# 252.215-7002 Cost Estimating System Requirements. Type: Clause Prescribed in: 215.408(1) ## Prescription and Applicability ### DFARS Prescription, 215.408(1) (1) Use the clause at 252.215-7002, Cost Estimating System requirements, in all solicitations and contracts to be awarded on the basis of certified cost or pricing data. (2) When contracting with the Canadian Commercial Corporation - (i)(A) Use the provision at 252.215-7003, Requirement for Submission of Data Other Than Certified Cost or Pricing Data - Canadian Commercial Corporation - (1) In lieu of 252.215-7010, Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data, in a solicitation, including solicitations using FAR part 12 procedures for the acquisition of commercial products and commercial services, for a sole source acquisition from the Canadian Commercial Corporation that is - (i) Cost-reimbursement, if the contract value is expected to exceed $700,000; or (ii) Fixed-price, if the contract value is expected to exceed $500 million; or (2) In lieu of 252.215-7010, in a solicitation, including solicitations using FAR part 12 procedures for the acquisition of commercial products and commercial services, for a sole source acquisition from the Canadian Commercial Corporation that does not meet the thresholds specified in paragraph (2)(i)(A)(1) of this section, if approval is obtained as required at 225.870-4(c)(2)(ii); and (B) Do not use 252.225-7003 in lieu of 252.215-7010 in competitive acquisitions; and (ii)(A) Use the clause at 252.215-7004, Requirement for Submission of Data Other Than Certified Cost or Pricing Data - Modifications - Canadian Commercial Corporation - (1) In a solicitation, including solicitations using FAR part 12 procedures for the acquisition of commercial products and commercial services, for a sole source acquisition, from the Canadian Commercial Corporation and resultant contract that is - (i) Cost-reimbursement, if the contract value is expected to exceed $700,000; or (ii) Fixed-price, if the contract value is expected to exceed $500 million; (2) In a solicitation, including solicitations using FAR part 12 procedures for the acquisition of commercial products and commercial services, for a sole source acquisition from the Canadian Commercial Corporation and resultant contract that does not meet the thresholds specified in paragraph (2)(ii)(A)(1) of this section, if approval is obtained as required at 225.870-4(c)(2)(ii); or (3)(i) In a solicitation, including solicitations using FAR part 12 procedures for the acquisition of commercial products and commercial services, for a competitive acquisition that includes FAR 52.215-21, Requirement for Data Other Than Certified Cost or Pricing Data - Modifications, or that meets the thresholds specified in paragraph (2)(ii)(A)(1) of this section. (ii) The contracting officer shall then select the appropriate clause to include in the contract (52.215-21 only if award is not to the Canadian Commercial Corporation; or 252.215-7004 if award is to the Canadian Commercial Corporation and necessary approval is obtained in accordance with 225.870-4(c)(2)(ii)); and (B) The contracting officer may specify a higher threshold in paragraph (b) of the clause 252.215-7004. (3) Use the provision at 252.215-7008, Only One Offer, in competitive solicitations that exceed the simplified acquisition threshold, including solicitations using FAR part 12 procedures for the acquisition of commercial products and commercial services. (4) When the solicitation requires the submission of certified cost or pricing data, the contracting officer should include 252.215-7009, Proposal Adequacy Checklist, in the solicitation to facilitate submission of a thorough, accurate, and complete proposal. (5) When reasonably certain that the submission of certified cost or pricing data or data other than certified cost or pricing data will be required or when using the provision at 252.215-7008 - (i) Use the basic or alternate of the provision at 252.215-7010, Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data, in lieu of the provision at FAR 52.215-20, Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data, in solicitations, including solicitations using FAR part 12 procedures for the acquisition of commercial products and commercial services. (A) Use the basic provision when submission of certified cost or pricing data is required to be in the FAR Table 15-2 format, or if it is anticipated, at the time of solicitation, that the submission of certified cost or pricing data may not be required. (B) Use the alternate I provision to specify a format for certified cost or pricing data other than the format required by FAR Table 15-2; (ii) Use the provision at 252.215-7011, Requirements for Submission of Proposals to the Administrative Contracting Officer and Contract Auditor, when using the basic or alternate of the provision at 252.215-7010 and copies of the proposal are to be sent to the ACO and contract auditor; and (iii) Use the provision at 252.215-7012, Requirements for Submission of Proposals via Electronic Media, when using the basic or alternate of the provision at 252.215-7010 and submission via electronic media is required. (6) Use the provision at 252.215-7013, Supplies and Services Provided by Nontraditional Defense Contractors, in all solicitations. (7) Use the clause at 252.215-7014, Exception from Certified Cost or Pricing Data Requirements for Foreign Military Sales Indirect Offsets, in solicitations and contracts that contain the provision at 252.215-7010, Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data, when it is reasonably certain that - (i) The contract is expected to include costs associated with an indirect