Subcontractor Cost or Pricing Data

Is “Cost or Pricing Data” required from the “Subcontractor” in the following example?

Contractor (Prime) is proposing for a non-competitive award of $20 million. The KO’s threshold for obtaining “Cost or Pricing Data” is $650,000, as per FAR 15.403-4(a)(1). The Contractor (prime) is to supply its own “Cost or Pricing Data” with its proposal.

The Contractor (Prime) is proposing to issue a specific $1 million “subcontract” to one of its Subcontractors as part of its proposal.

$1 million is certainly more than $650,000 but, , , , what does FAR 15.404-3 say about obtaining “Cost or Pricing Data” from the Subcontractor? $1 million is less than the thresholds defined at 15.404-3?(1)!

My head hurts. Everybody has been so “wrapped around” the $650,000 figure that they would assert that I’m making up 15.404-3 out of thin air.

The dollar threshold for obtaining cost or pricing data from subs is $650,000. See FAR 15.403-4(a)(1)(ii). Subcontractors ordinarily submit their cost or pricing data to the prime contractor, not to the government. The dollar thresholds in 15.404-3©(1) determine whether the prime or the subcontractor must submit the sub's cost or pricing data to the government.