MP5315.4 - Contract Pricing

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Mandatory Procedure

MP5315.4 -
Contract Pricing

[ Revised May 25, 2018 ]

1. Proposal Instructions. To facilitate timely awards of sole source contract actions and definitization of Undefinitized Contract Actions (UCA) within 180-days after issuance of the UCA, contracting officers must:

2. Proposal Kick-Off and Proposal Walk-Through Meetings. For all sole source contract actions greater than $50M and any UCA greater than $1M, contracting officers must:

3. Requesting data/documentation after receipt of the proposal.


NOTE: The blue italicized text below represents instructions for the CO and should be removed prior to incorporating Section L into the solicitation.

(a) In response to this Request for Proposals (RFP), the offeror shall prepare and submit certified cost or pricing data and supporting attachments in accordance with Table 15-2 of FAR 15.408. Further, the offeror shall (1) utilize the DFARS 252.215-7009, Proposal Adequacy Checklist (PAC), in pre-submission proposal quality reviews, and (2) furnish the completed checklist as part of their proposal submission.

(b) The offeror is advised that the contracting officer may find costs associated with revision/rework of inadequate cost proposals unreasonable, and will consider the nature and extent of any proposal inadequacies when assessing/negotiating profit.

(c) In order to preclude delays in negotiations and contract award, the completed PAC submitted with the proposal shall provide a clear explanation for any checklist items not included in the proposal, particularly items not provided based on any of the five exceptions to TINA found at FAR 15.403-1(b).

(d) Cost Proposal Requirements. In addition to the requirements identified in the DFARS PAC, the following also apply to the cost proposal submitted in response to this RFP.

The proposal shall define the timeframe of the Contractor Fiscal Year (for example, January – December).

Note that per FAR 15.403-1(c)(3)(iii)(B), modifications that meet the definition of minor modifications of a type not customarily available in the commercial marketplace as defined in FAR 2.101, paragraph (3)(ii) of the commercial item definition, will require the submission of certified cost and pricing data when the total price of all such modifications exceeds the greater of the threshold for certified cost or pricing data (FAR 15.403-4) or 5% of the total price of the contract at the time of contract award.


Note that the preferred method of establishing the price reasonableness of commercial items is to obtain commercial sales data. It is recognized that other methods, such as market price assessment data or evaluation of cost data not subject to certification, are also acceptable when prior sales data cannot be obtained. Sales data shall (1) demonstrate sales to the general public; (2) be current; and (3) where possible, be in like quantities. Items sold to state, local, or foreign governments or items sold with applications only to state, local, or foreign government or US Government end items are not considered to be sales to the general public unless the proposed commercial item meets the FAR 2.101 commercial item definition sub-definition (8).

Add the following paragraph to provision L-XXX, Cost Proposal Adequacy and Structure, only when an electronic version of the cost proposal with active formulas (e.g., in Excel) is required. This paragraph may be tailored as necessary to describe the specific requirements of the electronic cost model.

(e) Submission of electronic cost model. (Tailor as needed for each specific circumstance. If electronic cost models are required for any subcontractors or affiliates, identify those requirements within this paragraph.) The proposal submission shall include an electronic cost model with active formulas demonstrating the mathematical calculation of the proposed cost (in Excel or other format approved by the Contracting Officer). The electronic cost model shall include build-up by year of cost in total and by CLIN/subCLIN, consistent with the yearly breakout required by paragraph (d)(1) of this provision, or as directed by the Contracting Officer. If applicable, the electronic cost model shall link each Work Breakdown Structure (WBS) to the applicable CLINs. The electronic cost model shall roll up to an annual and total program summary by cost element. All information supporting each CLIN should be visible and verifiable in the electronic cost model. The formulas included in the electronic cost model shall not be locked, and the model shall be editable by the Government.

NOTE: The blue italicized text above represents instructions for the CO and should be removed prior to incorporating Section L into the solicitation.

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