Current Cost and Pricing Cert for multi CLIN Delivery Order

Having an executed FPRA does not excuse the contractor from compliance with TINA. For example, the contractor's forecast of its billing rates may have changed since the FPRA was executed, and TINA would require that disclosure. Hence, the need for a Cert.

Hope this helps.

Adding to what H2H said, a contractor does not certify the cost or pricing data submitted in support of the FPRA when it enters into the FPRA. Instead, the contractor certifies that data when the FPRA is used in pricing an action that would otherwise be subject to TINA. Further, if there are more current data that have come into exiestence after entering into the FPRA, the contractor should disclose those and include them in the certification. See, FAR 15.407-3.

Adding to what H2H said, a contractor does not certify the cost or pricing data submitted in support of the FPRA when it enters into the FPRA

Ah, my friend. There is where you and I, and the gracious auditors at the DCAA, must part company. Did you see DCAA's recent FPRP "adequacy" checklist? No? Well, then you simply must check it out. It says (in part)-- Contractors that submit cost or price proposals which require the submission of certified cost or pricing data, generally must do so in a format that is consistent with Table 15-2 of Federal Acquisition Regulation (FAR) 15.408 (see FAR 15.403-5). The requirement to submit certified cost or pricing data extends to all cost elements in the proposal, including the underlying direct and indirect rates which may include costs allocated from corporate/home offices or shared services. When the contracting officer determines that entering into a forward pricing rate agreement (FPRA) is beneficial, FAR 42.1701( B ) provides that the ACO shall obtain the contractor’s forward pricing rate proposal (FPRP) and require that it include cost or pricing data that are accurate, complete, and current as of the date of submission. If a contractor does not separately provide an FPRP, but instead includes the proposed rates and supporting data in individual cost or price proposals, the contractor is bound by the format/content requirements specified in FAR 15.403-5. The requirements for adequately supported direct and indirect cost rates are not lessened when a contractor separately submits an FPRP for the rates. Therefore, the requirements contained in Table FAR 15-2 of 15.408 extend to FPRPs (including those submitted to support costs allocated from corporate/home offices or shared services) when the resulting rates are expected to be included in proposals that require the submission of cost or pricing data. I'm sure this will NOT help.

Ah, my friend. There is where you and I, and the gracious auditors at the DCAA, must part company. Did you see DCAA's recent FPRP "adequacy" checklist? No? Well, then you simply must check it out.

Where, exactly, do you and DCAA part company with Retreadfed? If you're referring to the checklist at http://www.dcaa.mil/...y_Checklist.pdf, I didn't see anything inconsistent with what Retreadfed said. As a matter of fact, it refers to FAR 42.1701(b ), which includes the parenthetical "(but see 15.407-3(c ))." 15.407-3(c ) says, "Contracting officers shall not require certification at the time of agreement for data supplied in support of FPRA’s or other advance agreements."

Navy,

To clarify, Retreadfed and I (together) part company with DCAA where the agency asserts --

"Therefore, the requirements contained in Table FAR 15-2 of 15.408 extend to FPRPs (including those submitted to support costs allocated from corporate/home offices or shared services) when the resulting rates are expected to be included in proposals that require the submission of cost or pricing data."

The agency is asserting that the data contained in FPRPs are, in fact, certified cost or pricing data.

As is frequently the case, the auditors don't particularly care whether or not contracting officers require a TINA certification. Their approach is based on the notion that the contractor is submitting certified cost or pricing data in the format requried by Table 15-2. Period.

Okay?

FAR 42.1701( says:

The ACO shall obtain the contractor’s forward pricing rate proposal and require that it include cost or pricing data that are accurate, complete, and current as of the date of submission (but see 15.407-3( c))....

Now see FAR 15.407-3( c):

Contracting officers shall not require certification at the time of agreement for data supplied in support of FPRA’s or other advance agreements. When a forward pricing rate agreement or other advance agreement is used to price a contract action that requires a certificate, the certificate supporting that contract action shall cover the data supplied to support the FPRA or other advance agreement, and all other data supporting the action.

See Manos, Government Contract Costs & Pricing, 2d ed., Sec. 84:11. Submission of certified cost or pricing data—Forward pricing rate agreements:

There are special rules for forward pricing rate agreements (FPRAs). No certification of cost or pricing data is required when a FPRA or other advance agreement is negotiated. Rather, when the FPRA is used to price a contract action subject to TINA, the certificate of current cost or pricing data for that contract action also encompasses all of the data supplied to support the FPRA. Accordingly, when cost or pricing data are required in connection with a proposal for a contract action, the offeror must describe any applicable FPRA and identify the latest cost or pricing data already submitted in accordance the FPRA. All of the cost or pricing data submitted in connection with the FPRA, updated as necessary, then form a part of the total data that the offeror certifies to be accurate, complete, and current at the time of agreement on price for the contract or modification. There are special rules for forward pricing rate agreements (FPRAs). No certification of cost or pricing data is required when a FPRA or other advance agreement is negotiated. Rather, when the FPRA is used to price a contract action subject to TINA, the certificate of current cost or pricing data for that contract action also encompasses all of the data supplied to support the FPRA. Accordingly, when cost or pricing data are required in connection with a proposal for a contract action, the offeror must describe any applicable FPRA and identify the latest cost or pricing data already submitted in accordance the FPRA. All of the cost or pricing data submitted in connection with the FPRA, updated as necessary, then form a part of the total data that the offeror certifies to be accurate, complete, and current at the time of agreement on price for the contract or modification.

