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  • Question

    Could you please provide clarification on how the Oct-1-10 revision to the FAR 15.403-1(c)(3)(iii) impacts a sole-sourced solicitation in excess of the simplified acquisition threshold for a purported "commercial" item (a commercial item requiring minor modifications for a military application) that is funded by the DOD? The Oct-1-10 revised FAR 15.403-1(c)(3)(iii)(C)states, "For acquisitions funded by DoD, NASA, or Coast Guard such modifications of a commercial item are not exempt from the requirement for submission of certified cost or pricing data on the basis of the exemption provided for at FAR 15.403-1(c)(3) if the total price of all such modifications under a particular contract action exceeds the greater of the threshold for obtaining certified cost or pricing data in 15.403-4 or 5 percent of the total price of the contract at the time of contract award." Does this revision to the FAR, allow for requiring a contractor to provide "certified cost or pricing data" in connection with sole-sourced solicitations in excess of the simplified acquisition threshold for a purported "commercial" item (a commercial item requiring minor modifications for a military application) that is funded by the DOD?


    Answer

    Acquisitions funded by DoD, NASA or the Coast Guard have more stringent requirements than other agencies and such modifications of a commercial item are not exempt from the requirement for submission of certified cost or pricing data on the basis of the exemption provided for at FAR 15.403-1(c)(3) - Commercial items.

    If the total price of all such modifications under a particular contract action exceed the "greater" of the $700,000 threshold for obtaining certified cost or pricing data in 15.403-4 or 5 percent of the total price of the contract at the time of contract award, then certified cost or pricing data is required. The FAR doesn't reference in excess of the simplified acquisition threshold of $150,000 to meet the certification requirement.

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