By Craig Stetson CPA, CGMA
Director | Government Contract Regulatory Compliance Practice
A proposed rule to amend the DFARS was issued today to provide further guidance when performing price reasonableness analyses related to the purchase of commercial items. This proposed rule is the outcome of the NDAA for fiscal year 2013. https://www.federalregister.gov/articles/2015/08/03/2015-18938/defense-federal-acquisition-regulation-supplement-evaluating-price-reasonableness-for-commercial
Specific proposed amendments are:
- Add new definitions at 202.101 for “market-based pricing” and “uncertified cost data” and at 215.401 for “nongovernment sales,” “relevant sales data,” and “sufficient nongovernment sales to establish reasonableness of price”;
- Add section 212.209 entitled “Determination of price reasonableness”;
- Add guidelines at 215.402(a)(3), for obtaining data other than certified cost or pricing data;
- Add instructions at 215.403-5 for the submission of certified cost or pricing data and data other than certified cost or pricing data;Show citation box
- Add guidelines at 215.404-1 concerning proposal analysis techniques;
- Renumber the paragraph structure at 215.404-1-70;
- Revise the clause prescription at 215.408, paragraph(3)(i), and add three new provision prescriptions at paragraph (6); and
- Add three new provisions in part 252.
The price reasonableness determination is typically step two in the overall process. Step one requires, first, that the item meets the definition of a commercial item pursuant to FAR Part 2. This has been a real problem lately for both contractors and the government COs. Hopefully, the DCMA task force that is currently under formation will address these step one challenges to allow greater consistency across the buying commands.
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