80_FR_46066 80 FR 45918 - Defense Federal Acquisition Regulation Supplement: Evaluating Price Reasonableness for Commercial Items (DFARS Case 2013-D034)

80 FR 45918 - Defense Federal Acquisition Regulation Supplement: Evaluating Price Reasonableness for Commercial Items (DFARS Case 2013-D034)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System

Federal Register Volume 80, Issue 148 (August 3, 2015)

Page Range45918-45923
FR Document2015-18938

DoD is proposing to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to implement a section of the National Defense Authorization Act for Fiscal Year 2013 that requires the issuance of guidance on the use of the authority to require the submission of other than cost or pricing data.

Federal Register, Volume 80 Issue 148 (Monday, August 3, 2015)
[Federal Register Volume 80, Number 148 (Monday, August 3, 2015)]
[Proposed Rules]
[Pages 45918-45923]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-18938]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 202, 212, 215, and 252

RIN 0750-AI64


Defense Federal Acquisition Regulation Supplement: Evaluating 
Price Reasonableness for Commercial Items (DFARS Case 2013-D034)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Proposed rule.

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SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to implement a section of the National 
Defense Authorization Act for Fiscal Year 2013 that requires the 
issuance of guidance on the use of the authority to require the 
submission of other than cost or pricing data.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before October 2, 2015, to be considered 
in the formation of the final rule.

ADDRESSES: Submit comments identified by DFARS Case 2013-D034, using 
any of the following methods:
    [cir] Regulations.gov: http://www.regulations.gov. Submit comments 
via the Federal eRulemaking portal by entering ``DFARS Case 2013-D034'' 
under the heading ``Enter keyword or ID'' and selecting ``Search.'' 
Select the link ``Submit a Comment'' that corresponds with ``DFARS Case 
2013-D034.'' Follow the instructions provided at the ``Submit a 
Comment'' screen. Please include your name, company name (if any), and 
``DFARS Case 2013-D034'' on your attached document.
    [cir] Email: [email protected]. Include DFARS Case 2013-D034 in the 
subject line of the message.
    [cir] Fax: 571-372-6094.
    [cir] Mail: Defense Acquisition Regulations System, Attn: Mr. Mark 
Gomersall, OUSD(AT&L)DPAP/DARS, Room 3B855, 3060 Defense Pentagon, 
Washington, DC 20301-3060.
    Comments received generally will be posted without change to http://www.regulations.gov, including any personal information provided. To 
confirm receipt of your comment(s), please check www.regulations.gov, 
approximately two to three days after submission to verify posting 
(except allow 30 days for posting of comments submitted by mail).

FOR FURTHER INFORMATION CONTACT: Mr. Mark Gomersall, Defense 
Acquisition

[[Page 45919]]

Regulations System, OUSD(AT&L)DPAP/DARS, Room 3B855, 3060 Defense 
Pentagon, Washington, DC 20301-3060. Telephone 571-372-6099.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD is proposing to amend the DFARS to implement portions of 
section 831 of the National Defense Authorization Act (NDAA) for Fiscal 
Year (FY) 2013 (Pub. L. 112-239, enacted January 2, 2013). Title 10, 
United States Code (U.S.C.), mandates that offerors submitting 
proposals for negotiated procurements provide certified cost or pricing 
data under certain circumstances if the estimated value of the 
procurement is above a certain dollar threshold. For other types of 
procurements, e.g., commercial-item acquisitions, the law requires only 
that an offeror provide ``data other than certified cost or pricing 
data to the extent necessary to determine the reasonableness of the 
price'' (10 U.S.C. 2306a(d)(1)). Section 831 requires the issuance of 
guidance on the use of the authority to require the submission of other 
than cost or pricing data. Specifically, section 831, paragraph (a) 
provides that the guidance accomplish the following:
    1. Include standards for determining whether information on the 
prices at which the same or similar items have previously been sold is 
adequate for evaluating the reasonableness of price;
    2. Include standards for determining the extent of uncertified cost 
information that should be required in cases in which price information 
is not adequate for evaluating the reasonableness of price;
    3. Ensure that in cases in which such uncertified cost information 
is required, the information shall be provided in the form in which it 
is regularly maintained by the offeror in its business operations; and
    4. Provide that no additional cost information may be required by 
the Department of Defense in any case in which there are sufficient 
nongovernment sales to establish reasonableness of price.

II. Discussion and Analysis

    This rule proposes to amend the DFARS as follows to--
     Add new definitions at 202.101 for ``market-based 
pricing'' and ``uncertified cost data'' and at 215.401 for 
``nongovernment sales,'' ``relevant sales data,'' and ``sufficient 
nongovernment sales to establish reasonableness of price'';
     Add section 212.209 entitled ``Determination of price 
reasonableness'';
     Add guidelines at 215.402(a)(3), for obtaining data other 
than certified cost or pricing data;
     Add instructions at 215.403-5 for the submission of 
certified cost or pricing data and data other than certified cost or 
pricing data;
     Add guidelines at 215.404-1 concerning proposal analysis 
techniques;
     Renumber the paragraph structure at 215.404-1-70;
     Revise the clause prescription at 215.408, 
paragraph(3)(i), and add three new provision prescriptions at paragraph 
(6); and
     Add three new provisions in part 252.

III. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
This is not a significant regulatory action and, therefore, was not 
subject to review under section 6(b) of E.O. 12866, Regulatory Planning 
and Review, dated September 30, 1993. This rule is not a major rule 
under 5 U.S.C. 804.

IV. Regulatory Flexibility Act

    DoD does not expect this proposed rule to have a significant 
economic impact on a substantial number of small entities within the 
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., 
because the proposed rule does not add to or remove any of the existing 
requirements for the submission of other than certified cost or pricing 
data for the purpose of determining the reasonableness of prices 
proposed for commercial items. However, an initial regulatory 
flexibility analysis has been performed and is summarized as follows:
    This initial regulatory flexibility analysis has been prepared 
consistent with 5 U.S.C. 603. It addresses additional guidance to be 
included in the Defense Federal Acquisition Regulation Supplement 
(DFARS) concerning the appropriate amount and type of other than 
certified cost or pricing information that contracting officers must 
require an offeror to submit in order to determine whether proposed 
prices for commercial items are fair and reasonable. The rule also 
proposes to add three new provisions.
    The National Defense Authorization Act (NDAA) for Fiscal Year (FY) 
2013 included section 831, entitled ``Guidance and Training Related to 
Evaluating Reasonableness of Price.'' Paragraph (a) of section 831 
required the issuance of guidance addressing the following four areas:
    1. Requirement to include standards for determining whether 
information on the prices at which the same or similar items have 
previously been sold is adequate for evaluating the reasonableness of 
price.
    2. Requirement to include standards for determining the extent of 
uncertified cost information that should be required in cases in which 
price information is not adequate for evaluating the reasonableness of 
price.
    3. Ensure that in cases in which such uncertified cost information 
is required, the information shall be provided in the form in which it 
is regularly maintained by the offeror in its business operations.
    4. Provide that no additional cost information may be required by 
the Department of Defense in any case in which there are sufficient 
non-Government sales to establish reasonableness of price.
    DoD does not expect this proposed rule to have a significant 
economic impact on a substantial number of small entities within the 
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., 
because this rule merely provides guidance to contracting officers on 
the use of the existing authority to require the submission of other 
than cost or pricing data.
    The reporting requirements for small entities do not differ from 
those for large entities and are covered by OMB Control Number 9000-
0013, Cost or Pricing Data Exemption. This proposed rule does not add 
to or remove any of the existing requirements; it does clarify the 
limits on the amount and types of data that may be required from 
offerors so that contracting officers do not inadvertently impose 
submission requirements on small entities or other types of businesses 
that are excessive.
    The rule does not duplicate, overlap, or conflict with any other 
Federal rules. Consistent with the stated objectives of section 831 of 
the NDAA for FY 2013 and with the statutory requirements for cost or 
pricing data in title 10, United States Code (U.S.C.), there is no 
alternative to applying the requirements for other than cost or pricing 
data equally to small and large entities.

[[Page 45920]]

    DoD invites comments from small business concerns and other 
interested parties on the expected impact of this rule on small 
entities.
    DoD will also consider comments from small entities concerning the 
existing regulations in subparts affected by this rule in accordance 
with 5 U.S.C. 610. Interested parties must submit such comments 
separately and should cite 5 U.S.C. 610 (DFARS Case 2013-D034), in 
correspondence.

V. Paperwork Reduction Act

    This rule affects the information collection requirements in the 
provisions at Federal Acquisition Regulation (FAR) subpart 15.4, 
Contract Pricing (in particular, FAR 15.403, Obtaining Certified Cost 
or Pricing Data) and the clauses at FAR 52.215-20, Requirements for 
Certified Cost or Pricing Data and Data Other Than Certified Cost or 
Pricing Data, and FAR 52.215-21, Requirements for Certified Cost or 
Pricing Data and Data Other Than Certified Cost or Pricing Data--
Modifications, currently approved under OMB Control Number 9000-0013, 
entitled ``Cost or Pricing Data Exemption,'' in accordance with the 
Paperwork Reduction Act (44 U.S.C. chapter 35). The impact, however, is 
negligible, because the DFARS change does not add or remove 
requirements for submission of other than cost or pricing data. The 
DFARS merely provides clarification of the circumstances under which 
the FAR requires contracting officers to obtain other than cost or 
pricing data solely for the purpose of determining reasonableness of 
prices proposed by offerors for commercial items. There are no changes 
to the existing requirement for supporting cost data for determining 
price reasonableness.

List of Subjects in 48 CFR Parts 202, 212, 215, and 252

    Government procurement.

Amy G. Williams,
Editor, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 202, 212, 215, and 252 are proposed to be 
amended as follows:

0
1. The authority citation for parts 202, 212, 215, and 252 continues to 
read as follows:

    Authority:  41 U.S.C. 1303 and 48 CFR chapter 1.

