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<dita>
   <concept id="DFARS_PGI_215.403-3"
            outputclass="4"
            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) <i class="+ topic/ph hi-d/i ">Analysis of historical prices
               paid by the Government</i>. </p>
         <p outputclass="List3" class="- topic/p ">(i) The contracting officer shall
            consider prices paid by the Government and commercial customers. The
            contracting officer shall not rely solely on a prior price paid by the
            Government, without further analysis (see FAR 15.404).</p>
         <p outputclass="List4" class="- topic/p ">(A) The contracting officer shall
            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. </p>
         <p outputclass="List4" class="- topic/p ">(B) The contracting officer also
            shall investigate and document the following considerations: </p>
         <p outputclass="List5" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">1</i>) verify that the
            quantities were similar for pricing purposes, making adjustments as
            necessary to ensure comparability with the current quantity
            requirement; </p>
         <p outputclass="List5" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">2</i>) Consider whether the
            historical purchases were recent enough to be relevant for the
            purpose of establishing price reasonableness of the current
            acquisition, and escalate or deflate the historical prices as
            appropriate to facilitate comparison to the current proposed price;
            and </p>
         <p outputclass="List5" class="- topic/p ">(<i class="+ topic/ph hi-d/i ">3</i>) Validate that the terms
            and conditions associated with the historical purchases were
            comparable to the current terms and conditions, or adjust the
            historical prices in a manner that accounts for the materially
            differing terms and conditions . </p>
         <p outputclass="List3" class="- topic/p ">(ii) Not verifying that a previous analysis was performed, or the consistencies in quantities, has been a recurring issue on sole source commercial products and commercial services reported by oversight organizations. Sole source commercial products and commercial services require extra attention to verify that previous prices paid on Government contracts were sufficiently analyzed and determined to be fair and reasonable. </p>
         <p outputclass="List3" class="- topic/p ">(iii) 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) <i class="+ topic/ph hi-d/i ">Canadian Commercial
               Corporation.</i> 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_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 " outputclass="List4">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 in the standard
            digital format (see paragraph (ii) of this section to the (HCA) 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_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 (HCA) in accordance
            with FAR 15.403-3(a)(4).</p>
         <p outputclass="List3" class="- topic/p ">(ii) The (HCA) shall consolidate and validate this information for all impacted contracts and modifications regardless of dollar value and submit the information in the standard digital format available at <xref href="https://www.acq.osd.mil/dpap/dars/pgi/docs/Denials_Template_1-24-21"
                  format="html"
                  scope="external"
                  class="- topic/xref "/>. A completed report or note of no findings is required to the Principal Director, Defense Pricing, Contracting, and Acquisition Policy (DPCAP). Reports are due to DPCAP 30 days after the end of each quarterly reporting period. Transmit reports electronically to DPCAP at <xref href="https://www.acq.osd.mil/dpap/dars/pgi/docs/Denials_Template_1-24-21"
                  format="html"
                  scope="external"
                  class="- topic/xref ">osd.pentagon.ousd-a-s.mbx.dpc-pcf@mail.mil</xref>.</p>
         <p outputclass="List2" class="- topic/p ">(7)
               <i class="+ topic/ph hi-d/i ">Delegation.</i> The HCA may delegate, no lower than one level
            above the contracting officer, the authority to determine whether it
            is in the best interest of the Government to issue an award in
            accordance with DFARS <xref href="215.403-3.dita#DFARS_215.403-3"
                  outputclass="fm:ParaNumOnly"
                  class="- topic/xref ">215.403-3</xref>(a)(4). This
            designee may be the individual responsible for approval of the
            prenegotiation objective (see DFARS <xref href="215.406-1.dita#DFARS_215.406-1"
                  outputclass="fm:ParaNumOnly"
                  class="- topic/xref ">215.406-1</xref>), unless that
            individual is the contacting officer.</p>
      </conbody>
   </concept>
</dita>
