# AFFARS MP5315.403-1

#### Mandatory Procedure

MP5315.403-1
Prohibition on Obtaining Cost or Pricing Data

[Revised October 30, 2009]

(c) Standards for exceptions from cost or pricing data requirements.

(3) Commercial Items

(B) Annual Reporting Requirements. In order to fulfill the requirement for DoD to submit an annual report to Congress, MAJCOM/DRU Senior Contracting Officials (SCO) shall annually identify commercial item exceptions to the requirements of the Truth In Negotiations Act (TINA) for any contract, subcontract, or modification from the previous fiscal year expected to have a value of $15,000,000 or more. For all commercial item exceptions meeting that threshold, MAJCOM/DRU SCOs shall submit the information as required in paragraph (i) below no later than 15 October each year. If no commercial item exceptions meeting the threshold were granted during the previous fiscal year, submit a negative report no later than 15 October each year. Submit the report to HQ AFMC/PKQI, the designated Air Force focal point for consolidation of the reports. HQ AFMC/PKQI shall consolidate all of the MAJCOM and DRU reports and submit a final report to SAF/AQCP no later than 8 November each year. SAF/AQCP shall submit the report to the Director, Defense Procurement and Acquisition Policy (DPAP), ATTN: DPAP/CPF.

(1) Commercial Item Exceptions to TINA Requirement. For contracts, subcontracts, and modifications of $15,000,000 or more, MAJCOM/DRU SCOs shall submit the following information:

(i) Contractor Name and Contract Number, including Modification Number if applicable.

(ii) Program Name.

(iii) CLIN(s) for excepted item(s).

(iv) Activity (with contact information).

(v) Total dollar amount of exception.

(vi) Explanation of basis for determination that the products or services to be purchased are commercial items.

(vii) Discussion on how the price was determined to be fair and reasonable including an identification of specific steps taken to ensure price reasonableness.

(4) Waivers

(A) Request for waiver of the cost or pricing data requirement shall be submitted through the MAJCOM/DRU SCO to SAF/AQCK, safaqck.workflow@pentagon.af.mil, for HCA approval. SAF/AQCK will ensure waiver requests in excess of $100 million are coordinated with the senior procurement executive prior to the HCA granting the waiver.

(1) Requests for waiver of certified cost or pricing data shall include a clear description
of how the three criteria for granting a waiver of cost or pricing data under the exceptional circumstances exception (see DFARS 215.403-1(c)(4)(A)) will be met. When the waiver is for a subcontractor who has refused to provide cost or pricing data to a prime contractor, the information required shall cover both the prime contract and subcontract. The waiver request shall also include the following information:

(i) Contract type and number, RFP or purchase request number, including supplemental agreement number;

(ii) A concise description of supplies or services being purchased;

(iii) A description of any outside influences or time pressures;

(iv) Complete company name and location;

(v) If applicable, a complete description of the data the contractor or subcontractor refuses to submit and the basis for refusal (include all correspondence);

(vi) If applicable, names and titles of the contractor and/or subcontractor personnel contacted and the Government personnel making the contact; and

(vii) A summary statement of the approval action being requested.

(B) Annual Reporting Requirements. In order to fulfill the requirement for DoD to submit an annual report to Congress, MAJCOM/DRU Senior Contracting Officials (SCO) shall annually identify and report TINA waivers for any contract, subcontract, or modification from the previous fiscal year expected to have a value of $15,000,000 or more. For all TINA waivers meeting that threshold, MAJCOM/DRU SCOs shall submit the information as required in paragraph (i) below no later than 15 October each year. If no waivers meeting the threshold were granted during the previous fiscal year, submit a negative report no later than 15 October each year. Submit the report to HQ AFMC/PKQI, the designated Air Force focal point for consolidation of the reports. HQ AFMC/PKQI shall consolidate all of the MAJCOM and DRU reports and submit a final report to SAF/AQCP no later than 8 November each year. SAF/AQCP shall submit the report to the Director, Defense Procurement and Acquisition Policy (DPAP), ATTN: DPAP/CPF.

(1) Waiver of TINA Requirements. For contracts, subcontracts, and modifications of $15,000,000 or more, MAJCOM/DRU SCOs shall submit the following information:

(i) Contractor Name and Contract Number, including Modification Number if applicable).

(ii) Program Name

(iii) CLIN(s)

(iv) Activity (with contact information)

(v) Total dollar amount waived:

(vi) Discussion of the rationale supporting the decision to waive TINA requirements. Must include a discussion of the three criteria that must be met to grant a TINA waiver under the exceptional circumstances exception (see DFARS 215.403-1(c)(4)(A)). These criteria are:

(a) The property or services cannot reasonably be obtained under the contract, subcontract, or modification, without the granting of the waiver;

(b) The price can be determined to be fair and reasonable without the submission of certified cost or pricing data; and

(c) There are demonstrated benefits to granting the waiver.

(5) Additional Reporting Requirements.

(A) Signed TINA Waivers. SAF/AQCK shall submit a copy of all signed TINA waivers to SAF/AQCP and HQ AFMC/PKQI within 30 days of signature by the HCA. Copies of the signed waivers may be submitted via email to safaqcp.workflow@pentagon.af.mil and AFMC/PK workflow. Waiver packages should include all supporting documentation explaining how the action met the three criteria for a TINA waiver must accompany the signed document. This requirement applies to all actions at or above the cost or pricing data threshold identified in FAR 15.403-4(a)(1).