PART 202--DEFINITIONS OF WORDS AND TERMS

0
2. Amend section 202.101 by adding, in alphabetical order, the 
definitions for ``market-based pricing'' and ``uncertified cost data'' 
to read as follows:


202.101  Definitions.

* * * * *
    Market-based pricing means pricing that results when 
nongovernmental buyers drive the price in a commercial marketplace. 
When nongovernmental buyers in a commercial marketplace account for a 
preponderance (50 percent or more) of sales by volume of a particular 
item, there is a strong likelihood the pricing is market based.
* * * * *
    Uncertified cost data means the subset of ``data other than 
certified cost or pricing data'' (see FAR 2.101) that relates to cost.
* * * * *

PART 212--ACQUISITION OF COMMERCIAL ITEMS

0
3. Add section 212.209 to subpart 212.2 to read as follows:


212.209  Determination of price reasonableness.

    In order to establish a fair and reasonable price based on market-
based pricing (see 215.404-1), the contracting officer shall obtain 
adequate commercial marketplace sales data (see 215.404-1(b)) to ensure 
the price offered to the Government is reasonably consistent with 
market-based pricing. When obtaining such data, follow the order of 
preference at FAR 15.402(a)(2), and otherwise comply with the 
requirements of FAR part 15, part 215, and PGI part 215.

PART 215--CONTRACTING BY NEGOTIATION

0
4. Add section 215.401 to subpart 215.4 to read as follows:


215.401  Definitions.

    Nongovernment sales means sales of the supplies or services to 
nongovernmental entities for purposes other than governmental purposes.
    Relevant sales data means the subset of an offeror's sales data 
that, as considered by a prudent person, could reasonably be expected 
to influence the contracting officer's determination of price 
reasonableness, taking into consideration the age, volume, and nature 
of the transactions (including any related discounts, refunds, rebates, 
offsets or other adjustments) in the data subset.
    Sufficient nongovernment sales to establish reasonableness of price 
(see 215.402(a)(3)) exist when relevant sales data reflects market-
based pricing, are made available for the contracting officer to 
review, and contains enough information to make adjustments covered by 
FAR 15.404 1(b)(2)(ii)(B).
0
5. Amend section 215.402 by adding paragraph (a)(3) to read as follows:


215.402  Pricing policy.

* * * * *
    (a)(3) When obtaining data other than certified cost or pricing 
data (Pub. L. 112-239 sec. 831)--
    (A) The standard to be used by contracting officers in determining 
the adequacy of information on prices at which same or similar items 
have been sold is whether a prudent person would conclude that it is 
sufficient to determine whether the proposed price is fair and 
reasonable. See 215.404-1 and PGI 215.404-1; and
    (B) In cases when uncertified cost data is necessary to determine 
that the price is fair and reasonable, the contracting officer should 
request uncertified cost data only to the extent that a prudent person 
would consider necessary to determine a fair and reasonable price.
0
6. Amend section 215.403-5 by adding paragraphs (a) and (b)(2) to read 
as follows:


215.403-5  Instructions for submission of certified cost or pricing 
data and data other than certified cost or pricing data.

    (a) The contracting officer shall not limit the Government's 
ability to obtain any data that may be necessary to support a 
determination of fair and reasonable pricing.
    (b)(2) If the contracting officer requires the offeror to provide 
uncertified cost data, it shall be the form in which it is regularly 
maintained by the offeror in its business operations (Pub. L. 112-239 
sec. 831).
* * * * *
0
7. Revise section 215.404-1 to read as follows:


215.404-1  Proposal analysis techniques.

    (b)(2)(ii) In the absence of adequate price competition in response 
to the solicitation, market-based pricing is the preferred method to 
establish a fair and reasonable price (Pub. L. 112-239 sec. 831).
    (A)(i) Relevant sales data are a valid basis for price comparison, 
in the following order of preference:
    (a) Relevant sales data for the same good or service being acquired 
that reflect market-based pricing.
    (b) Relevant sales data for substantially similar goods or services 
that reflect market-based pricing.
    (c) Relevant sales data for the same good or services being 
acquired that do not reflect market-based pricing.

[[Page 45921]]

    (d) Relevant sales data for substantially similar goods or services 
that do not reflect market-based pricing.
    (ii) The contracting officer may obtain additional data necessary 
to verify the price to be paid is fair and reasonable. However, if 
relevant sales data for the same supplies or services being acquired 
reflects market-based pricing, and is made available for the 
contracting officer to review, the contracting officer shall not obtain 
uncertified cost data.
    (iii) When evaluating sales data, contracting officers shall 
exercise prudent business judgment and consider standards such as the 
following, using the order of preference in FAR 15.402(a) and 
215.402(a)(3):
    (a) Market-based pricing. See 202.101.
    (b) Age of data.
    (1) Whether data is too old to be relevant depends on the industry 
(e.g., rapidly evolving technologies), product maturity (e.g., stable), 
economic factors (e.g., new sellers in the marketplace), and various 
other considerations.
    (2) A pending sale may be relevant if it is probable at the 
anticipated price, and the sale could reasonably be expected to 
materially influence the contracting officer's determination of price 
reasonableness. Consult with the offeror's corporate or divisional 
administrative contracting officer (if applicable) about future sales.
    (c) Volume. The number of transactions must be sufficient to permit 
the contracting officer to make a determination on price reasonableness 
based on the relevant sales data. If the number of transactions is 
insufficient to make a determination, the contracting officer shall 
consider broadening the search (e.g., identify whether all customers 
were included) to obtain additional relevant sales data as necessary to 
make the determination, following the order of preference at 215.404-
1(b)(2)(ii)(A)(i), and complying with FAR 15.402(a)(2).
    (d) Nature of transactions. The nature of a sales transaction 
includes the information necessary to understand the transaction, such 
as terms and conditions, date, quantity sold, sale price, the intended 
end-user, the type of customer (government, distributor, retail end-
user, etc.), and related agreements. It also includes information such 
as warranty information, key product technical specifications, 
maintenance agreements, or preferred customer rewards, if they 
substantially impact price differences among sales. When relevant sales 
data has materially differing terms and conditions (see 215.404-
1(b)(2)(ii)(B)), the contracting officer shall adjust the prices as 
required by FAR 15.404-1(b)(2)(ii)(B).
    (e) Catalog Prices. Catalog prices are reliable when consistent 
with relevant sales data (including any related discounts, refunds, 
rebates, offsets or other adjustments).
    (B) Terms and conditions, quantities, and market and economic 
factors, are materially differing if the differences could reasonably 
be expected to influence the contracting officer's determination of 
price reasonableness.
    (C) The DoD cadre of experts is identified at PGI 215.404-
2(a)(iii).
0
8. Add section 215.404-1-70 to read as follows:


215.404-1-70  Procedures.

    (a) Follow the procedures at PGI 215.404-1 for proposal analysis.
    (b) For spare parts or support equipment, perform an analysis of--
    (1) Those line items where the proposed price exceeds by 25 percent 
or more the lowest price the Government has paid within the most recent 
12-month period based on reasonably available data;
    (2) Those line items where a comparison of the item description and 
the proposed price indicates a potential for overpricing;
    (3) Significant high-dollar-value items. If there are no obvious 
high-dollar-value items, include an analysis of a random sample of 
items; and
    (4) A random sample of the remaining low-dollar value items. Sample 
size may be determined by subjective judgment, e.g., experience with 
the offeror and the reliability of its estimating and accounting 
systems.
0
9. Amend section 215.408 by--
0
a. Revising paragraph (3)(i)(A)(1) introductory text;
0
b. Revising paragraph (3)(i)(A)(2) introductory text;
0
c. Revising paragraph (3)(i)(B) introductory text; and
0
d. Adding paragraph (6).
    The revisions and addition read as follows:


215.408  Solicitation provisions and contract clauses.

* * * * *
    (3) * * *
    (i)(A) * * *
    (1) In lieu of 252.215-70XX, Requirement for Data Other Than 
Certified Cost or Pricing Data, in a solicitation, including 
solicitations using FAR part 12 procedures for the acquisition of 
commercial items, for a sole source acquisition from the Canadian 
Commercial Corporation that is--
* * * * *
    (2) In lieu of 252.215-70XX in a solicitation, including 
solicitations using FAR part 12 procedures for the acquisition of 
commercial items, for a sole source acquisition from the Canadian 
Commercial Corporation that does not meet the thresholds specified in 
paragraph (3)(i)(A)(1), if approval is obtained as required at 225.870-
4(c)(2)(ii); and
    (B) Do not use 252.225-7003 in lieu of 252.215-70XX in competitive 
acquisitions.
* * * * *
    (6) Requirements for certified cost or pricing data and data other 
than certified cost or pricing data.
    (i) Use the provision at 252.215-70XX, Requirements for Certified 
Cost or Pricing Data and Data Other Than Certified Cost or Pricing 
Data, in lieu of the provision at FAR 52.215-20 Requirements for 
Certified Cost or Pricing Data and Data Other Than Certified Cost or 
Pricing Data, in solicitations and contracts when it is reasonably 
certain that the submission of certified cost or pricing data or data 
other than certified cost or pricing data will be required.
    (A) Use the basic provision when the submission of certified cost 
or pricing data may not be required at the time of solicitation, or 
when submission of certified cost or pricing data is required to be in 
the format required by FAR Table 15-2.
    (B) Use the Alternate I provision to specify a format for certified 
cost or pricing data other than the format required by FAR Table 15-2.
    (ii) Use the provision at 252.215-70YY, Requirements for Submission 
of Proposals to the Administrative Contracting Officer and Contract 
Auditor, when using the basic or alternate of the provision at 252.215-
70XX if copies of the proposal are to be sent to the ACO and contract 
auditor.
    (iii) Use the provision at 252.215-70ZZ, Requirements for 
Submission of Proposals via Electronic Media, when using the basic or 
alternate of the provision at 252.215-70XX if submission via electronic 
media is required.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
10. Add section 252.215-70XX to read as follows:


252.215-70XX  Requirements for Certified Cost or Pricing Data and Data 
Other Than Certified Cost or Pricing Data.

