Obtaining Cost or Pric-
ing Data Certification
FAR 15.804-4
Processing Delays
FAR 22.805(a)()Gi)
FAR 22.1007(b)
5.1.5 Determine Ap-
propriate Considera-
tion
FAR 48,104
CHAPTER 5
and the modification does not change the contract or subcontract to
one for the acquisition of other than a commercial item.
If the modification changes the nature of the work to the commer-
cial item or adds other noncommercial work, then obtaining cost or
pricing data for the changed work is not prohibited.
When cost or pricing data are required, the contractor must be required to
execute a Certificate of Current Cost or Pricing Data, which must be in-
cluded in the contract file.
Evaluating a change can be extremely time-consuming. You may need to
comply with legal or administrative requirements that apply to contracts
for the increased dollar value of the contract as changed. Two examples
make the point,
EEO Clearance. When a change raises a contract's total value over
$1,000,000, you need to obtain an approval for compliance with equal
opportunity. If the Department of Labor has no compliance approval on
record for the contractor, there would be a delay while an approval was
processed.
Wage Determinati When a modification includes a significant
amount of new work covered by the Service Contract Act and/or per-
formed by new categories of service workers not included on wage deter-
minations obtained for the basic contract, you are required to obtain a
wage determination covering these new categories.
‘The regulations are not clear as to when new service work is significant
but certainly when the dollar value of work to be performed by persons
within these new service categories exceeds $2,500, the threshold for ap-
plicability of the Act on a new procurement, an additional wage determi-
tion would be appropriate for a modification as well.
‘The job of a contract administrator is to ensure faimess to both contracting
parties, and to evaluate the relevance of consideration to both the contrac-
tor and the Government, Base your evaluation on what is equitable and
reasonable for the particular circumstances surrounding a change. Some-
times consideration has been predetermined or limited based on a formula
or a restriction contained within a contract itself, as with a sharing ar
rangement relative to acquisition savings calculated for a value engineer-
ing change proposal.
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