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   <concept id="DFARS_PGI_PGI_215.403-3"
            outputclass="4"
            ditaarch:DITAArchVersion="1.2"
            class="- topic/topic concept/concept ">
      <title class="- topic/title ">
         <ph props="autonumber" class="- topic/ph ">PGI 215.403-3</ph> Requiring data
other than certified cost or pricing data.</title>
      <conbody class="- topic/body  concept/conbody ">
         <p class="- topic/p ">To the extent that certified cost or pricing data are
not required by FAR
15.403-4 and there is no other means for the contracting officer
to determine that prices are fair and reasonable, the offeror is
required to submit “data other than certified cost or pricing data”
(see definition at FAR
2.101). In accordance with FAR 15.403-3(a), the offeror must
provide appropriate data on the prices at which the same or similar
items have previously been sold, adequate for determining the reasonableness
of the price. The following clarifies these requirements:</p>
         <p outputclass="List2" class="- topic/p ">(1) <i class="+ topic/ph hi-d/i ">Data other than certified</i>
            <i class="+ topic/ph hi-d/i ">cost
or pricing data</i>. When certified cost or pricing data are not
required, the contracting officer must obtain whatever data is necessary
in order to determine the reasonableness of the price. The FAR defines
this as “data other than certified cost or pricing data.” When TINA
does not apply and there is no other means of determining that prices
are fair and reasonable, the contracting officer must obtain appropriate
data on the prices at which the same or similar items have been
sold previously, adequate for evaluating the reasonableness of the
price. Sales data must be comparable to the quantities, capabilities,
specifications, etc., of the product or service proposed. Sufficient
steps must be taken to verify the integrity of the sales data, to
include assistance from the Defense Contract Management Agency, the
Defense Contract Audit Agency, and/or other agencies if required.
See PGI 215.404-1 (DFARS/PGI view) for more detailed procedures
for obtaining data from offerors to determine price reasonableness.</p>
         <p outputclass="List2" class="- topic/p ">(2) Previously been sold. Contracting officers
shall request offerors to provide data related to prior sales (or
“offered for sale”) in support of price reasonableness determinations.</p>
         <p outputclass="List2" class="- topic/p ">(3) Adequacy of sales data for pricing.
The contracting officer must determine if the prior sales data is
sufficient for determining that prices are fair and reasonable.
If the sales data is not sufficient, additional data shall be obtained,
including cost data if necessary. See PGI 215.404-1 (DFARS/PGI view)
for more detailed procedures for obtaining whatever data is needed
to determine fair and reasonable prices.</p>
         <p outputclass="List2" class="- topic/p ">(4) Reliance on prior prices paid by the
Government. Before relying on a prior price paid by the Government,
the contracting officer must verify and document that sufficient
analysis was performed to determine that the prior price was fair
and reasonable. Sometimes, due to exigent situations, supplies or
services are purchased even though an adequate price or cost analysis
could not be performed. The problem is exacerbated when other contracting
officers assume these prices were adequately analyzed and determined
to be fair and reasonable. The contracting officer also must verify
that the prices previously paid were for quantities consistent with
the current solicitation. Not verifying that a previous analysis
was performed, or the consistencies in quantities, has been a recurring
issue on sole source commercial items reported by oversight organizations.
Sole source commercial items require extra attention to verify that
previous prices paid on Government contracts were sufficiently analyzed
and determined to be fair and reasonable. At a minimum, a contracting
officer reviewing price history shall discuss the basis of previous
prices paid with the contracting organization that previously bought
the item. These discussions shall be documented in the contract
file.</p>
         <p outputclass="List2" class="- topic/p ">(5) Canadian Commercial Corporation. All
contracts with the Canadian Commercial Corporation (CCC) are placed
in accordance with the practices, policies and procedures of the
Government of Canada covering procurement for defense purposes (See
PGI 
               <xref href="PGI_225.870.dita#DFARS_PGI_PGI_225.870"
                  base="DFARS-PGI_PGI_225.870"
                  outputclass="fm:ParaNumOnly"
                  class="- topic/xref "
                  xtrc="225.870">225.870</xref>
            ).