    Basic. As prescribed in 215.408(6)(i) and (6)(i)(A), use the 
following provision:

[[Page 45922]]

Requirements for Certified Cost or Pricing Data and Data Other Than 
Certified Cost or Pricing Data--Basic (DATE)

    (a) Definitions. As used in this provision--
    Nongovernment sales means sales of the supplies or services to 
nongovernmental entities for purposes other than governmental 
purposes.
    Market-based pricing means pricing that results when 
nongovernmental buyers drive the price in a commercial marketplace. 
When nongovernmental buyers in a commercial marketplace account for 
a preponderance (50 percent or more) of sales by volume of a 
particular item, there is a strong likelihood the pricing is market 
based.
    Relevant sales data means the subset of an offeror's sales data 
that, as considered by a prudent person, could reasonably be 
expected to influence the contracting officer's determination of 
price reasonableness, taking into consideration the age, volume, and 
nature of the transactions (including any related discounts, 
refunds, rebates, offsets or other adjustments) in the data subset.
    Sufficient nongovernment sales to establish reasonableness of 
price (see DFARS 215.402(a)(3)(A)) exist when relevant sales data 
reflects market-based pricing, are made available for the 
contracting officer to review, and contains enough information to 
make adjustments covered by FAR 15.404 1(b)(2)(ii)(B).
    (b) Exceptions from certified cost or pricing data.
    (1) In lieu of submitting certified cost or pricing data, 
offerors may submit a written request for exception by submitting 
the information described in the following paragraphs. The 
Contracting Officer may require additional supporting information, 
but only to the extent necessary to determine whether an exception 
should be granted, and whether the price is fair and reasonable.
    (i) Identification of the law or regulation establishing the 
price offered. If the price is controlled under law by periodic 
rulings, reviews, or similar actions of a governmental body, attach 
a copy of the controlling document, unless it was previously 
submitted to the contracting office.
    (ii) Commercial item exception. For a commercial item exception, 
the offeror shall submit, at a minimum, information on prices at 
which the same item or similar items have previously been sold in 
the commercial market that is adequate for evaluating the 
reasonableness of the price for this acquisition. Such information 
shall include--
    (A) For items priced based on a catalog--
    (1) A copy of the offeror's current catalog showing the price 
for that item; and
    (2) Either of the following two alternative statements, included 
in the proposal:
    (i) ``The catalog provided with this proposal is consistent with 
all relevant sales data (including any related discounts, refunds, 
rebates, offsets or other adjustments). Relevant sales data shall be 
made available upon request of the contracting officer.''
    (ii) ``The catalog provided with this proposal is not consistent 
with all relevant sales data, due to the following: [Insert a 
detailed description of differences or inconsistencies between or 
among the relevant sales data, the proposed price, and the catalog 
price (including any related discounts, refunds, rebates, offsets or 
other adjustments).]'';
    (B) For items priced using market-based pricing, a description 
of: the nature of the commercial market; the methodology used to 
establish a market-based price; and all relevant sales data. The 
description shall be adequate to permit the Department of Defense to 
verify the accuracy of the description. If relevant sales data 
exist, the Offeror shall make such data available to the contracting 
officer for review within 10 days of a written request from the 
contracting officer; and
    (C) For items included on an active Federal Supply Service 
Multiple Award Schedule contract, proof that an exception has been 
granted for the schedule item.
    (2) The Offeror grants the contracting officer or an authorized 
representative the right to examine, at any time before award, 
books, records, documents, or other directly pertinent records to 
verify any request for an exception under this provision, and the 
reasonableness of price.
    (c) Requirements for certified cost or pricing data. If the 
offeror is not granted an exception from the requirement to submit 
certified cost or pricing data, the following applies:
    (1) The Offeror shall prepare and submit certified cost or 
pricing data, and supporting attachments in accordance with the 
instructions contained in Table 15-2 of FAR 15.408, which is 
incorporated by reference with the same force and effect as though 
it were inserted here in full text. The instructions in Table 15-2 
are incorporated as a mandatory format to be used in this contract, 
unless the Contracting Officer and the Offeror agree to a different 
format and change this provision to use Alternate I.
    (2) As soon as practicable after agreement on price, but before 
contract award (except for unpriced actions such as letter 
contracts), the Offeror shall submit a Certificate of Current Cost 
or Pricing Data, as prescribed by FAR 15.406-2.
    (d) Requirements for data other than certified cost or pricing 
data.
    (1) Data other than certified cost or pricing data submitted in 
accordance with this provision shall include all data necessary to 
permit a determination that the proposed price is fair and 
reasonable, to include the requirements in DFARS 215.402 and DFARS 
215.404-1.
    (2) In cases in which uncertified cost data is required, the 
information shall be provided in the form in which it is regularly 
maintained by the offeror or prospective subcontractor in its 
business operations.
    (3) The Offeror shall provide information described as follows: 
[Insert description of the data and the format that are required, 
including access to records necessary to permit an adequate 
evaluation of the proposed price in accordance with FAR 15.403-3.]
    (4) Within 10 days of a written request from the contracting 
officer to the offeror for additional information to support 
proposal analysis, the Offeror shall either provide the requested 
information, or provide a written explanation for the inability to 
fully comply with the request. Before providing an explanation for 
noncompliance, offerors are encouraged to clarify the request with 
the contracting officer.
    (5) Subcontract price evaluation.
    (i) Offerors shall obtain from subcontractors whatever 
information is necessary to support a determination of price 
reasonableness, as described in FAR part 15 and DFARS art 215. It 
may include cost data to support a commerciality determination, cost 
realism analysis, should-cost review, or any other type of analysis 
addressed by FAR part 15 and DFARS part 215. The data needed from a 
prospective subcontractor may include data other than certified cost 
or pricing data (which includes uncertified cost data obtained from 
the subcontractor), and information on the prices at which the same 
or similar items have previously been sold.
    (ii) No additional cost information may be required from a 
prospective subcontractor in any case in which there are sufficient 
nongovernment sales of the same item to establish reasonableness of 
price.
    (iii) If the offeror relies on relevant sales data for similar 
items to determine the price is reasonable, the Offeror shall obtain 
only that technical information necessary to support the conclusion 
that--
    (A) The items are technically similar; and,
    (B) Any dissimilarities should not produce a material price 
difference.
    (e) The Offeror shall require all prospective subcontractors 
above the simplified acquisition threshold in FAR part 2 to adhere 
to the requirements of paragraph (c) of this provision when 
determining that the proposed prices from prospective lower-tier 
subcontractors are fair and reasonable.


(End of provision)
    Alternate I. As prescribed in 215.408(6)(i) and (6)(i)(B), use the 
following provision, which includes a different paragraph (c)(1).

Requirements for Certified Cost or Pricing Data and Data Other Than 
Certified Cost or Pricing Data--Alternate I (DATE)

    (a) Definitions. As used in this provision--
    Nongovernment sales means sales of the supplies or services to 
nongovernmental entities for purposes other than governmental 
purposes.
    Market-based pricing means pricing that results when 
nongovernmental buyers drive the price in a commercial marketplace. 
When nongovernmental buyers in a commercial marketplace account for 
a preponderance (50 percent or more) of sales by volume of a 
particular item, there is a strong likelihood the pricing is market 
based.
    Relevant sales data means the subset of an offeror's sales data 
that, as considered by a prudent person, could reasonably be 
expected to influence the contracting officer's determination of 
price reasonableness, taking into consideration the age, volume, and 
nature of the transactions (including any

[[Page 45923]]

related discounts, refunds, rebates, offsets or other adjustments) 
in the data subset.
    Sufficient nongovernment sales to establish reasonableness of 
price (see DFARS 215.402(a)(3)(A)) exist when relevant sales data 
reflects market-based pricing, are made available for the 
contracting officer to review, and contains enough information to 
make adjustments covered by FAR 15.404 1(b)(2)(ii)(B).
    (b) Exceptions from certified cost or pricing data.
    (1) In lieu of submitting certified cost or pricing data, 
offerors may submit a written request for exception by submitting 
the information described in the following paragraphs. The 
Contracting Officer may require additional supporting information, 
but only to the extent necessary to determine whether an exception 
should be granted, and whether the price is fair and reasonable.
    (i) Identification of the law or regulation establishing the 
price offered. If the price is controlled under law by periodic 
rulings, reviews, or similar actions of a governmental body, attach 
a copy of the controlling document, unless it was previously 
submitted to the contracting office.
    (ii) Commercial item exception. For a commercial item exception, 
the offeror shall submit, at a minimum, information on prices at 
which the same item or similar items have previously been sold in 
the commercial market that is adequate for evaluating the 
reasonableness of the price for this acquisition. Such information 
may include--
    (A) For items priced based on a catalog--
    (1) A copy of the offeror's current catalog showing the price 
for that item; and
    (2) Either of the following two alternative statements, included 
in the proposal:
    (i) ``The catalog provided with this proposal is consistent with 
all relevant sales data (including any related discounts, refunds, 
rebates, offsets or other adjustments). Relevant sales data shall be 
made available upon request of the contracting officer.''
    (ii) ``The catalog provided with this proposal is not consistent 
with all relevant sales data, due to the following: [Insert a 
detailed description of differences or inconsistencies between or 
among the relevant sales data, the proposed price, and the catalog 
price (including any related discounts, refunds, rebates, offsets or 
other adjustments).]'';
    (B) For items priced using market-based pricing, a description 
of the nature of the commercial market; the methodology used to 
establish a market-based price; and all relevant sales data. The 
description shall be adequate to permit the Department of Defense to 
verify the accuracy of the description. If relevant sales data 
exist, the Offeror shall make such data available to the contracting 
officer for review within 10 days of a written request from the 
contracting officer; and
    (C) For items included on an active Federal Supply Service 
Multiple Award Schedule contract, proof that an exception has been 
granted for the schedule item.
    (2) The Offeror grants the contracting officer or an authorized 
representative the right to examine, at any time before award, 
books, records, documents, or other directly pertinent records to 
verify any request for an exception under this provision, and the 
reasonableness of price.
    (c) Requirements for certified cost or pricing data. If the 
offeror is not granted an exception from the requirement to submit 
certified cost or pricing data, the following applies:
    (1) The Offeror shall submit certified cost or pricing data, 
data other than certified cost or pricing data, and supporting 
attachments in the following format: [Insert description of the data 
and format that are required, and include access to records 
necessary to permit an adequate evaluation of the proposed price in 
accordance with FAR 15.408, Table 15-2, Note 2. The description may 
be inserted at the time of issuing the solicitation, or the 
Contracting Officer may specify that the format regularly maintained 
by the offeror or prospective subcontractor in its business 
operations will be acceptable, or the description may be inserted as 
the result of negotiations].
    (2) As soon as practicable after agreement on price, but before 
contract award (except for unpriced actions such as letter 
contracts), the Offeror shall submit a Certificate of Current Cost 
or Pricing Data, as prescribed by FAR 15.406-2.
    (d) Requirements for data other than certified cost or pricing 
data.
    (1) Data other than certified cost or pricing data submitted in 
accordance with this provision shall include all data necessary to 
permit a determination that the proposed price is fair and 
reasonable, to include the requirements in DFARS 215.402 and DFARS 
215.404-1.
    (2) In cases in which uncertified cost data is required, the 
information shall be provided in the form in which it is regularly 
maintained by the offeror or prospective subcontractor in its 
business operations.
    (3) The Offeror shall provide information described as follows: 
[Insert description of the data and the format that are required, 
including access to records necessary to permit an adequate 
evaluation of the proposed price in accordance with FAR 15.403-3.]
    (4) Within 10 days of a written request from the contracting 
officer to the offeror for additional information to support 
proposal analysis, the Offeror shall either provide the requested 
information, or provide a written explanation for refusing to comply 
with the request. Before providing a refusal and explanation, 
offerors are encouraged to clarify the request with the contracting 
officer.
    (5) Subcontract price evaluation.
    (i) Offerors shall obtain from subcontractors whatever 
information is necessary to support a determination of price 
reasonableness, as described in FAR part 15 and DFARS part 215. The 
information may include cost data to support a commerciality 
determination, cost realism analysis, should-cost review, or any 
other type of analysis addressed by FAR part 15 and DFARS part 215. 
The data needed from a prospective subcontractor may include data 
other than certified cost or pricing data (which includes 
uncertified cost data obtained from the subcontractor), and 
information on the prices at which the same or similar items have 
previously been sold.
    (ii) No additional cost information may be required from a 
prospective subcontractor in any case in which there are sufficient 
nongovernment sales of the same item to establish reasonableness of 
price.
    (iii) If the offeror relies on relevant sales data for similar 
items to determine the price is reasonable, the Offeror shall obtain 
only that technical information necessary to support the conclusion 
that--
    (A) The items are technically similar; and
    (B) Any dissimilarities should not produce a material price 
difference.
    (e) The Offeror shall require all prospective subcontractors 
above the simplified acquisition threshold in FAR part 2 to adhere 
to the requirements of paragraph (c) of this provision when 
determining that the proposed prices from prospective lower-tier 
subcontractors are fair and reasonable.


