Requirement for Submittal of Certified Cost or Pricing Data for Contract Change
Started by Steveatus · Nov 14, 2014 · 3 replies
- SOriginal post
Steveatus
Nov 14, 2014 · 11y ago
I have FAR 52.215-11 "Price Reduction for Defective Certified Cost or Pricing Data-Modifications" on my contract. I can see where it requires me to reduce contract price in the event of a successful defective pricing allegation. What I don't see is a contractual requirement to submit cost or pricing data for a contemplated modification in the first place. Is there a FAR clause that is typically included in contracts that I am missing that says I have to submit cost or pricing data?
I believe if I receive an RFP for a contemplated modification from the customer, I have the right, absent other clauses in the contract, to decline to submit a proposal. Obviously, if I agreed to submit a proposal, the customer wouldn't proceed on the change unless I submitted cost or pricing data when appropriate.
What would happen if the customer issues a Change Order? Am I contractually obligated to submit certified cost or pricing data, or am I more or less just boxed into a corner because I won't be able to secure an equitable adjustment unless I submit certified cost or pricing data?
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ji20874
Nov 14, 2014 · 11y ago
Does your contract include the clause at FAR 52.215-21, Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data—Modifications?
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Guest Vern Edwards
Nov 15, 2014 · 11y ago
What would happen if the customer issues a Change Order? Am I contractually obligated to submit certified cost or pricing data, or am I more or less just boxed into a corner because I won't be able to secure an equitable adjustment unless I submit certified cost or pricing data?
If the customer issues a change order, you must comply with the order. Then, assuming that the proper clause is in your contract for submission of certified cost or pricing data for a modification, if you request an equitable adjustment for an increase in the contract price, the CO will require that you submit certified cost or pricing data in support thereof. If the CO wants a decrease, he or she will ask for a reduction proposal and certified cost or pricing data.
In such a case, refusal to comply with the CO's demand for certified cost or pricing data would be a breach of contract, i.e., a default. A smart CO would refuse your REA.
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Steveatus
Nov 17, 2014 · 11y ago
Thank you Vern and ji20874! You both have been very helpful.