Question

What are the distinctions between the certified cost and pricing data and information other than cost or pricing data?

Answer 1

Certified Cost:

Cost or pricing data that were required to be submitted in accordance with FAR 15.403-4 and 15.403-5 and are required to be certified, per FAR15.406-2. See also, 10 U.S.C. 2306a and 41 U.S.C. 254b • Certification states that, to the best of the signatory’s knowledge and belief, the cost or pricing data are accurate, complete, and current as of a date the date of agreement on contract price (or other agreedupon date) • The obligation to provide “certified cost or pricing data” creates potential “defective pricing” liability and increased risk of fraud and false claims allegations for non-compliance

cost or pricing data:

“All facts that, as of the date of price agreement, or, if applicable, an earlier date agreed upon by the parties that is as close as practicable to the date of price agreement, prudent buyers and sellers would reasonably expect to affect price negotiations significantly” >The concept of “significant affect” is not defined in the FAR and often is ignored by Government auditors; almost every dollar is considered significant – no amount is too small to pursue >But, the DCAA Audit manual states that TINA price adjustments of up to 5% of the contract value or $50,000, whichever is less, normally should be considered immaterial

Cost or pricing data includes more than just historical accounting data; they are all the “facts” reasonably relevant to evaluate estimates of future costs and to the validity of costs already incurred. This may include, but is not limited to: 1) Vendor quotes; 2) Nonrecurring costs; 3) Information on changes in production methods and in production or purchasing volume; 4) Data supporting projections of business prospects and objectives and related operations costs; 5) Unit-cost trends such yield rates and labor efficiency; 6) Make-or-buy decisions; 7) Estimated resources to attain business goals; and 8) Some information on significant management decisions

information other than cost or pricing data

Judgments and pure estimates are not cost or pricing data

When certified cost or pricing data are not required, contracting officers shall obtain data other than certified cost or pricing data as necessary to establish a fair and reasonable price, generally using the following order of preference in determining the type of data required: I. No additional data from the offeror, if the price is based on adequate price competition II. Data other than certified cost or pricing data such as – a. Data related to prices – e.g., established catalog or market prices, sales to non-governmental and governmental entities – relying first on data available within the Government; second, on data obtained from sources other than the offeror; and, if necessary, on data obtained from the offeror b. Cost data to the extent necessary for the contracting officer to determine a fair and reasonable price