(End of provision)
0
11. Add section 252.215-70YY to read as follows:


252.215-70YY   Requirements for Submission of Proposals to the 
Administrative Contracting Officer and Contract Auditor.

    As prescribed in 215.408(6)(iii), use the following provision:

Requirements for Submission of Proposals to the Administrative 
Contracting Officer and Contract Auditor (DATE)

    When the proposal is submitted, the Offeror shall also submit 
one copy each to--
    (a) The Administrative Contracting Officer, and
    (b) The Contract Auditor.


(End of provision)
0
12. Add section 252.215-70ZZ to read as follows:


252.215-70ZZ   Requirements for Submission of Proposals via Electronic 
Media.

    As prescribed in 215.408(6)(iv), use the following provision:

Requirements for Submission of Proposals Via Electronic Media (DATE)

    The Offeror shall submit the cost portion of the proposal via 
the following electronic media: [Insert media format, e.g., 
electronic spreadsheet format, electronic mail, etc.].


(End of provision)

[FR Doc. 2015-18938 Filed 7-31-15; 8:45 am]
BILLING CODE 5001-06-P



                                                    45918                   Federal Register / Vol. 80, No. 148 / Monday, August 3, 2015 / Proposed Rules

                                                    document also treats a conflicting                       Liberman’s concerns regarding the                     DEPARTMENT OF DEFENSE
                                                    application (File No. BPH–                               credibility of Pyeatt’s expression of
                                                    20141028AAK) filed by Liberman                           interest in the proposed Grant                        Defense Acquisition Regulations
                                                    Broadcasting of Dallas Licensee LLC                      allotment.                                            System
                                                    (‘‘Liberman’’), licensee of Station                         Next, the OSC proposes the
                                                    KZMP–FM, Pilot Point, Texas, for a                       involuntary downgrade of KZMP, Pilot                  48 CFR Parts 202, 212, 215, and 252
                                                    construction permit to implement a                       Point, Texas, from Channel 285C0 to                   RIN 0750–AI64
                                                    previously granted upgrade in KZMP’s                     285C1 because nearly seven years have
                                                    channel class from Channel 285C1 to                      passed since KZMP was upgraded and                    Defense Federal Acquisition
                                                    285C0 (‘‘Pilot Point Application’’) as a                 Liberman has not implemented the                      Regulation Supplement: Evaluating
                                                    counterproposal. Finally, to                             upgrade.                                              Price Reasonableness for Commercial
                                                    accommodate Pyeatt’s proposal, an                           Finally, the NPRM also states that the             Items (DFARS Case 2013–D034)
                                                    Order to Show Cause is issued to                         public interest would be served by
                                                    Liberman as to why KZMP’s channel                        considering the Pilot Point Application               AGENCY:  Defense Acquisition
                                                    class should not be involuntarily                        because it could result in the provision              Regulations System, Department of
                                                    downgraded. See SUPPLEMENTARY                            of service to an additional 1,507,667                 Defense (DoD).
                                                    INFORMATION, supra.                                      people and treating it as a                           ACTION: Proposed rule.
                                                    DATES: Comments must be filed on or                      counterproposal to Pyeatt’s Petition for
                                                                                                                                                                   SUMMARY:   DoD is proposing to amend
                                                    before August 31, 2015, and reply                        Rule Making. Both Pyeatt and Liberman                 the Defense Federal Acquisition
                                                    comments on or before September 15,                      are invited to submit comments, seeking               Regulation Supplement (DFARS) to
                                                    2015.                                                    to demonstrate why their proposals                    implement a section of the National
                                                    ADDRESSES: Secretary, Federal
                                                                                                             better serve the public interest under the            Defense Authorization Act for Fiscal
                                                    Communications Commission, 445                           FM Allotment Priorities. The Pilot Point              Year 2013 that requires the issuance of
                                                    Twelfth Street SW., Washington, DC                       Application reference coordinates are                 guidance on the use of the authority to
                                                    20554. In addition to filing comments                    33–32–14 NL and 96–49–54 WL.                          require the submission of other than
                                                                                                                Provisions of the Regulatory
                                                    with the FCC, interested parties should                                                                        cost or pricing data.
                                                    serve the rule making petitioner and the                 Flexibility Act of 1980 do not apply to
                                                                                                                                                                   DATES: Comments on the proposed rule
                                                    counter proponent as follows: Katherine                  this proceeding.
                                                                                                                Members of the public should note                  should be submitted in writing to the
                                                    Pyeatt, 2215 Cedar Springs Rd., #1605,                                                                         address shown below on or before
                                                                                                             that from the time a Notice of Proposed
                                                    Dallas, Texas 75201; James R. Bayes,                                                                           October 2, 2015, to be considered in the
                                                                                                             Rule Making is issued until the matter
                                                    Esq., Mark N. Lipp, Esq., and Marnie K.                                                                        formation of the final rule.
                                                                                                             is no longer subject to Commission
                                                    Sarver, Esq., Wiley Rein LLP, 1776 K                                                                           ADDRESSES: Submit comments
                                                                                                             consideration or court review, all ex
                                                    Street NW., Washington, DC 20006                                                                               identified by DFARS Case 2013–D034,
                                                                                                             parte contacts are prohibited in
                                                    (Counsel to Liberman).                                                                                         using any of the following methods:
                                                                                                             Commission proceedings, such as this
                                                    FOR FURTHER INFORMATION CONTACT:                                                                                  Æ Regulations.gov: http://
                                                                                                             one, which involve channel allotments.
                                                    Andrew J. Rhodes, Media Bureau, (202)                    See 47 CFR 1.1204(b) for rules                        www.regulations.gov. Submit comments
                                                    418–2700.                                                governing permissible ex parte contacts.              via the Federal eRulemaking portal by
                                                    SUPPLEMENTARY INFORMATION: This is a                        For information regarding proper                   entering ‘‘DFARS Case 2013–D034’’
                                                    synopsis of the Commission’s Notice of                   filing procedures for comments, see 47                under the heading ‘‘Enter keyword or
                                                    Proposed Rule Making (‘‘NPRM’’) and                      CFR 1.415 and 1.420.                                  ID’’ and selecting ‘‘Search.’’ Select the
                                                    Order to Show Cause (‘‘OSC’’), MB                                                                              link ‘‘Submit a Comment’’ that
                                                    Docket No. 15–167, adopted July 9,                       List of Subjects in 47 CFR Part 73                    corresponds with ‘‘DFARS Case 2013–
                                                    2015, and released July 10, 2015. The                      Radio, Radio broadcasting.                          D034.’’ Follow the instructions provided
                                                    full text of this Commission decision is                 Federal Communications Commission.                    at the ‘‘Submit a Comment’’ screen.
                                                    available for inspection and copying                                                                           Please include your name, company
                                                    during normal business hours in the                      Nazifa Sawez,                                         name (if any), and ‘‘DFARS Case 2013–
                                                    FCC’s Reference Information Center at                    Assistant Chief, Audio Division, Media                D034’’ on your attached document.
                                                    Portals II, CY–A257, 445 Twelfth Street                  Bureau.                                                  Æ Email: osd.dfars@osd.mil. Include
                                                    SW., Washington, DC 20554. This                            For the reasons discussed in the                    DFARS Case 2013–D034 in the subject
                                                    document does not contain proposed                       preamble, the Federal Communications                  line of the message.
                                                    information collection requirements                      Commission proposes to amend 47 CFR                      Æ Fax: 571–372–6094.
                                                    subject to the Paperwork Reduction Act                   part 73 as follows:                                      Æ Mail: Defense Acquisition
                                                    of 1995, Public Law 104–13. In addition,                                                                       Regulations System, Attn: Mr. Mark
                                                    therefore, it does not contain any                       PART 73—RADIO BROADCAST                               Gomersall, OUSD(AT&L)DPAP/DARS,
                                                    proposed information collection burden                   SERVICES                                              Room 3B855, 3060 Defense Pentagon,
                                                    ‘‘for small business concerns with fewer                                                                       Washington, DC 20301–3060.
                                                    than 25 employees,’’ pursuant to the                     ■ 1. The authority citation for part 73                  Comments received generally will be
                                                    Small Business Paperwork Relief Act of                   continues to read as follows:                         posted without change to http://
                                                    2002, Public Law 107–198, see 44 U.S.C.                    Authority: 47 U.S.C. 154, 303, 334, 336             www.regulations.gov, including any
                                                    3506(c)(4).                                              and 339.                                              personal information provided. To
mstockstill on DSK4VPTVN1PROD with PROPOSALS




