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  • Question

    Is certified cost and pricing data required for the initial award? Is it required for the modification and if so, is for the modification dollar amount or the entire contract value?


    Answer

    Reference is made to FAR 15.403 - - Obtaining Certified Cost or Pricing Data, and 10 USC 2306a, Truth in Negotiations Act (TINA). The threshold is applied using the individual dollar value of the contract, subcontract, or (contract/subcontract) modification. The eventual value of those individual contract actions, not the original proposed value, is determinative. Although your original solicitation did not rise above the threshold, the eventual requirement from the supplier to perform that contract did rise above the threshold – therefore certified data was/is required. Although the basic contract would then did require certified data, the modification would not require certified data since the value of just that modification was below the threshold. The same would be true even in the opposite circumstance. The basic contract might have been exempt from requiring certified cost or pricing data (perhaps because award based upon adequate price competition); but certified cost or pricing data would still be required for any modification should the value of that modification exceed the TINA threshold.

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