252.215-7000 Pricing Adjustments.
252.215-7001 Reserved.
252.215-7002 Cost Estimating System Requirements.
252.215-7003 Excessive Pass-Through Charges – Identification
of Subcontract Effort.
252.215-7004 Excessive Pass-Through Charges.
252.215-7005 Evaluation Factor for Employing or
Subcontracting with Members of the Selected Reserve.
252.215-7006 Use of Employees or Individual Subcontractors
Who are Members of the Selected Reserve.
252.215-7000 Pricing Adjustments.
As prescribed in 215.408(1), use the following clause:
PRICING ADJUSTMENTS (DEC
1991)
The term “pricing adjustment,” as used in paragraph (a) of the clauses
entitled “Price Reduction for Defective Cost or Pricing Data--Modifications,”
“Subcontractor Cost or Pricing Data,” and “Subcontractor Cost or Pricing
Data--Modifications,” means the aggregate increases and/or decreases in cost
plus applicable profits.
(End of clause)
252.215-7001 Reserved.
252.215-7002 Cost Estimating System Requirements.
As prescribed in 215.408(2), use the following clause:
COST ESTIMATING SYSTEM
REQUIREMENTS (DEC 2006)
(a) Definitions.
“Acceptable estimating
system” means an estimating system that—
(1) Is maintained, reliable, and consistently
applied;
(2) Produces verifiable, supportable, and
documented cost estimates that are an acceptable basis for negotiation of fair
and reasonable prices;
(3) Is consistent with and integrated with the
Contractor’s related management systems; and
(4) Is subject to applicable financial control
systems.
“Estimating system” means
the Contractor's policies, procedures, and practices for generating estimates
of costs and other data included in proposals submitted to customers in the
expectation of receiving contract awards.
Estimating system includes the Contractor's—
(1) Organizational structure;
(2) Established lines of authority, duties, and
responsibilities;
(3) Internal controls and managerial reviews;
(4) Flow of work, coordination, and
communication; and
(5) Estimating methods, techniques, accumulation
of historical costs, and other analyses used to generate cost estimates.
(b) General. The Contractor shall establish, maintain, and
comply with an acceptable estimating system.
(c) Applicability.
Paragraphs (d) and (e) of this clause
apply if the Contractor is a large business and either—
(1) In its fiscal year preceding award of this
contract, received Department of Defense (DoD) prime contracts or subcontracts,
totaling $50 million or more for which cost or pricing data were required; or
(2) In its fiscal year preceding award of this
contract—
(i) Received DoD prime contracts or subcontracts
totaling $10 million or more (but less than $50 million) for which cost or
pricing data were required; and
(ii) Was notified in writing by the Contracting
Officer that paragraphs (d) and (e) of this clause apply.
(d) System
requirements.
(1) The Contractor shall disclose its estimating
system to the Administrative Contracting Officer (ACO) in writing. If the Contractor wishes the Government to
protect the information as privileged or confidential, the Contractor must mark
the documents with the appropriate legends before submission.
(2) An estimating system disclosure is acceptable
when the Contractor has provided the ACO with documentation that—
(i) Accurately describes those policies,
procedures, and practices that the Contractor currently uses in preparing cost
proposals; and
(ii) Provides sufficient detail for the Government
to reasonably make an informed judgment regarding the acceptability of the
Contractor's estimating practices.
(3) The Contractor shall—
(i) Comply with its disclosed estimating system;
and
(ii) Disclose significant changes to the cost
estimating system to the ACO on a timely basis.
(e) Estimating
system deficiencies.
(1) The Contractor shall respond to a written
report from the Government that identifies deficiencies in the Contractor's
estimating system as follows:
(i) If the Contractor agrees with the report
findings and recommendations, the Contractor shall—
(A) Within 30 days, state its agreement in
writing; and
(B) Within 60 days, correct the deficiencies or
submit a corrective action plan showing proposed milestones and actions leading
to elimination of the deficiencies.
(ii) If the Contractor disagrees with the report,
the Contractor shall, within 30 days, state its rationale for disagreeing.