Footnotes omitted.

See also the text of the certificate of current cost or pricing data, FAR 15.406-2(a):

This is to certify that, to the best of my knowledge and belief, the cost or pricing data (as defined in section 2.101 of the Federal Acquisition Regulation (FAR) and required under FAR subsection 15.403-4) submitted, either actually or by specific identification in writing, to the Contracting Officer or to the Contracting Officer's representative in support of ________* are accurate, complete, and current as of ________**. This certification includes the cost or pricing data supporting any advance agreements and forward pricing rate agreements between the offeror and the Government that are part of the proposal.

Emphasis added.

Vern, et al,

I'm not exactly sure if we are disagreeing or not. See my first response. Since then, I have been pointing out that DCAA seems to think that a contractor's FPRP must contain CERTIFIED cost or pricing data, since they expect the format of Table 15-2 to be followed. I disagree with DCAA's presumption that any contractor's FPRP must follow the format of FAR Table 15-2 in order to be considered to be "adequate" for audit, since I don't agree with DCAA that the contractor must certify its FPRP under TINA.

I don't disagree with anything else posted on this thread. I'm just trying to warn Retreadfed (and perhaps others) that DCAA has a different notion than the FAR.

H2H

DCAA is probably reacting to the relatively new term "certified cost or pricing data," which was added to FAR in August 2011. See the definition at FAR 2.101:

“Certified cost or pricing data” means “cost or pricing data” that were required to be submitted in accordance with FAR 15.403-4 and 15.403-5 and have been certified, or is required to be certified, in accordance with 15.406-2. This certification states that, to the best of the person’s knowledge and belief, the cost or pricing data are accurate, complete, and current as of a date certain before contract award. Cost or pricing data are required to be certified in certain procurements (10 U.S.C. 2306a and 41 USC 254b).

An FPRA proposal must include "cost or pricing data". See FAR 42.1701(. If such data will have to be certified in the future in accordance with FAR 15.407-3, it is called "certified cost or pricing data" instead of just "cost or pricing data." It is a matter of new terminology. "Certified" does not mean that it actually has been certified, or must be certified immediately, but that it must be certified eventually.

May I change the discussion slightly? What if the T&M rates are agreed to in the contract, so you are not using a FPRA? Suppose you are adding within scope work and pricing it as T&M, and the value of the work exceeds the TINA threshold. Is a TINA cert required, and what would it be certifying?

See FAR 15.403-4(a). If the CO modifies a contract, and if the absolute value of the modification (the sum of increases and decreases) exceeds the TINA threshold, and no exception applies, then the CO must obtain certified cost or pricing data from the contractor for the modification. The date to be certified would be the data associated with the modification, not the data associated with the original award. I am assuming that the FPRA is not being used to price the modification.

Thank you for the response. I understand the need for TINA certifications for mods (and how to apply absolute value to determine if a certification is needed). Assume a $1M mod (above the TINA threshold) that is 100% T&M, and assume the T&M rates are stated in the contract so that no FPRA is used. If cost or pricing data are required under TINA, what data can be submitted, and how would the contracting officer rely on that data, in light of the agreed upon contract rates? If there is data related to the estimated hours needed to complete the work, what is the measure of damages if that data is defective (payment is based on actual hours, not estimated hours)? If there are no potential damages for defective data related to estimates of the amount of work required, what is the value of a certification? Some of this may be theoretical, but some of this is of interest to contracting officers told to get a TINA cert and who ask why.

wvanpup,

You seem to be conflating TINA and False Claims Act violations, when you ask about the measure of damages for defective pricing. That's understandable, because the two seem to go together these days. But the measure of damages for defective pricing is a unilateral contract price reduction equal to the value of the (certified) cost or pricing data that was disclosed in violation of the TINA requirements, plus interest on any overpayments that resulted from the defective pricing.

Hope this helps.

Assume a $1M mod (above the TINA threshold) that is 100% T&M, and assume the T&M rates are stated in the contract so that no FPRA is used. If cost or pricing data are required under TINA, what data can be submitted, and how would the contracting officer rely on that data, in light of the agreed upon contract rates?

The data would have to include information bearing on the proposed labor mix and total labor hours required for performance. Perhaps data about materials, as well.

If there is data related to the estimated hours needed to complete the work, what is the measure of damages if that data is defective (payment is based on actual hours, not estimated hours)? If there are no potential damages for defective data related to estimates of the amount of work required, what is the value of a certification? Some of this may be theoretical, but some of this is of interest to contracting officers told to get a TINA cert and who ask why.

I understand your point. If the labor rates are not to be negotiated, how could the costs be increased by defective pricing? Good question, but so what? The law requires the CO to obtain certified cost or pricing data under certain circumstances and makes no exceptions for the circumstance that you are describing or for T&M contracts generally.