The federal government spends hundreds of billions of dollars each year on products and services. To help ensure that the government pays fair and reasonable prices, contracting officers generally rely on competition.

When a contract is awarded without adequate price competition, contracting officers may rely on certified cost or pricing data from potential contractors – known as offerors – to determine if the prices are reasonable. When this data is not required, contracting officers use data other than certified cost or pricing data, such as information from previous contracts, market research, or the contractor.

Section 811 of the National Defense Authorization Act for Fiscal Year 2018, among other things, increased the dollar threshold above which offerors must submit certified cost or pricing data from $750,000 to $2 million for certain awards, including subcontracts and modifications. It also required Department of…

Read more…

Share.

Comments are closed.