Contracting Officers may rely on the confirmation and endorsement
of the offer from the Canadian Commercial Corporation at <xref href="225.870-3.dita#DFARS_225.870-3"
                  base="DFARS-225.870-3"
                  outputclass="fm:ParaNumOnly"
                  class="- topic/xref "
                  xtrc="225.870-3">225.870-3</xref>(a) as an endorsement
of the cost/price as no more than would be charged to the Canadian
government.</p>
         <p outputclass="List3" class="- topic/p ">(i) When <xref href="252.215-7003.dita#DFARS_252.215-7003"
                  base="DFARS-252.215-7003"
                  outputclass="fm:ParaNumOnly"
                  class="- topic/xref "
                  xtrc="252.215-7003">252.215-7003</xref> or <xref href="252.215-7004.dita#DFARS_252.215-7004"
                  base="DFARS-252.215-7004"
                  outputclass="fm:ParaNumOnly"
                  class="- topic/xref "
                  xtrc="252.215-7004">252.215-7004</xref> are
included in a solicitation with the Canadian Commercial Corporation,
the data required by paragraph (b)(i) and (ii), in concert with
the confirmation and endorsement of the offer, is intended to meet
the requirements of FAR
15.404-1 for documentation of fair and reasonable pricing.</p>
         <p outputclass="List3" class="- topic/p ">(ii) Use of <xref href="252.215-7003.dita#DFARS_252.215-7003"
                  base="DFARS-252.215-7003"
                  outputclass="fm:ParaNumOnly"
                  class="- topic/xref "
                  xtrc="252.215-7003">252.215-7003</xref> or <xref href="252.215-7004.dita#DFARS_252.215-7004"
                  base="DFARS-252.215-7004"
                  outputclass="fm:ParaNumOnly"
                  class="- topic/xref "
                  xtrc="252.215-7004">252.215-7004</xref> in
sole source acquisitions not meeting the threshold at <xref href="215.408.dita#DFARS_215.408"
                  base="DFARS-215.408"
                  outputclass="fm:ParaNumOnly"
                  class="- topic/xref "
                  xtrc="215.408">215.408</xref>(2)(i)(A) or (ii)(A)<i class="+ topic/ph hi-d/i ">(1)</i> or
competitive acquisitions at any dollar value shall be supported
by a determination and finding justifying the anticipated need for
data other than certified cost or pricing data to determine a fair
and reasonable price.</p>
         <p outputclass="List3" class="- topic/p ">(iii) When the contracting officer anticipates
the need for additional data to establish a fair and reasonable
price, specific data should be requested at time of solicitation
as detailed in DFARS <xref href="252.215-7003.dita#DFARS_252.215-7003"
                  base="DFARS-252.215-7003"
                  outputclass="fm:ParaNumOnly"
                  class="- topic/xref "
                  xtrc="252.215-7003">252.215-7003</xref>.</p>
         <p outputclass="List3" class="- topic/p ">(iv) Examples of clause use:</p>
         <p class="- topic/p ">Scenario Requirement</p>
         <table frame="all" colsep="0" rowsep="0" class="- topic/table ">
            <tgroup cols="2"
                    colsep="0"
                    rowsep="0"
                    outputclass="Table"
                    class="- topic/tgroup ">
               <colspec colnum="1"
                        colname="1"
                        colwidth="50*"
                        colsep="0"
                        class="- topic/colspec "
                        rowheader="headers"/>
               <colspec colnum="2"
                        colname="2"
                        colwidth="50*"
                        colsep="0"
                        class="- topic/colspec "
                        rowheader="headers"/>
               <tbody class="- topic/tbody ">
                  <row rowsep="0" class="- topic/row ">
                     <entry colname="1" class="- topic/entry ">
                        <p class="- topic/p ">Sole source to CCC, fixed price, with estimated
value of $600 million.</p>
                     </entry>
                     <entry colname="2" class="- topic/entry ">
                        <p class="- topic/p ">Include provision and clause in accordance
with <xref href="215.408.dita#DFARS_215.408"
                                 base="DFARS-215.408"
                                 outputclass="fm:ParaNumOnly"