                                                       The document solicits comment on                                                                            confirm receipt of your comment(s),
                                                                                                             § 73.202   [Amended]                                  please check www.regulations.gov,
                                                    the proposed allotment of Channel 286A
                                                    at Grant (population 289) because it                     ■ 2. Section 73.202(b), the Table of FM               approximately two to three days after
                                                    could result in a first local service to                 Allotments under Oklahoma, is                         submission to verify posting (except
                                                    that community. The proposed                             amended by adding Grant, Channel                      allow 30 days for posting of comments
                                                    reference coordinates for Channel 286A                   286A.                                                 submitted by mail).
                                                    at Grant are 33–57–16 NL and 95–36–30                    [FR Doc. 2015–18985 Filed 7–31–15; 8:45 am]           FOR FURTHER INFORMATION CONTACT: Mr.
                                                    WL. The NPRM also addresses                              BILLING CODE 6712–01–P                                Mark Gomersall, Defense Acquisition


                                               VerDate Sep<11>2014   18:22 Jul 31, 2015   Jkt 235001   PO 00000   Frm 00019   Fmt 4702   Sfmt 4702   E:\FR\FM\03AUP1.SGM   03AUP1


                                                                            Federal Register / Vol. 80, No. 148 / Monday, August 3, 2015 / Proposed Rules                                             45919

                                                    Regulations System,                                         • Add section 212.209 entitled                     officers must require an offeror to
                                                    OUSD(AT&L)DPAP/DARS, Room                                ‘‘Determination of price                              submit in order to determine whether
                                                    3B855, 3060 Defense Pentagon,                            reasonableness’’;                                     proposed prices for commercial items
                                                    Washington, DC 20301–3060.                                  • Add guidelines at 215.402(a)(3), for             are fair and reasonable. The rule also
                                                    Telephone 571–372–6099.                                  obtaining data other than certified cost              proposes to add three new provisions.
                                                    SUPPLEMENTARY INFORMATION:                               or pricing data;                                         The National Defense Authorization
                                                                                                                • Add instructions at 215.403–5 for                Act (NDAA) for Fiscal Year (FY) 2013
                                                    I. Background                                            the submission of certified cost or                   included section 831, entitled
                                                       DoD is proposing to amend the                         pricing data and data other than                      ‘‘Guidance and Training Related to
                                                    DFARS to implement portions of section                   certified cost or pricing data;                       Evaluating Reasonableness of Price.’’
                                                    831 of the National Defense                                 • Add guidelines at 215.404–1                      Paragraph (a) of section 831 required the
                                                    Authorization Act (NDAA) for Fiscal                      concerning proposal analysis                          issuance of guidance addressing the
                                                    Year (FY) 2013 (Pub. L. 112–239,                         techniques;                                           following four areas:
                                                    enacted January 2, 2013). Title 10,                         • Renumber the paragraph structure                    1. Requirement to include standards
                                                                                                             at 215.404–1–70;                                      for determining whether information on
                                                    United States Code (U.S.C.), mandates
                                                                                                                • Revise the clause prescription at                the prices at which the same or similar
                                                    that offerors submitting proposals for
                                                                                                             215.408, paragraph(3)(i), and add three               items have previously been sold is
                                                    negotiated procurements provide
                                                                                                             new provision prescriptions at                        adequate for evaluating the
                                                    certified cost or pricing data under
                                                                                                             paragraph (6); and                                    reasonableness of price.
                                                    certain circumstances if the estimated                      • Add three new provisions in part                    2. Requirement to include standards
                                                    value of the procurement is above a                      252.                                                  for determining the extent of uncertified
                                                    certain dollar threshold. For other types                                                                      cost information that should be required
                                                    of procurements, e.g., commercial-item                   III. Executive Orders 12866 and 13563
                                                                                                                                                                   in cases in which price information is
                                                    acquisitions, the law requires only that                    Executive Orders (E.O.s) 12866 and                 not adequate for evaluating the
                                                    an offeror provide ‘‘data other than                     13563 direct agencies to assess all costs             reasonableness of price.
                                                    certified cost or pricing data to the                    and benefits of available regulatory                     3. Ensure that in cases in which such
                                                    extent necessary to determine the                        alternatives and, if regulation is                    uncertified cost information is required,
                                                    reasonableness of the price’’ (10 U.S.C.                 necessary, to select regulatory                       the information shall be provided in the
                                                    2306a(d)(1)). Section 831 requires the                   approaches that maximize net benefits                 form in which it is regularly maintained
                                                    issuance of guidance on the use of the                   (including potential economic,                        by the offeror in its business operations.
                                                    authority to require the submission of                   environmental, public health and safety                  4. Provide that no additional cost
                                                    other than cost or pricing data.                         effects, distributive impacts, and                    information may be required by the
                                                    Specifically, section 831, paragraph (a)                 equity). E.O. 13563 emphasizes the                    Department of Defense in any case in
                                                    provides that the guidance accomplish                    importance of quantifying both costs                  which there are sufficient non-
                                                    the following:                                           and benefits, of reducing costs, of                   Government sales to establish
                                                       1. Include standards for determining                  harmonizing rules, and of promoting                   reasonableness of price.
                                                    whether information on the prices at                     flexibility. This is not a significant                   DoD does not expect this proposed
                                                    which the same or similar items have                     regulatory action and, therefore, was not             rule to have a significant economic
                                                    previously been sold is adequate for                     subject to review under section 6(b) of               impact on a substantial number of small
                                                    evaluating the reasonableness of price;                  E.O. 12866, Regulatory Planning and                   entities within the meaning of the
                                                       2. Include standards for determining                  Review, dated September 30, 1993. This                Regulatory Flexibility Act, 5 U.S.C. 601,
                                                    the extent of uncertified cost                           rule is not a major rule under 5 U.S.C.               et seq., because this rule merely
                                                    information that should be required in                   804.                                                  provides guidance to contracting
                                                    cases in which price information is not                                                                        officers on the use of the existing
                                                    adequate for evaluating the                              IV. Regulatory Flexibility Act                        authority to require the submission of
                                                    reasonableness of price;                                    DoD does not expect this proposed                  other than cost or pricing data.
                                                       3. Ensure that in cases in which such                 rule to have a significant economic                      The reporting requirements for small
                                                    uncertified cost information is required,                impact on a substantial number of small               entities do not differ from those for large
                                                    the information shall be provided in the                 entities within the meaning of the                    entities and are covered by OMB
                                                    form in which it is regularly maintained                 Regulatory Flexibility Act, 5 U.S.C. 601,             Control Number 9000–0013, Cost or
                                                    by the offeror in its business operations;               et seq., because the proposed rule does               Pricing Data Exemption. This proposed
                                                    and                                                      not add to or remove any of the existing              rule does not add to or remove any of
                                                       4. Provide that no additional cost                    requirements for the submission of other              the existing requirements; it does clarify
                                                    information may be required by the                       than certified cost or pricing data for the           the limits on the amount and types of
                                                    Department of Defense in any case in                     purpose of determining the                            data that may be required from offerors
                                                    which there are sufficient                               reasonableness of prices proposed for                 so that contracting officers do not
                                                    nongovernment sales to establish                         commercial items. However, an initial                 inadvertently impose submission
                                                    reasonableness of price.                                 regulatory flexibility analysis has been              requirements on small entities or other
                                                                                                             performed and is summarized as                        types of businesses that are excessive.
                                                    II. Discussion and Analysis                                                                                       The rule does not duplicate, overlap,
                                                                                                             follows:
                                                       This rule proposes to amend the                          This initial regulatory flexibility                or conflict with any other Federal rules.
mstockstill on DSK4VPTVN1PROD with PROPOSALS




                                                    DFARS as follows to—                                     analysis has been prepared consistent                 Consistent with the stated objectives of
                                                       • Add new definitions at 202.101 for                  with 5 U.S.C. 603. It addresses                       section 831 of the NDAA for FY 2013
                                                    ‘‘market-based pricing’’ and ‘‘uncertified               additional guidance to be included in                 and with the statutory requirements for
                                                    cost data’’ and at 215.401 for                           the Defense Federal Acquisition                       cost or pricing data in title 10, United
                                                    ‘‘nongovernment sales,’’ ‘‘relevant sales                Regulation Supplement (DFARS)                         States Code (U.S.C.), there is no
                                                    data,’’ and ‘‘sufficient nongovernment                   concerning the appropriate amount and                 alternative to applying the requirements
                                                    sales to establish reasonableness of                     type of other than certified cost or                  for other than cost or pricing data
                                                    price’’;                                                 pricing information that contracting                  equally to small and large entities.