(2) The ACO will evaluate the Contractor's
response and notify the Contractor of the determination concerning remaining
deficiencies and/or the adequacy of any proposed or completed corrective
action.
(End of clause)
252.215-7003 Excessive Pass-Through Charges – Identification
of Subcontract Effort.
As prescribed
in 215.408(3), use
the following provision:
EXCESSIVE PASS-THROUGH CHARGES –
IDENTIFICATION OF SUBCONTRACT EFFORT (MAY
2008)
(a)
Definitions. “Added value,” “excessive pass-through
charge,” “subcontract,” and “subcontractor,” as used in this provision, are
defined in the clause of this solicitation entitled “Excessive Pass-Through
Charges” (DFARS 252.215-7004).
(b)
General. The offeror’s proposal shall exclude
excessive pass-through charges.
(c)
Performance of work by the
Contractor or a subcontractor.
(1) The offeror shall identify in its proposal
the total cost of the work to be performed by the offeror, and the total cost
of the work to be performed by each subcontractor, under the contract, task
order, or delivery order.
(2) If the offeror intends to subcontract more
than 70 percent of the total cost of work to be performed under the contract,
task order, or delivery order, the offeror shall identify in its proposal—
(i) The amount of the offeror’s indirect costs
and profit applicable to the work to be performed by the subcontractor(s); and
(ii) A description of the added value provided by
the offeror as related to the work to be performed by the subcontractor(s).
(3) If any subcontractor proposed under the
contract, task order, or delivery order intends to subcontract to a lower-tier
subcontractor more than 70 percent of the total cost of work to be performed
under its subcontract, the offeror shall identify in its proposal—
(i) The amount of the subcontractor’s indirect
costs and profit applicable to the work to be performed by the lower-tier
subcontractor(s); and
(ii) A description of the added value provided by
the subcontractor as related to the work to be performed by the lower-tier
subcontractor(s).
(End of provision)
252.215-7004 Excessive Pass-Through Charges.
As prescribed
in 215.408(4), use
the following clause:
EXCESSIVE PASS-THROUGH CHARGES (MAY 2008)
(a)
Definitions. As used in this clause—
“Added value” means that the
Contractor performs subcontract management functions that the Contracting
Officer determines are a benefit to the Government (e.g., processing orders of
parts or services, maintaining inventory, reducing delivery lead times,
managing multiple sources for contract requirements, coordinating deliveries,
performing quality assurance functions).
“Excessive pass-through charge,”
with respect to a Contractor or subcontractor that adds no or negligible value
to a contract or subcontract, means a charge to the Government by the
Contractor or subcontractor that is for indirect costs or profit on work
performed by a subcontractor (other than charges for the costs of managing
subcontracts and applicable indirect costs and profit based on such costs).
“No or negligible value” means the
Contractor or subcontractor cannot demonstrate to the Contracting Officer that
its effort added value to the contract or subcontract in accomplishing the work
performed under the contract (including task or delivery orders).
“Subcontract” means any contract,
as defined in section 2.101 of the Federal Acquisition Regulation, entered into
by a subcontractor to furnish supplies or services for performance of the
contract or a subcontract. It includes
but is not limited to purchase orders, and changes and modifications to
purchase orders.
“Subcontractor” means any
supplier, distributor, vendor, or firm that furnishes supplies or services to
or for the Contractor or another subcontractor.
(b)
General. The Government will not pay excessive
pass-through charges. The Contracting
Officer shall determine if excessive pass-through charges exist.
(c)
Required reporting of performance of work by the Contractor or a
subcontractor. The Contractor shall
notify the Contracting Officer in writing if—
(1) The Contractor changes the amount of
subcontract effort after award such that it exceeds 70 percent of the total
cost of work to be performed under the contract, task order, or delivery order. The notification shall identify the revised
cost of the subcontract effort and shall include verification that the
Contractor will provide added value; or
(2) Any subcontractor changes the amount of
lower-tier subcontractor effort after award such that it exceeds 70 percent of
the total cost of the work to be performed under its subcontract. The notification shall identify the revised
cost of the subcontract effort and shall include verification that the
subcontractor will provide added value as related to the work to be performed
by the lower-tier subcontractor(s).
