DCAAM 7641.90
33 ENCLOSURE 3
Procurement Act, as modified by the Federal Acquisition Streamlining Act (FASA) of 1994 and
the Clinger-Cohen Act of 1996 [also known as the Federal Acquisition Reform Act of 1996
(FARA)], and as codified at 10 USC 2306a. Under FASA, procurements by civilian agencies are
subject to parallel requirements effective December 5, 1994. These requirements appear at 41
USC 254b. The purpose of these statutes is to put the Government on equal footing with
contractors when negotiating non-competitive or sole source contracts. FAR Parts 15 and 52
contain uniform implementing regulations and contract clauses.
b. The statutes require the submission and certification of cost or pricing data in conjunction
with the pricing of negotiated prime contracts and subcontracts exceeding $700,000. This
threshold is subject to adjustment every five years. However, if a fair and reasonable price
cannot be determined, the head of the contracting activity may require cost or pricing data for
procurements below the cost or pricing data threshold, but not for those at or below the
simplified acquisition threshold [FAR 15.403-4(a)(2)]. Cost or pricing data is not obtained for
acquisitions at or below the simplified acquisition threshold of $100,000. There are, however,
exceptions to cost or pricing data requirements, specifically, when prices are based on adequate
price competition, set by law or regulations, or when a commercial item is being acquired. The
head of the contracting activity may also grant waivers for submission of cost or pricing data in
exceptional cases. FAR 15.403-1 discusses these exceptions. The statutory requirements also
apply to modifications of negotiated or advertised contracts or subcontracts, contract termination
actions, and final pricing actions under price redeterminable contracts that exceed $700,000.
Contract and subcontract changes or modifications are subject to the requirements if the total
amount of both the related increases and decreases exceeds $700,000, even though the net
change in price is less than $700,000 [FAR 15.403-4(a)(1)].
c. If none of the exceptions are applicable, the CO is required to obtain cost or pricing data
before the award of negotiated contracts exceeding the $700,000 threshold (FAR 15.403-4(a)).
The contractor must submit, either actually or by specific identification in writing, the cost or
pricing data with its proposal submission. Merely making available books, records, and other
documents without identification does not constitute submission of cost or pricing data. To meet
the statutory requirement for meaningful disclosure of current, accurate, and complete data, the
contractor must provide any new or revised data obtained after the date of the original cost
proposal, but before negotiations are complete. The data should be promptly submitted in a
manner that clearly shows how the information relates to the offeror’s price proposal.
d. DCAA selects negotiated pricing actions (prime contracts, subcontracts, modifications,
final price redeterminations, equitable adjustments, and terminations) for audit on a systematic
basis to determine compliance with the statutes. Selection considers such factors as contract type
and dollar value of the contract, adequacy of accounting and estimating systems, and the number
of instances and amount of defective pricing found in prior audits. Selection of a contract for
this type of audit (commonly referred to as a postaward audit) is not an indicator of any
impropriety on the part of the contractor.