                                 class="- topic/xref "
                                 xtrc="215.408">215.408</xref>(2)(i)(A)<i class="+ topic/ph hi-d/i ">(2)</i>and
(ii)(A(<i class="+ topic/ph hi-d/i ">1</i>)<i class="+ topic/ph hi-d/i ">(ii)</i>, respectively, because estimated value
exceeds $500 million.</p>
                     </entry>
                  </row>
                  <row rowsep="0" class="- topic/row ">
                     <entry colname="1" class="- topic/entry ">
                        <p class="- topic/p ">Sole source to CCC, cost reimbursement,
with estimated value of $800,000.</p>
                     </entry>
                     <entry colname="2" class="- topic/entry ">
                        <p class="- topic/p ">Include provision and clause in accordance
with <xref href="215.408.dita#DFARS_215.408"
                                 base="DFARS-215.408"
                                 outputclass="fm:ParaNumOnly"
                                 class="- topic/xref "
                                 xtrc="215.408">215.408</xref>(2)(i)(A)<i class="+ topic/ph hi-d/i ">(1)</i>and
(ii)(A(<i class="+ topic/ph hi-d/i ">1</i>)<i class="+ topic/ph hi-d/i ">(i)</i>, respectively, because estimated value
exceeds $750,000.</p>
                     </entry>
                  </row>
                  <row rowsep="0" class="- topic/row ">
                     <entry colname="1" class="- topic/entry ">
                        <p class="- topic/p ">Sole source to CCC, cost-reimbursement,
with estimated value of $500,000.</p>
                     </entry>
                     <entry colname="2" class="- topic/entry ">
                        <p class="- topic/p ">Do not include provision and clause, unless
D&amp;F is approved in accordance with <xref href="215.408.dita#DFARS_215.408"
                                 base="DFARS-215.408"
                                 outputclass="fm:ParaNumOnly"
                                 class="- topic/xref "
                                 xtrc="215.408">215.408</xref>(2)(i)(B)and (ii)(A)(<i class="+ topic/ph hi-d/i ">2</i>)),
respectively, because estimated value does not exceed $750.000.</p>
                     </entry>
                  </row>
                  <row rowsep="0" class="- topic/row ">
                     <entry colname="1" class="- topic/entry ">
                        <p class="- topic/p ">Sole source to CCC, fixed price, with estimated
value of $800,000</p>
                     </entry>
                     <entry colname="2" class="- topic/entry ">
                        <p class="- topic/p ">Do not include provision and clause, unless
D&amp;F is approved in accordance with <xref href="215.408.dita#DFARS_215.408"
                                 base="DFARS-215.408"
                                 outputclass="fm:ParaNumOnly"
                                 class="- topic/xref "
                                 xtrc="215.408">215.408</xref>(2)(i)(B)and (ii)(A)(<i class="+ topic/ph hi-d/i ">2</i>)),
respectively, because estimated value does not exceed $500 million.</p>
                     </entry>
                  </row>
                  <row rowsep="0" class="- topic/row ">
                     <entry colname="1" class="- topic/entry ">
                        <p class="- topic/p ">Modifications to contracts that include
the clause <xref href="252.215-7004.dita#DFARS_252.215-7004"
                                 base="DFARS-252.215-7004"
                                 outputclass="fm:ParaNumOnly"
                                 class="- topic/xref "
                                 xtrc="252.215-7004">252.215-7004</xref>.</p>
                     </entry>
                     <entry colname="2" class="- topic/entry ">
                        <p class="- topic/p ">If <xref href="252.215-7004.dita#DFARS_252.215-7004"
                                 base="DFARS-252.215-7004"
                                 outputclass="fm:ParaNumOnly"
                                 class="- topic/xref "
                                 xtrc="252.215-7004">252.215-7004</xref> is
included in the contract, then data are required for modifications
valued above the simplified acquisition threshold, or a higher threshold
specified in the solicitation by the contracting officer, in accordance
