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  • Question

    Can a modification on a task order to extend the period of performance not require certified cost or pricing data since the ceiling is not being increased?


    Answer

    I don't know all of the circumstances surrounding the FPRA rates used by the contractor in their proposal.  While you did say the rates are "current", it's unclear from what point in time they were considered current?  For example, if the "current rates" are the same rates that were used in the original task order, then the Contractor already certified to their rates when their certificate for the original task order was submitted.  If the rates in question are "current" as of a new FPRA issued subsequent to the award of the original task order, then perhaps the rates in their proposal are really just interim rates being incorporated for billing purposes.  It's not unusual for rates to be adjusted and incorporated on an annual basis under a long-term CPFF contract.  When the only purpose of the modification is for incorporating new interim billing rates (in other words, the estimated cost is not being increased for new work or, for that matter, any other reason according to your background information), then certified cost or pricing data would not be required.  In fact, it sounds like, for everyone's convenience, two separate actions are being accomplished under a single modification: 1) a no cost extension to the period of performance and 2) incorporation of adjusted interim billing rates.  If that's true, FAR 15.403-2 states certified cost or pricing data would not be required.  A determination of whether or not a new certificate is required doesn't need to be made until such time that the final costs are negotiated for the CPFF task order.  Bottom line: I would discuss this with your cognizant ACO responsible for negotiating the FPRA rates with your contractor before taking any further action. 

    APPLICABLE REFERENCE: FAR 15.403-2 Other circumstances where certified cost or pricing data are not required.

          (a) The exercise of an option at the price established at contract award or initial negotiation does not require submission of certified cost or pricing data.

          (b) Certified cost or pricing data are not required for proposals used solely for overrun funding or interim billing price adjustments.

     

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