The Resource Contract Pricing: Threshold for Analysis of Subcontract Proposals Not Clear

Contract Pricing: Threshold for Analysis of Subcontract Proposals Not Clear

Label
Contract Pricing: Threshold for Analysis of Subcontract Proposals Not Clear
Title
Contract Pricing: Threshold for Analysis of Subcontract Proposals Not Clear
Contributor
Subject
Language
eng
Summary
Within the DOD procurement community, officials identify two different dollar thresholds as being applicable to the FAR requirement that prime contractors analyze cost or pricing data from prospective subcontractors before an agreement is reached on the prime contract price. Some procurement officials interpret the FAR as requiring such analysis if the prospective subcontract is expected to exceed the threshold for submitting data under the Truth in Negotiations Act (P.L. 87-653), as amended, currently $500,000. Other officials cite another FAR section on prospective subcontracts to justify a higher threshold of $1 million or both more than $500,000 and then 10 percent of the prime contract value. These different interpretations could result in the government not receiving analyses needed to establish fair and reasonable contract prices or in contractors being burdened with analyses of subcontract proposals not required by the government. In the short term, clarifying the FAR section on analyses could eliminate confusion as to the threshold at which prime contractors are required to analyze prospective subcontractor cost or pricing data. For the long term, determining the effects of potential thresholds for analysis of such data could be done in conjunction with the congressionally mandated DOD Inspector General review of the effect of the threshold change in the Truth in Negotiations Act
Cataloging source
DTICE
Credits note
Approved for public release ; distribution is unlimited
Index
no index present
Literary form
non fiction
http://library.link/vocab/relatedWorkOrContributorName
GENERAL ACCOUNTING OFFICE WASHINGTON DC NATIONAL SECURITY AND INTERNATIONAL AFFAIRS DIV
http://library.link/vocab/subjectName
  • United States
  • United States
  • Defense contracts
  • Subcontracting
  • Requirements
  • Logistics, military facilities and supplies
  • Contracts
  • Communities
  • Cost analysis
  • Threshold effects
  • Costs
  • Procurement
  • Armed Forces
  • Defense contracts
  • United States
Target audience
adult
Label
Contract Pricing: Threshold for Analysis of Subcontract Proposals Not Clear
Instantiates
Publication
Carrier category
online resource
Carrier category code
  • cr
Carrier MARC source
rdacarrier
Content category
text
Content type code
  • txt
Content type MARC source
rdacontent
Dimensions
23 x 29 cm
Extent
20 pages
Form of item
online
Governing access note
APPROVED FOR PUBLIC RELEASE
Media category
computer
Media MARC source
rdamedia
Media type code
  • c
Note
Hein Online
System control number
  • (OCoLC)227778726
  • (OCoLC)ocn227778726
Label
Contract Pricing: Threshold for Analysis of Subcontract Proposals Not Clear
Publication
Carrier category
online resource
Carrier category code
  • cr
Carrier MARC source
rdacarrier
Content category
text
Content type code
  • txt
Content type MARC source
rdacontent
Dimensions
23 x 29 cm
Extent
20 pages
Form of item
online
Governing access note
APPROVED FOR PUBLIC RELEASE
Media category
computer
Media MARC source
rdamedia
Media type code
  • c
Note
Hein Online
System control number
  • (OCoLC)227778726
  • (OCoLC)ocn227778726

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