Use the following clause, when contracting by sealed bidding, in lieu of the clause at FAR 52.214-28, Price Reduction for Defective Certified Cost or Pricing Data-Modifications, in solicitations and contracts if the contract amount is expected to exceed $2 million.
SUBCONTRACTOR CERTIFIED COST OR PRICING DATA—MODIFICATIONS—SEALED BIDDING (DEVIATION 2022-O0001) (OCT 2021)
(a) The requirements of paragraphs (b) and (c) of this clause shall—
(1) Become operative only for any modification to this contract involving aggregate increases and/or decreases in costs, plus applicable profits, expected to exceed $2 million on the
date of execution of the modification, and
(2) Be limited to such modifications.
(b) Before awarding any subcontract expected to exceed $2 million, on the date of agreement on price or the date of award, whichever is later, or before pricing any subcontract modifications involving aggregate increases and/or decreases in costs, plus applicable profits, expected to exceed $2 million, the Contractor shall require the subcontractor to submit certified cost or
pricing data (actually or by specific identification in writing), as part of the subcontractor’s proposal in accordance with Federal Acquisition Regulation (FAR) 15.408, Table 15-2 (to
include any information reasonably required to explain the subcontractor’s estimating process such as the judgmental factors applied and the mathematical or other methods used in the estimate, including those used in projecting from known data, and the nature and amount of any contingencies included in the price), unless an exception under FAR 15.403-1(b) applies. If the
$2 million threshold for submission of certified cost or pricing data specified is adjusted for inflation as set forth in FAR 1.109(a), then pursuant to FAR 1.109(d) the changed threshold applies throughout the remaining term of the contract, unless there is a subsequent threshold adjustment.
(c) The Contractor shall require the subcontractor to certify in substantially the form prescribed in subsection 15.406-2 of the Federal Acquisition Regulation that, to the best of its knowledge and belief, the data submitted under paragraph (b) above were accurate, complete, and current as of the date of agreement on the negotiated price of the subcontract or subcontract modification.
(d) The Contractor shall insert the substance of this clause, including this paragraph (d), in each subcontract that, when entered into, exceeds $2 million.
(End of clause)
(d) The Contractor shall insert the substance of this clause, including this paragraph (d), in each subcontract that, when entered into, exceeds $2 million.