                                               VerDate Sep<11>2014   18:22 Jul 31, 2015   Jkt 235001   PO 00000   Frm 00020   Fmt 4702   Sfmt 4702   E:\FR\FM\03AUP1.SGM   03AUP1


                                                    45920                   Federal Register / Vol. 80, No. 148 / Monday, August 3, 2015 / Proposed Rules

                                                       DoD invites comments from small                       ‘‘market-based pricing’’ and ‘‘uncertified            officer to review, and contains enough
                                                    business concerns and other interested                   cost data’’ to read as follows:                       information to make adjustments
                                                    parties on the expected impact of this                                                                         covered by FAR 15.404 1(b)(2)(ii)(B).
                                                    rule on small entities.                                  202.101    Definitions.                               ■ 5. Amend section 215.402 by adding
                                                       DoD will also consider comments                       *     *     *     *     *                             paragraph (a)(3) to read as follows:
                                                    from small entities concerning the                          Market-based pricing means pricing
                                                    existing regulations in subparts affected                that results when nongovernmental                     215.402    Pricing policy.
                                                    by this rule in accordance with 5 U.S.C.                 buyers drive the price in a commercial                *      *     *    *     *
                                                    610. Interested parties must submit such                 marketplace. When nongovernmental                        (a)(3) When obtaining data other than
                                                    comments separately and should cite 5                    buyers in a commercial marketplace                    certified cost or pricing data (Pub. L.
                                                    U.S.C. 610 (DFARS Case 2013–D034), in                    account for a preponderance (50 percent               112–239 sec. 831)—
                                                    correspondence.                                          or more) of sales by volume of a                         (A) The standard to be used by
                                                                                                             particular item, there is a strong                    contracting officers in determining the
                                                    V. Paperwork Reduction Act                               likelihood the pricing is market based.               adequacy of information on prices at
                                                       This rule affects the information                     *     *     *     *     *                             which same or similar items have been
                                                    collection requirements in the                              Uncertified cost data means the                    sold is whether a prudent person would
                                                    provisions at Federal Acquisition                        subset of ‘‘data other than certified cost            conclude that it is sufficient to
                                                    Regulation (FAR) subpart 15.4, Contract                  or pricing data’’ (see FAR 2.101) that                determine whether the proposed price is
                                                    Pricing (in particular, FAR 15.403,                      relates to cost.                                      fair and reasonable. See 215.404–1 and
                                                    Obtaining Certified Cost or Pricing Data)                *     *     *     *     *                             PGI 215.404–1; and
                                                    and the clauses at FAR 52.215–20,                                                                                 (B) In cases when uncertified cost
                                                    Requirements for Certified Cost or                       PART 212—ACQUISITION OF                               data is necessary to determine that the
                                                    Pricing Data and Data Other Than                         COMMERCIAL ITEMS                                      price is fair and reasonable, the
                                                    Certified Cost or Pricing Data, and FAR                                                                        contracting officer should request
                                                    52.215–21, Requirements for Certified                    ■ 3. Add section 212.209 to subpart                   uncertified cost data only to the extent
                                                    Cost or Pricing Data and Data Other                      212.2 to read as follows:                             that a prudent person would consider
                                                    Than Certified Cost or Pricing Data—                     212.209 Determination of price                        necessary to determine a fair and
                                                    Modifications, currently approved                        reasonableness.                                       reasonable price.
                                                    under OMB Control Number 9000–0013,                                                                            ■ 6. Amend section 215.403–5 by
                                                                                                               In order to establish a fair and
                                                    entitled ‘‘Cost or Pricing Data                          reasonable price based on market-based                adding paragraphs (a) and (b)(2) to read
                                                    Exemption,’’ in accordance with the                      pricing (see 215.404–1), the contracting              as follows:
                                                    Paperwork Reduction Act (44 U.S.C.                       officer shall obtain adequate commercial              215.403–5 Instructions for submission of
                                                    chapter 35). The impact, however, is                     marketplace sales data (see 215.404–                  certified cost or pricing data and data other
                                                    negligible, because the DFARS change                     1(b)) to ensure the price offered to the              than certified cost or pricing data.
                                                    does not add or remove requirements for                  Government is reasonably consistent                     (a) The contracting officer shall not
                                                    submission of other than cost or pricing                 with market-based pricing. When                       limit the Government’s ability to obtain
                                                    data. The DFARS merely provides                          obtaining such data, follow the order of              any data that may be necessary to
                                                    clarification of the circumstances under                 preference at FAR 15.402(a)(2), and                   support a determination of fair and
                                                    which the FAR requires contracting                       otherwise comply with the requirements                reasonable pricing.
                                                    officers to obtain other than cost or                    of FAR part 15, part 215, and PGI part                  (b)(2) If the contracting officer
                                                    pricing data solely for the purpose of                   215.                                                  requires the offeror to provide
                                                    determining reasonableness of prices
                                                                                                                                                                   uncertified cost data, it shall be the form
                                                    proposed by offerors for commercial                      PART 215—CONTRACTING BY                               in which it is regularly maintained by
                                                    items. There are no changes to the                       NEGOTIATION                                           the offeror in its business operations
                                                    existing requirement for supporting cost
                                                                                                             ■ 4. Add section 215.401 to subpart                   (Pub. L. 112–239 sec. 831).
                                                    data for determining price
                                                    reasonableness.                                          215.4 to read as follows:                             *     *      *     *    *
                                                                                                                                                                   ■ 7. Revise section 215.404–1 to read as
                                                    List of Subjects in 48 CFR Parts 202,                    215.401    Definitions.                               follows:
                                                    212, 215, and 252                                          Nongovernment sales means sales of
                                                                                                             the supplies or services to                           215.404–1    Proposal analysis techniques.
                                                      Government procurement.
                                                                                                             nongovernmental entities for purposes                   (b)(2)(ii) In the absence of adequate
                                                    Amy G. Williams,                                         other than governmental purposes.                     price competition in response to the
                                                    Editor, Defense Acquisition Regulations                    Relevant sales data means the subset                solicitation, market-based pricing is the
                                                    System.                                                  of an offeror’s sales data that, as                   preferred method to establish a fair and
                                                      Therefore, 48 CFR parts 202, 212, 215,                 considered by a prudent person, could                 reasonable price (Pub. L. 112–239 sec.
                                                    and 252 are proposed to be amended as                    reasonably be expected to influence the               831).
                                                    follows:                                                 contracting officer’s determination of                  (A)(i) Relevant sales data are a valid
                                                    ■ 1. The authority citation for parts 202,
                                                                                                             price reasonableness, taking into                     basis for price comparison, in the
                                                    212, 215, and 252 continues to read as                   consideration the age, volume, and                    following order of preference:
                                                                                                             nature of the transactions (including any               (a) Relevant sales data for the same
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                                                    follows:
                                                                                                             related discounts, refunds, rebates,                  good or service being acquired that
                                                      Authority: 41 U.S.C. 1303 and 48 CFR                   offsets or other adjustments) in the data             reflect market-based pricing.
                                                    chapter 1.                                               subset.                                                 (b) Relevant sales data for
                                                                                                               Sufficient nongovernment sales to                   substantially similar goods or services
                                                    PART 202—DEFINITIONS OF WORDS
                                                                                                             establish reasonableness of price (see                that reflect market-based pricing.
                                                    AND TERMS
                                                                                                             215.402(a)(3)) exist when relevant sales                (c) Relevant sales data for the same
                                                    ■ 2. Amend section 202.101 by adding,                    data reflects market-based pricing, are               good or services being acquired that do
                                                    in alphabetical order, the definitions for               made available for the contracting                    not reflect market-based pricing.


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                                                                            Federal Register / Vol. 80, No. 148 / Monday, August 3, 2015 / Proposed Rules                                             45921

                                                       (d) Relevant sales data for                             (e) Catalog Prices. Catalog prices are              using FAR part 12 procedures for the
                                                    substantially similar goods or services                  reliable when consistent with relevant                acquisition of commercial items, for a
                                                    that do not reflect market-based pricing.                sales data (including any related                     sole source acquisition from the
                                                       (ii) The contracting officer may obtain               discounts, refunds, rebates, offsets or               Canadian Commercial Corporation that
                                                    additional data necessary to verify the                  other adjustments).                                   does not meet the thresholds specified
                                                    price to be paid is fair and reasonable.                   (B) Terms and conditions, quantities,               in paragraph (3)(i)(A)(1), if approval is
                                                    However, if relevant sales data for the                  and market and economic factors, are                  obtained as required at 225.870–
                                                    same supplies or services being                          materially differing if the differences               4(c)(2)(ii); and
                                                    acquired reflects market-based pricing,                  could reasonably be expected to                          (B) Do not use 252.225–7003 in lieu
                                                    and is made available for the contracting                influence the contracting officer’s                   of 252.215–70XX in competitive
                                                    officer to review, the contracting officer               determination of price reasonableness.                acquisitions.
                                                    shall not obtain uncertified cost data.                    (C) The DoD cadre of experts is
                                                       (iii) When evaluating sales data,                                                                           *       *    *     *    *
                                                                                                             identified at PGI 215.404–2(a)(iii).
                                                    contracting officers shall exercise                                                                               (6) Requirements for certified cost or
                                                                                                             ■ 8. Add section 215.404–1–70 to read
                                                    prudent business judgment and                                                                                  pricing data and data other than
                                                                                                             as follows:
                                                    consider standards such as the                                                                                 certified cost or pricing data.
                                                    following, using the order of preference                 215.404–1–70       Procedures.                           (i) Use the provision at 252.215–
                                                    in FAR 15.402(a) and 215.402(a)(3):                         (a) Follow the procedures at PGI                   70XX, Requirements for Certified Cost
                                                       (a) Market-based pricing. See 202.101.                215.404–1 for proposal analysis.                      or Pricing Data and Data Other Than
                                                       (b) Age of data.                                         (b) For spare parts or support                     Certified Cost or Pricing Data, in lieu of
                                                       (1) Whether data is too old to be                     equipment, perform an analysis of—                    the provision at FAR 52.215–20
                                                    relevant depends on the industry (e.g.,                     (1) Those line items where the                     Requirements for Certified Cost or
                                                    rapidly evolving technologies), product                  proposed price exceeds by 25 percent or               Pricing Data and Data Other Than
                                                    maturity (e.g., stable), economic factors                more the lowest price the Government                  Certified Cost or Pricing Data, in
                                                    (e.g., new sellers in the marketplace),                  has paid within the most recent 12-                   solicitations and contracts when it is
                                                    and various other considerations.                        month period based on reasonably                      reasonably certain that the submission
                                                       (2) A pending sale may be relevant if                 available data;                                       of certified cost or pricing data or data
                                                    it is probable at the anticipated price,                    (2) Those line items where a                       other than certified cost or pricing data
                                                    and the sale could reasonably be                         comparison of the item description and                will be required.
                                                    expected to materially influence the                     the proposed price indicates a potential                 (A) Use the basic provision when the
                                                    contracting officer’s determination of                   for overpricing;                                      submission of certified cost or pricing
                                                    price reasonableness. Consult with the                      (3) Significant high-dollar-value                  data may not be required at the time of
                                                    offeror’s corporate or divisional                        items. If there are no obvious high-                  solicitation, or when submission of
                                                    administrative contracting officer (if                   dollar-value items, include an analysis               certified cost or pricing data is required
                                                    applicable) about future sales.                          of a random sample of items; and                      to be in the format required by FAR
                                                       (c) Volume. The number of                                (4) A random sample of the remaining               Table 15–2.
                                                    transactions must be sufficient to permit                low-dollar value items. Sample size may                  (B) Use the Alternate I provision to
                                                    the contracting officer to make a                        be determined by subjective judgment,                 specify a format for certified cost or
                                                    determination on price reasonableness                    e.g., experience with the offeror and the             pricing data other than the format
                                                    based on the relevant sales data. If the                 reliability of its estimating and                     required by FAR Table 15–2.
                                                    number of transactions is insufficient to                accounting systems.
                                                    make a determination, the contracting                                                                             (ii) Use the provision at 252.215–
                                                                                                             ■ 9. Amend section 215.408 by—
                                                    officer shall consider broadening the                                                                          70YY, Requirements for Submission of
                                                                                                             ■ a. Revising paragraph (3)(i)(A)(1)
                                                    search (e.g., identify whether all                                                                             Proposals to the Administrative
                                                                                                             introductory text;                                    Contracting Officer and Contract
                                                    customers were included) to obtain                       ■ b. Revising paragraph (3)(i)(A)(2)
                                                    additional relevant sales data as                                                                              Auditor, when using the basic or
                                                                                                             introductory text;                                    alternate of the provision at 252.215–
                                                    necessary to make the determination,                     ■ c. Revising paragraph (3)(i)(B)
                                                    following the order of preference at                                                                           70XX if copies of the proposal are to be
                                                                                                             introductory text; and                                sent to the ACO and contract auditor.
                                                    215.404–1(b)(2)(ii)(A)(i), and complying                 ■ d. Adding paragraph (6).
                                                    with FAR 15.402(a)(2).                                      The revisions and addition read as                    (iii) Use the provision at 252.215–
                                                       (d) Nature of transactions. The nature                follows:                                              70ZZ, Requirements for Submission of
                                                    of a sales transaction includes the                                                                            Proposals via Electronic Media, when
                                                    information necessary to understand the                  215.408 Solicitation provisions and                   using the basic or alternate of the
                                                    transaction, such as terms and                           contract clauses.                                     provision at 252.215–70XX if
                                                    conditions, date, quantity sold, sale                    *     *     *     *    *                              submission via electronic media is
                                                    price, the intended end-user, the type of                  (3) * * *                                           required.
                                                    customer (government, distributor, retail                  (i)(A) * * *
                                                    end-user, etc.), and related agreements.                   (1) In lieu of 252.215–70XX,                        PART 252—SOLICITATION
                                                    It also includes information such as                     Requirement for Data Other Than                       PROVISIONS AND CONTRACT
                                                    warranty information, key product                        Certified Cost or Pricing Data, in a                  CLAUSES
                                                    technical specifications, maintenance                    solicitation, including solicitations
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                                                                                                                                                                   ■ 10. Add section 252.215–70XX to read
                                                    agreements, or preferred customer                        using FAR part 12 procedures for the
                                                                                                                                                                   as follows:
                                                    rewards, if they substantially impact                    acquisition of commercial items, for a
                                                    price differences among sales. When                      sole source acquisition from the                      252.215–70XX Requirements for Certified
                                                    relevant sales data has materially                       Canadian Commercial Corporation that                  Cost or Pricing Data and Data Other Than
                                                    differing terms and conditions (see                      is—                                                   Certified Cost or Pricing Data.
                                                    215.404–1(b)(2)(ii)(B)), the contracting                 *     *     *     *    *                                Basic. As prescribed in 215.408(6)(i)
                                                    officer shall adjust the prices as required                (2) In lieu of 252.215–70XX in a                    and (6)(i)(A), use the following
                                                    by FAR 15.404–1(b)(2)(ii)(B).                            solicitation, including solicitations                 provision:


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                                                    45922                   Federal Register / Vol. 80, No. 148 / Monday, August 3, 2015 / Proposed Rules

                                                    Requirements for Certified Cost or                       detailed description of differences or                analysis, the Offeror shall either provide the
                                                    Pricing Data and Data Other Than                         inconsistencies between or among the                  requested information, or provide a written
                                                    Certified Cost or Pricing Data—Basic                     relevant sales data, the proposed price, and          explanation for the inability to fully comply
                                                                                                             the catalog price (including any related              with the request. Before providing an
                                                    (DATE)                                                   discounts, refunds, rebates, offsets or other         explanation for noncompliance, offerors are
                                                                                                             adjustments).]’’;                                     encouraged to clarify the request with the
                                                       (a) Definitions. As used in this provision—
                                                                                                                (B) For items priced using market-based            contracting officer.
                                                       Nongovernment sales means sales of the
                                                                                                             pricing, a description of: the nature of the             (5) Subcontract price evaluation.
                                                    supplies or services to nongovernmental
                                                                                                             commercial market; the methodology used to               (i) Offerors shall obtain from
                                                    entities for purposes other than governmental
                                                                                                             establish a market-based price; and all               subcontractors whatever information is
                                                    purposes.
                                                                                                             relevant sales data. The description shall be         necessary to support a determination of price
                                                       Market-based pricing means pricing that
                                                                                                             adequate to permit the Department of                  reasonableness, as described in FAR part 15
                                                    results when nongovernmental buyers drive
                                                                                                             Defense to verify the accuracy of the                 and DFARS art 215. It may include cost data
                                                    the price in a commercial marketplace. When
                                                                                                             description. If relevant sales data exist, the        to support a commerciality determination,
                                                    nongovernmental buyers in a commercial
                                                                                                             Offeror shall make such data available to the         cost realism analysis, should-cost review, or
                                                    marketplace account for a preponderance (50
                                                                                                             contracting officer for review within 10 days         any other type of analysis addressed by FAR
                                                    percent or more) of sales by volume of a
                                                                                                             of a written request from the contracting             part 15 and DFARS part 215. The data
                                                    particular item, there is a strong likelihood
                                                                                                             officer; and                                          needed from a prospective subcontractor may
                                                    the pricing is market based.
                                                                                                                (C) For items included on an active Federal        include data other than certified cost or
                                                       Relevant sales data means the subset of an
                                                                                                             Supply Service Multiple Award Schedule                pricing data (which includes uncertified cost
                                                    offeror’s sales data that, as considered by a
                                                                                                             contract, proof that an exception has been            data obtained from the subcontractor), and
                                                    prudent person, could reasonably be
                                                                                                             granted for the schedule item.                        information on the prices at which the same
                                                    expected to influence the contracting officer’s
                                                                                                                (2) The Offeror grants the contracting             or similar items have previously been sold.
                                                    determination of price reasonableness, taking
                                                                                                             officer or an authorized representative the              (ii) No additional cost information may be
                                                    into consideration the age, volume, and
                                                                                                             right to examine, at any time before award,           required from a prospective subcontractor in
                                                    nature of the transactions (including any
                                                                                                             books, records, documents, or other directly          any case in which there are sufficient
                                                    related discounts, refunds, rebates, offsets or
                                                                                                             pertinent records to verify any request for an        nongovernment sales of the same item to
                                                    other adjustments) in the data subset.
                                                                                                             exception under this provision, and the               establish reasonableness of price.
                                                       Sufficient nongovernment sales to establish
                                                                                                             reasonableness of price.                                 (iii) If the offeror relies on relevant sales
                                                    reasonableness of price (see DFARS
                                                                                                                (c) Requirements for certified cost or             data for similar items to determine the price
                                                    215.402(a)(3)(A)) exist when relevant sales
                                                                                                             pricing data. If the offeror is not granted an        is reasonable, the Offeror shall obtain only
                                                    data reflects market-based pricing, are made
                                                                                                             exception from the requirement to submit              that technical information necessary to
                                                    available for the contracting officer to review,
                                                    and contains enough information to make                  certified cost or pricing data, the following         support the conclusion that—
                                                    adjustments covered by FAR 15.404                        applies:                                                 (A) The items are technically similar; and,
                                                    1(b)(2)(ii)(B).                                             (1) The Offeror shall prepare and submit              (B) Any dissimilarities should not produce
                                                       (b) Exceptions from certified cost or pricing         certified cost or pricing data, and supporting        a material price difference.
                                                    data.                                                    attachments in accordance with the                       (e) The Offeror shall require all prospective
                                                       (1) In lieu of submitting certified cost or           instructions contained in Table 15–2 of FAR           subcontractors above the simplified
                                                    pricing data, offerors may submit a written              15.408, which is incorporated by reference            acquisition threshold in FAR part 2 to adhere
                                                    request for exception by submitting the                  with the same force and effect as though it           to the requirements of paragraph (c) of this
                                                    information described in the following                   were inserted here in full text. The                  provision when determining that the
                                                    paragraphs. The Contracting Officer may                  instructions in Table 15–2 are incorporated           proposed prices from prospective lower-tier
                                                    require additional supporting information,               as a mandatory format to be used in this              subcontractors are fair and reasonable.
                                                    but only to the extent necessary to determine            contract, unless the Contracting Officer and
                                                                                                             the Offeror agree to a different format and           (End of provision)
                                                    whether an exception should be granted, and
                                                                                                             change this provision to use Alternate I.               Alternate I. As prescribed in
                                                    whether the price is fair and reasonable.
                                                       (i) Identification of the law or regulation              (2) As soon as practicable after agreement         215.408(6)(i) and (6)(i)(B), use the
                                                    establishing the price offered. If the price is          on price, but before contract award (except           following provision, which includes a
                                                    controlled under law by periodic rulings,                for unpriced actions such as letter contracts),       different paragraph (c)(1).
                                                    reviews, or similar actions of a governmental            the Offeror shall submit a Certificate of
                                                    body, attach a copy of the controlling                   Current Cost or Pricing Data, as prescribed by        Requirements for Certified Cost or
                                                    document, unless it was previously                       FAR 15.406–2.                                         Pricing Data and Data Other Than
                                                    submitted to the contracting office.                        (d) Requirements for data other than               Certified Cost or Pricing Data—
                                                       (ii) Commercial item exception. For a                 certified cost or pricing data.                       Alternate I (DATE)
                                                    commercial item exception, the offeror shall                (1) Data other than certified cost or pricing
                                                    submit, at a minimum, information on prices              data submitted in accordance with this                  (a) Definitions. As used in this provision—
                                                    at which the same item or similar items have             provision shall include all data necessary to           Nongovernment sales means sales of the
                                                    previously been sold in the commercial                   permit a determination that the proposed              supplies or services to nongovernmental
                                                    market that is adequate for evaluating the               price is fair and reasonable, to include the          entities for purposes other than governmental
                                                    reasonableness of the price for this                     requirements in DFARS 215.402 and DFARS               purposes.
                                                    acquisition. Such information shall include—             215.404–1.                                              Market-based pricing means pricing that
                                                       (A) For items priced based on a catalog—                 (2) In cases in which uncertified cost data        results when nongovernmental buyers drive
                                                       (1) A copy of the offeror’s current catalog           is required, the information shall be provided        the price in a commercial marketplace. When
                                                    showing the price for that item; and                     in the form in which it is regularly                  nongovernmental buyers in a commercial
                                                       (2) Either of the following two alternative           maintained by the offeror or prospective              marketplace account for a preponderance (50
                                                    statements, included in the proposal:                    subcontractor in its business operations.             percent or more) of sales by volume of a
                                                       (i) ‘‘The catalog provided with this                     (3) The Offeror shall provide information          particular item, there is a strong likelihood
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                                                    proposal is consistent with all relevant sales           described as follows: [Insert description of          the pricing is market based.
                                                    data (including any related discounts,                   the data and the format that are required,              Relevant sales data means the subset of an
                                                    refunds, rebates, offsets or other                       including access to records necessary to              offeror’s sales data that, as considered by a
                                                    adjustments). Relevant sales data shall be               permit an adequate evaluation of the                  prudent person, could reasonably be
                                                    made available upon request of the                       proposed price in accordance with FAR                 expected to influence the contracting officer’s
                                                    contracting officer.’’                                   15.403–3.]                                            determination of price reasonableness, taking
                                                       (ii) ‘‘The catalog provided with this                    (4) Within 10 days of a written request            into consideration the age, volume, and
                                                    proposal is not consistent with all relevant             from the contracting officer to the offeror for       nature of the transactions (including any
                                                    sales data, due to the following: [Insert a              additional information to support proposal