with <xref href="252.215-7004.dita#DFARS_252.215-7004"
                                 base="DFARS-252.215-7004"
                                 outputclass="fm:ParaNumOnly"
                                 class="- topic/xref "
                                 xtrc="252.215-7004">252.215-7004</xref>(b).</p>
                     </entry>
                  </row>
               </tbody>
            </tgroup>
         </table>
         <p outputclass="List2" class="- topic/p ">(6) <i class="+ topic/ph hi-d/i ">Reporting requirements</i>.</p>
         <p outputclass="List3" class="- topic/p ">(i) All contracting officers are required
to document, collect, and provide a report to the head of the contracting
activity of all denials of contracting officer requests to offerors/contractors
for data other than certified cost or pricing data that are not
resolved through the elevation process at PGI 
               <xref href="PGI_215.404-1.dita#DFARS_PGI_PGI_215.404-1"
                  base="DFARS-PGI_PGI_215.404-1"
                  outputclass="fm:ParaNumOnly"
                  class="- topic/xref "
                  xtrc="215.404-1">215.404-1</xref>
            (a)(i)(A)
and, therefore, require a determination by the head of the contracting
activity in accordance with FAR
15.403-3(a)(4).</p>
         <p outputclass="List3" class="- topic/p ">(ii) The head of the contracting activity
shall consolidate and validate this information and forward it in
the standard digital format available at https://www.acq.osd.mil/dpap/index.html
to fulfill the reporting requirement to the Director, Defense Pricing
and Contracting (DPC). The first quarter for reporting will be April
1 - June 30, 2019, with the reports due to DPC by July 30, 2019,
and 30 days after the end of each quarterly reporting period thereafter.
Transmit reports electronically to DPC at osd.pentagon.ousd-a-s.mbx.dpc-pci@mail.mil.</p>
         <p outputclass="List3" class="- topic/p ">(iii) The report shall contain the following
information for each reported occurrence:</p>
         <p outputclass="List4" class="- topic/p ">(A) Contracting activity/DOD Activity Address
Code.</p>
         <p outputclass="List4" class="- topic/p ">(B) Name, email address, and telephone
number of the procuring contracting officer (PCO) that requested
the data.</p>
         <p outputclass="List4" class="- topic/p ">(C) Name of the offeror/contractor that
denied the request.</p>
         <p outputclass="List4" class="- topic/p ">(D) Commercial and Government Entity (CAGE)
code.</p>
         <p outputclass="List4" class="- topic/p ">(E) Contract number.</p>
         <p outputclass="List4" class="- topic/p ">(F) Part number and national stock number.</p>
         <p outputclass="List4" class="- topic/p ">(G) Whether the offeror/contractor is an
exclusive dealer for the Original Equipment Manufacturer.</p>
         <p outputclass="List4" class="- topic/p ">(H) Date of initial request.</p>
         <p outputclass="List4" class="- topic/p ">(I) Type of data requested.</p>
         <p outputclass="List4" class="- topic/p ">(J) Number of requests made.</p>
         <p outputclass="List4" class="- topic/p ">(K) Number of denials received.</p>
         <p outputclass="List4" class="- topic/p ">(L) Date of final request.</p>
         <p outputclass="List4" class="- topic/p ">(M) Reason for denial.</p>
         <p outputclass="List4" class="- topic/p ">(N) Reason data is needed.</p>
         <p outputclass="List4" class="- topic/p ">(O) HCA determination that it is in the
best interests of DoD to purchase from the supplier.</p>
         <p outputclass="List4" class="- topic/p ">(P) Plan for avoiding situation in future.</p>
         <p outputclass="List3" class="- topic/p ">(iv) DPC will establish a team of functional
experts from the military departments and defense agencies to analyze
the data reported as a result of this requirement. The team of functional
experts will—</p>
         <p outputclass="List4" class="- topic/p ">(A) Assess parts and offerors/contractors
deemed to be at high risk for unreasonable pricing and identify
trends; and</p>
         <p outputclass="List4" class="- topic/p ">(B) Perform price analysis and cost analysis
of high-risk parts to identify lower cost alternatives or fair and
reasonable pricing for future procurements.</p>
      </conbody>
   </concept>
</dita>
