A while back, I wrote an article addressing the risk associated with submitting “other than certified cost or pricing data.” Nothing has changed. When you are requested to submit “data other than certified cost or pricing data,” it must be current, accurate, and complete as of the date of submission. However, you have no requirement to update the contracting officer after submission.
What I want to address in this article is what you should and should not do when you receive a request to submit “data other than certified cost or pricing data.”
What You Should NOT Do When You Receive a Request
Do not provide the contracting officer with a FAR 15.408 Table 15-2 type proposal, even if the contracting officer assures you that no certification will be required.
FAR 52.215-20, Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data, and 52.215-21, Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data-Modifications, both provide when “certified cost or pricing data” is not required, “[t]he Contracting Officer may require additional supporting information, but only to the extent necessary to determine … the price is fair and reasonable.” Additionally, FAR 15.402(a)(3) instructs the contracting officer to “[o]btain the type and quantity of data necessary to establish a fair and reasonable price, but not more data than is necessary.” This is due to the fact that “[r]equesting unnecessary data can lead to increased proposal preparation costs, generally extend acquisition lead time, and consume additional contractor and Government resources.”
Clearly, this language does more than simply remove the certification requirement. The intent is for the contracting officer to rely on pricing analysis and request limited additional cost data that may be necessary to determine the price is fair and reasonable.
What You Should Do When You Receive a Request
I know what you are going to say, “Is some of what I suggest really the contracting officer’s job as part of his/her FAR part 10 market research?” Of course, it is. But if you do not assist them with getting to pricing data, they are just going to keep pushing you for cost data.
Lead that horse to water. Force-feed the mouse an entire meal, if necessary. It will hopefully benefit you in the long run.
Here is What I Suggest:
- Start by giving the contracting officer sales data from other commercial and Government customers. Customer names should be redacted. However, we have had the Government want to come on-site and see the original documents.
- You know your competition for similar products and services; help the contracting officer leverage what you know. At least, get them pointed in the right direction.
- Meet with the contracting officer to understand their underlying concern. Then give them just the cost data necessary to address their concerns.
- Be ready to address the contracting officer’s concern that the Government thinks it has already paid for a good bit of the cost under prior contracts. Development cost is a prime example.
While submitting an uncertified cost proposal is not where you want to go, you do want the contracting officer to come to a fair and reasonable price and award you the contract.
We do need to remember that contracting officers are coming under fire for contracts where others (e.g., Congress, DoD IG, and GAO) believe there has been “price gouging.” The key is to remind the contracting officer that competitive market pricing is what is expected, prior to going to cost data.
Maintaining Compliance and Supporting Contract Success
Understanding what to provide when requested to submit “data other than certified cost or pricing data,” is essential to protecting your position while meeting the Government’s requirements. By focusing on relevant, accurate, and sufficient information, you can help the contracting officer reach a fair and reasonable price without unnecessarily increasing your risk.
Redstone GCI supports government contractors with compliance consulting, audit support, cost and pricing analysis, and business system guidance to help you navigate these requirements effectively. Our team works alongside you to ensure your data submissions align with regulatory expectations and support the successful award and performance of your contracts.
John is a Director with Redstone Government Consulting, Inc. providing government contract consulting services to our clients primarily related to the DFARS business systems, CAS Disclosure Statements, and DCAA/DCMA compliance preparation, advisory, and defense. Prior to joining Redstone Government Consulting, John served in a number of capacities with DCAA/DCMA for more than 30 years. Upon his retirement, he was based in Texas as an SES-level Corporate Audit Director for DCAA, managing a staff of 300 auditors at one of the largest DOD programs. Professional Experience John began his career in the late 80s working in the Clearwater, FL audit office and over the next three decades he progressed through a number of positions within both DCAA and DCMA with career highlights as DCAA Program Manager at Ft. Belvoir, Chief of Technical Programs Division, Deputy Assistant Director-Policy, Director of the DCMA Cost and Pricing Center, the SES-level Lockheed Martin Corporate Audit Director, and Director of Integrity and Quality Assurance. John’s three decades of experience in performing and leading DCAA auditors and DCMA reviewers provides a wealth of expertise to our clients. John’s role, not only in the performance of audits, but also in the development of audit policy affords him unique insights into the defense of audit findings and the linkage of audit program steps to the underlying regulatory framework. He is an expert in FAR, DFARS, and other agency acquisition regulation, as well as a subject matter expert in the Cost Accounting Standards having reviewed and provided audit feedback on many of the largest and most complex cost accounting practices during his tenure with the DCAA. John’s tenure with DCAA and DCMA came at a critical time during each agency’s history where a number of changes were occurring such as the response to the ICS backlog, development of audit approaches to the DFARS Business Systems and implementation of new audit initiatives as a result of Congressional oversight through the NDAA process. John’s leadership at the DCMA Cost & Pricing center saw oversight of all major DOD pricing actions, leadership of should cost review teams, the Commercial Pricing group and many other areas of strategic value to our clients. His involvement in these and other Agency initiatives is of great value to our clients due to his in depth understanding of DCAA and DCMA’s internal policy directives. Education John holds a Master of Business Administration and a B.A. in Accounting from the University of South Florida. Certifications Certified Information Systems Auditor State of Alabama Certified Public Accountant