on prices at which the same item or/ similar items have previously been sold in the commercial market that is adequate for evaluating the reasonableness of the price for this acquisition. Such information may include—
(A) For catalog items, a copy of or identification of the catalog and its date, or the appropriate pages for the offered items, or a statement that the catalog is on file in the buying office to which the proposal is being submitted. Provide a copy or describe current discount policies and price lists (published or unpublished), e.g., wholesale, original equipment manufacturer, or reseller. Also explain the basis of each offered price and its relationship to the established catalog price, including how the proposed price relates to the price of recent sales in quantities similar to the proposed quantities;
(B) For market-priced items, the source and date or period of the market quotation or other basis for market price, the base amount, and applicable discounts. In addition, describe the nature of the market; or
(C) For items included on an active Federal Supply Service Multiple Award Schedule contract, proof that an exception has been granted for the schedule item.
(3) The Offeror grants the Contracting Officer or an authorized representative the right to examine, at any time before award, books, records, documents, or other directly pertinent records to verify any request for an exception under this provision, and the reasonableness of price. For items priced using catalog or market prices, or law or regulation, access does not extend to cost or profit information or other data relevant solely to the Offeror’s determination of the prices to be offered in the catalog or marketplace.
(4) Requirements for certified cost or pricing data. If the Offeror is not granted an exception from the requirement to submit certified cost or pricing data, the following applies:
(i) The Offeror shall prepare and submit certified cost or pricing data and supporting attachments in accordance with the instructions contained in Table 15-2 of FAR 15.408, which is incorporated by reference with the same force and effect as though it were inserted here in full text. The instructions in Table 15-2 are incorporated as a mandatory format to be used, unless the Contracting Officer and the Offeror agree to a different format.
(ii) As soon as practicable after agreement on price, but before contract award (except for unpriced actions such as letter contracts), the offeror shall submit a Certificate of Current Cost or Pricing Data, as prescribed by FAR 15.406-2.
(c) If the Offeror is the Canadian Commercial Corporation, certified cost or pricing data are not required. If the Contracting Officer notifies the Canadian Commercial Corporation that additional data other than certified cost or pricing data are required in accordance with 225.870-4(c), the Canadian Commercial Corporation shall obtain and provide the following:
(1) Profit rate or fee (as applicable).
(2) Analysis provided by Public Works and Government Services Canada to the Canadian Commercial Corporation to determine a fair and reasonable price (comparable to the analysis required at FAR 15.404-1).
(3) Data other than certified cost or pricing data necessary to permit a determination by the U.S. Contracting Officer that the proposed price is fair and reasonable [U.S. Contracting Officer to provide description of the data required in accordance with FAR 15.403-3(a)(1) with the notification].
(4) As specified in FAR 15.403-3(a)(4), an offeror who does not comply with a requirement to submit data that the U.S. Contracting Officer has deemed necessary to determine price reasonableness or cost realism is ineligible for award unless the head of the contracting activity determines that it is in the best interest of the Government to make the award to that offeror.
(d) If negotiations are conducted, the negotiated price should not exceed the offered price.
(End of provision)
252.215-7009 Proposal Adequacy Checklist.
As prescribed in 215.408(5), use the following provision:
PROPOSAL ADEQUACY CHECKLIST (MAR 2013)
The offeror shall complete the following checklist, providing location of requested information, or an explanation of why the requested information is not provided. In preparation of the offeror’s checklist, offerors may elect to have their prospective subcontractors use the same or similar checklist as appropriate.
PROPOSAL ADEQUACY CHECKLIST
(End of provision)
1998
EDITION 252.215-
| File Type | application/msword |
| File Modified | 2014-01-14 |
| File Created | 2014-01-14 |