Multiple Certificates Required?
Started by rdtmk5 · Aug 13, 2015 · 6 replies
- rOriginal post
rdtmk5
Aug 13, 2015 · 10y ago
Scenario: I obtain a CCCPD for a subcontract valued at >$700K. I then increase the value of the subcontract by $200K. Do I need another CCCPD? Of course this assumes that none of the TINA exceptions apply.
Many thanks for your help.
- J
Jacques
Aug 13, 2015 · 10y ago · edited 10y ago
More facts please. Is this one action or two? Toward substantiating your answer, do you have a date of agreement on price that both parties have honored and will continue to honor for the first action?
EDIT: The possibility I’m trying to eliminate is that you have only one contract action and the sub has not, in fact, provided accurate, current and complete cost or pricing data to support the entire action.
- j
joel hoffman
Aug 13, 2015 · 10y ago
Assuming that you are a prime to the sub, why did you obtain the first certificate and what was the reason for the increase ?
- R
Retreadfed
Aug 13, 2015 · 10y ago
rdtmk, you need to set forth a chronology of events to explain what happened. What you have written so far is very confusing and vague. Also, is the prime contract FFP or flexibly priced?
- G
Guest Vern Edwards
Aug 13, 2015 · 10y ago
This is a question that a literate person could answer for himself or herself by reading FAR 15.403-4.
- r
rdtmk5
Aug 13, 2015 · 10y ago
Thank you, Vern.
- J
Jacques
Aug 14, 2015 · 10y ago
rdtmk5, you may want to keep in mind the following. The Price Reduction for Defective Certified Cost or Pricing Data—Modifications clause at FAR 52.215-11 provides, at para ( b )(3), “If any price…negotiated in connection with any modification under this clause…was increased by any significant amount because…any of these parties [the prime or a subcontractor] furnished data of any description that were not accurate, the price or cost shall be reduced accordingly….” Para ( b ) applies when the modification of the PRIME contract exceeds the TINA threshold. Under para (d)(1)(iv) of the clause the Contractor agrees not to raise as a defense that the subcontractor did not submit a Certificate of Current Cost or Pricing Data. The clause at 52.215-10 contains the same language.