(d)
Recovery of excessive pass-through
charges. If the Contracting Officer
determines that excessive pass-through charges exist—
(1) For fixed-price contracts, the Government
shall be entitled to a price reduction for the amount of excessive pass-through
charges included in the contract price; and
(2) For other than fixed-price contracts, the
excessive pass-through charges are unallowable in accordance with the
provisions in Subpart 31.2 of the Federal Acquisition Regulation (FAR) and
Subpart 231.2 of the
Defense FAR Supplement.
(e)
Access to records.
(1) The Contracting Officer, or authorized
representative, shall have the right to examine and audit all the Contractor’s
records (as defined at FAR 52.215-2(a)) necessary to determine whether the
Contractor proposed, billed, or claimed excessive pass-through charges.
(2) For those subcontracts to which paragraph (f)
of this clause applies, the Contracting Officer, or authorized representative,
shall have the right to examine and audit all the subcontractor’s records (as
defined at FAR 52.215-2(a)) necessary to determine whether the subcontractor
proposed, billed, or claimed excessive pass-through charges.
(f)
Flowdown. The Contractor shall insert the substance of
this clause, including this paragraph (f), in all subcontracts under this
contract, except for—
(1) Firm-fixed-price subcontracts awarded on the
basis of adequate price competition;
(2) Fixed-price subcontracts with economic price
adjustment, awarded on the basis of adequate price competition;
(3) Firm-fixed-price subcontracts for the
acquisition of a commercial item; or
(4) Fixed-price subcontracts with economic price
adjustment, for the acquisition of a commercial item.
(End of clause)
ALTERNATE
I (MAY 2008). As prescribed in 215.408(4)(ii),
substitute the following paragraph (b) for paragraph (b) of the basic clause:
(b)
General. The Government will not pay excessive
pass-through charges. The Contracting
Officer has determined that there will be no excessive pass-through charges,
provided the Contractor performs the disclosed value-added functions.
252.215-7005 Evaluation Factor for Employing or
Subcontracting with Members of the Selected Reserve.
As prescribed in 215.370-3(a), use the
following provision:
EVALUATION FACTOR FOR EMPLOYING OR SUBCONTRACTING
WITH MEMBERS OF THE SELECTED RESERVE (OCT 2008)
(a) Definition. “Selected Reserve,” as used in this
provision, has the meaning given that term in 10 U.S.C. 10143. Selected Reserve members normally attend
regular drills throughout the year and are the group of Reserves most readily
available to the President.
(b) This solicitation includes an evaluation
factor that considers the offeror’s intended use of employees, or individual
subcontractors, who are members of the Selected Reserve.
(c) If the offeror, in the performance of any
contract resulting from this solicitation, intends to use employees or
individual subcontractors who are members of the Selected Reserve, the
offeror’s proposal shall include documentation to support this intent. Such documentation may include, but is not
limited to—
(1) Existing company documentation, such as
payroll or personnel records, indicating the names of the Selected Reserve
members who are currently employed by the company; or
(2) A statement that one or more positions will
be set aside to be filled by new hires of Selected Reserve members, along with
verifying documentation.
(End of provision)
252.215-7006 Use of Employees or Individual Subcontractors
Who are Members of the Selected Reserve.
As prescribed in 215.370-3(b), use the
following clause:
USE OF EMPLOYEES OR INDIVIDUAL
SUBCONTRACTORS WHO ARE MEMBERS OF THE SELECTED RESERVE (OCT 2008)
(a) Definition. “Selected Reserve,” as used in this clause,
has the meaning given that term in 10 U.S.C. 10143. Selected Reserve members normally attend
regular drills throughout the year and are the group of Reserves most readily
available to the President.
(b) If the Contractor stated in its offer that it
intends to use members of the Selected Reserve in the performance of this
contract—
(1) The Contractor shall use employees, or
individual subcontractors, who are members of the Selected Reserve in the
performance of the contract to the fullest extent consistent with efficient
contract performance; and
(2) The Government has the right to terminate the
contract for default if the Contractor willfully or intentionally fails to use
members of the Selected Reserve, as employees or individual subcontractors, in
the performance of the contract.
(End of clause)