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                                                                            Federal Register / Vol. 80, No. 148 / Monday, August 3, 2015 / Proposed Rules                                                  45923

                                                    related discounts, refunds, rebates, offsets or          books, records, documents, or other directly          subcontractor), and information on the prices
                                                    other adjustments) in the data subset.                   pertinent records to verify any request for an        at which the same or similar items have
                                                       Sufficient nongovernment sales to establish           exception under this provision, and the               previously been sold.
                                                    reasonableness of price (see DFARS                       reasonableness of price.                                 (ii) No additional cost information may be
                                                    215.402(a)(3)(A)) exist when relevant sales                 (c) Requirements for certified cost or             required from a prospective subcontractor in
                                                    data reflects market-based pricing, are made             pricing data. If the offeror is not granted an
                                                                                                                                                                   any case in which there are sufficient
                                                    available for the contracting officer to review,         exception from the requirement to submit
                                                    and contains enough information to make                  certified cost or pricing data, the following         nongovernment sales of the same item to
                                                    adjustments covered by FAR 15.404                        applies:                                              establish reasonableness of price.
                                                    1(b)(2)(ii)(B).                                             (1) The Offeror shall submit certified cost           (iii) If the offeror relies on relevant sales
                                                       (b) Exceptions from certified cost or pricing         or pricing data, data other than certified cost       data for similar items to determine the price
                                                    data.                                                    or pricing data, and supporting attachments           is reasonable, the Offeror shall obtain only
                                                       (1) In lieu of submitting certified cost or           in the following format: [Insert description of       that technical information necessary to
                                                    pricing data, offerors may submit a written              the data and format that are required, and            support the conclusion that—
                                                    request for exception by submitting the                  include access to records necessary to permit            (A) The items are technically similar; and
                                                    information described in the following                   an adequate evaluation of the proposed price             (B) Any dissimilarities should not produce
                                                    paragraphs. The Contracting Officer may                  in accordance with FAR 15.408, Table 15–2,
                                                                                                                                                                   a material price difference.
                                                    require additional supporting information,               Note 2. The description may be inserted at
                                                    but only to the extent necessary to determine            the time of issuing the solicitation, or the             (e) The Offeror shall require all prospective
                                                    whether an exception should be granted, and              Contracting Officer may specify that the              subcontractors above the simplified
                                                    whether the price is fair and reasonable.                format regularly maintained by the offeror or         acquisition threshold in FAR part 2 to adhere
                                                       (i) Identification of the law or regulation           prospective subcontractor in its business             to the requirements of paragraph (c) of this
                                                    establishing the price offered. If the price is          operations will be acceptable, or the                 provision when determining that the
                                                    controlled under law by periodic rulings,                description may be inserted as the result of          proposed prices from prospective lower-tier
                                                    reviews, or similar actions of a governmental            negotiations].                                        subcontractors are fair and reasonable.
                                                    body, attach a copy of the controlling                      (2) As soon as practicable after agreement
                                                    document, unless it was previously                       on price, but before contract award (except           (End of provision)
                                                    submitted to the contracting office.                     for unpriced actions such as letter contracts),
                                                       (ii) Commercial item exception. For a                 the Offeror shall submit a Certificate of             ■ 11. Add section 252.215–70YY to read
                                                    commercial item exception, the offeror shall             Current Cost or Pricing Data, as prescribed by        as follows:
                                                    submit, at a minimum, information on prices              FAR 15.406–2.
                                                    at which the same item or similar items have                (d) Requirements for data other than               252.215–70YY Requirements for
                                                    previously been sold in the commercial                   certified cost or pricing data.                       Submission of Proposals to the
                                                    market that is adequate for evaluating the                  (1) Data other than certified cost or pricing      Administrative Contracting Officer and
                                                    reasonableness of the price for this                     data submitted in accordance with this                Contract Auditor.
                                                    acquisition. Such information may include—               provision shall include all data necessary to
                                                       (A) For items priced based on a catalog—              permit a determination that the proposed                As prescribed in 215.408(6)(iii), use
                                                       (1) A copy of the offeror’s current catalog           price is fair and reasonable, to include the          the following provision:
                                                    showing the price for that item; and                     requirements in DFARS 215.402 and DFARS
                                                       (2) Either of the following two alternative           215.404–1.
                                                                                                                                                                   Requirements for Submission of
                                                    statements, included in the proposal:                       (2) In cases in which uncertified cost data        Proposals to the Administrative
                                                       (i) ‘‘The catalog provided with this                  is required, the information shall be provided        Contracting Officer and Contract
                                                    proposal is consistent with all relevant sales           in the form in which it is regularly                  Auditor (DATE)
                                                    data (including any related discounts,                   maintained by the offeror or prospective
                                                    refunds, rebates, offsets or other                       subcontractor in its business operations.               When the proposal is submitted, the
                                                    adjustments). Relevant sales data shall be                  (3) The Offeror shall provide information          Offeror shall also submit one copy each to—
                                                    made available upon request of the                       described as follows: [Insert description of            (a) The Administrative Contracting Officer,
                                                    contracting officer.’’                                   the data and the format that are required,            and
                                                       (ii) ‘‘The catalog provided with this                 including access to records necessary to
                                                                                                                                                                     (b) The Contract Auditor.
                                                    proposal is not consistent with all relevant             permit an adequate evaluation of the
                                                    sales data, due to the following: [Insert a              proposed price in accordance with FAR
                                                    detailed description of differences or                   15.403–3.]                                            (End of provision)
                                                    inconsistencies between or among the                        (4) Within 10 days of a written request            ■ 12. Add section 252.215–70ZZ to read
                                                    relevant sales data, the proposed price, and             from the contracting officer to the offeror for       as follows:
                                                    the catalog price (including any related                 additional information to support proposal
                                                    discounts, refunds, rebates, offsets or other            analysis, the Offeror shall either provide the        252.215–70ZZ Requirements for
                                                    adjustments).]’’;                                        requested information, or provide a written           Submission of Proposals via Electronic
                                                       (B) For items priced using market-based               explanation for refusing to comply with the           Media.
                                                    pricing, a description of the nature of the              request. Before providing a refusal and
                                                    commercial market; the methodology used to               explanation, offerors are encouraged to                 As prescribed in 215.408(6)(iv), use
                                                    establish a market-based price; and all                  clarify the request with the contracting              the following provision:
                                                    relevant sales data. The description shall be            officer.
                                                    adequate to permit the Department of                        (5) Subcontract price evaluation.                  Requirements for Submission of
                                                    Defense to verify the accuracy of the                       (i) Offerors shall obtain from                     Proposals Via Electronic Media (DATE)
                                                    description. If relevant sales data exist, the           subcontractors whatever information is
                                                    Offeror shall make such data available to the            necessary to support a determination of price           The Offeror shall submit the cost portion
                                                    contracting officer for review within 10 days            reasonableness, as described in FAR part 15           of the proposal via the following electronic
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                                                    of a written request from the contracting                and DFARS part 215. The information may               media: [Insert media format, e.g., electronic
                                                    officer; and                                             include cost data to support a commerciality          spreadsheet format, electronic mail, etc.].
                                                       (C) For items included on an active Federal           determination, cost realism analysis, should-
                                                    Supply Service Multiple Award Schedule                   cost review, or any other type of analysis            (End of provision)
                                                    contract, proof that an exception has been               addressed by FAR part 15 and DFARS part
                                                    granted for the schedule item.                           215. The data needed from a prospective               [FR Doc. 2015–18938 Filed 7–31–15; 8:45 am]
                                                       (2) The Offeror grants the contracting                subcontractor may include data other than             BILLING CODE 5001–06–P
                                                    officer or an authorized representative the              certified cost or pricing data (which includes
                                                    right to examine, at any time before award,              uncertified cost data obtained from the



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Document Created: 2018-02-23 10:51:24
Document Modified: 2018-02-23 10:51:24
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments on the proposed rule should be submitted in writing to
ContactMr. Mark Gomersall, Defense Acquisition Regulations System, OUSD(AT&L)DPAP/DARS, Room 3B855, 3060 Defense Pentagon, Washington, DC 20301-3060. Telephone 571-372-6099.
FR Citation80 FR 45918 
RIN Number0750-AI64
CFR Citation48 CFR 202
48 CFR 212
48 CFR 215
48 CFR 252

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