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    A contractor proposal is comprised of subcontractors proposals. These costs or prices may vary from 10,000 to 700,000 or more. My question is, if a subcontractor proposes a price or a cost that is equal to or greater than 700,000 the sub is required to submit certified cost or pricing data; subsequently, the prime is required to submit certified cost or pricing data, but if a contractor cost consists of multiple subs proposing costs that do not exceed $700,000, but the overall contract proposal exceeds 700,000 is the contractor required to submit certified cost or pricing data? If the Prime has multiple proposals and all the proposals are in the competitive range, but are equal to or greater than 700,000 is certified cost or pricing data required


    Answer

    The determination of whether cost or pricing data is required for a contract modification is determined by the aggregate price from the prime, not the individual amounts of subcontractor prices. Once you hit $650,000, and no exceptions apply, cost or pricing data (and the accompanying certification) must be obtained. 
     
    15.403-4 Requiring cost or pricing data (10 U.S.C. 2306a and 41 U.S.C. 254b).
     
    (a)(1) The contracting officer must obtain cost or pricing data only if the contracting officer concludes that none of the exceptions in 15.403-1 <https://www.acquisition.gov/far/html/Subpart 15_4.html#wp1208385> (b) applies. However, if the contracting officer has sufficient information available to determine price reasonableness, then the contracting officer should consider requesting a waiver under the exception at 15.403-1 <https://www.acquisition.gov/far/html/Subpart 15_4.html#wp1208385> (b)(4). The threshold for obtaining cost or pricing data is $650,000. Unless an exception applies, cost or pricing data are required before accomplishing any of the following actions expected to exceed the current threshold or, for existing contracts, the threshold specified in the contract:
     
    (i) The award of any negotiated contract (except for undefinitized actions such as letter contracts).
     
    (ii) The award of a subcontract at any tier, if the contractor and each higher-tier subcontractor were required to submit cost or pricing data (but see waivers at 15.403-1 <https://www.acquisition.gov/far/html/Subpart 15_4.html#wp1208385> (c)(4)).
     
    (iii) The modification of any sealed bid or negotiated contract (whether or not cost or pricing data were initially required) or any subcontract covered by paragraph (a)(1)(ii) of this subsection. Price adjustment amounts must consider both increases and decreases (e.g., a $200,000 modification resulting from a reduction of $500,000 and an increase of $300,000 is a pricing adjustment exceeding $650,000). This requirement does not apply when unrelated and separately priced changes for which cost or pricing data would not otherwise be required are included for administrative convenience in the same modification. Negotiated final pricing actions (such as termination settlements and total final price agreements for fixed-price incentive and redeterminable contracts) are contract modifications requiring cost or pricing data if—
     
    (A) The total final price agreement for such settlements or agreements exceeds the pertinent threshold set forth at paragraph (a)(1) of this subsection; or
     
    (B) The partial termination settlement plus the estimate to complete the continued portion of the contract exceeds the pertinent threshold set forth at paragraph (a)(1) of this subsection (see 49.105 <https://www.acquisition.gov/far/html/Subpart 49_1.html#wp1085135> (c)(15)).
     
    (2) Unless prohibited because an exception at 15.403-1 <https://www.acquisition.gov/far/html/Subpart 15_4.html#wp1208385> (b) applies, the head of the contracting activity, without power of delegation, may authorize the contracting officer to obtain cost or pricing data for pricing actions below the pertinent threshold in paragraph (a)(1) of this subsection, provided the action exceeds the simplified acquisition threshold. The head of the contracting activity shall justify the requirement for cost or pricing data. The documentation shall include a written finding that cost or pricing data are necessary to determine whether the price is fair and reasonable and the facts supporting that finding.
     
     

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