offset; and (ii) The submission of certified cost or pricing data or data other than certified cost or pricing data will be required. (8) Use the clause at 252.215-7015, Program Should-Cost Review, in all solicitations and contracts for the development or production of a major weapon system, as defined in 234.7001. ## Current Text 252.215-7002 Cost Estimating System Requirements. As prescribed in 215.408(1), use the following clause: Cost Estimating System Requirements (Jan 2025) (a) Definitions. Acceptable estimating system means an estimating system that complies with the system criteria in paragraph (d) of this clause, and provides for a system that— (1) Is maintained, reliable, and consistently applied; (2) Produces verifiable, supportable, documented, and timely 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 budgeting and planning controls, and 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) Budgeting, planning, estimating methods, techniques, accumulation of historical costs, and other analyses used to generate cost estimates. Material weakness means a deficiency or combination of deficiencies in the internal control over information in contractor business systems, such that there is a reasonable possibility that a material misstatement of such information will not be prevented, or detected and corrected, on a timely basis. A reasonable possibility exists when the likelihood of an event occurring is— (1) Probable; or (2) More than remote but less than likely (section 806 of Pub. L. 116-283). (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 certified 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 certified 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 data and 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. (4) The Contractor's estimating system shall provide for the use of appropriate source data, utilize sound estimating techniques and good judgment, maintain a consistent approach, and adhere to established policies and procedures. An acceptable estimating system shall accomplish the following functions: (i) Establish clear responsibility for preparation, review, and approval of cost estimates and budgets. (ii) Provide a written description of the organization and duties of the personnel responsible for preparing, reviewing, and approving cost estimates and budgets. (iii) Ensure that relevant personnel have sufficient training, experience, and guidance to perform estimating and budgeting tasks in accordance with the Contractor's established procedures. (iv) Identify and document the sources of data and the estimating methods and rationale used in developing cost estimates and budgets. (v) Provide for adequate supervision throughout the estimating and budgeting process. (vi) Provide for consistent application of estimating and budgeting techniques. (vii) Provide for detection and timely correction of errors. (viii) Protect against cost duplication and omissions. (ix) Provide for the use of historical experience, including historical vendor pricing data, where appropriate. (x) Require use of appropriate analytical methods. (xi) Integrate data and information available from other management systems. (xii) Require management review, including verification of compliance with the company's estimating and budgeting policies, procedures, and practices. (xiii) Provide for internal review of, and accountability for, the acceptability of the estimating system, including the budgetary data supporting indirect cost estimates and comparisons of projected results to actual results, and an analysis of any differences. (xiv) Provide procedures to update cost estimates and notify the Contracting Officer in a timely manner throughout the negotiation process. (xv) Provide procedures that ensure subcontract prices are reasonable based on a documented review and analysis provided with the prime proposal, when practicable. (xvi) Provide estimating and budgeting practices that consistently generate sound proposals that are compliant with the provisions of the solicitation and are adequate to serve as a basis to reach a fair and reasonable price. (xvii) Have an adequate system description, including policies, procedures, and estimating and budgeting practices, that comply with the Federal Acquisition Regulation and Defense Federal Acquisition Regulation Supplement. (e) Material weaknesses. (1) The Contracting Officer will provide an initial determination to the Contractor, in writing, of any material weaknesses. The initial determination will describe the underlying deficiency in sufficient detail to allow the Contractor to understand the weakness or deficiency. (2) The Contractor shall respond within 30 days to a written initial determination from the Contracting Officer that identifies material weaknesses in the Contractor's estimating system. If the Contractor disagrees with the initial determination, the Contractor shall state, in writing, its rationale for disagreeing. (3) The Contracting Officer will evaluate the Contractor's response and notify the Contractor, in writing, of the Contracting Officer's final determination concerning— (i) Remaining material weaknesses; (ii) The adequacy of any proposed or completed corrective action; and (iii) System disapproval, if the Contracting Officer determines that one or more material weaknesses remain. (f) If the Contractor receives the Contracting Officer's final determination of material weaknesses, the Contractor shall, within 45 days of receipt of the final determination, either correct the material weaknesses or submit an acceptable corrective action plan showing milestones and actions to eliminate the material weaknesses. (g) Withholding payments. If the Contracting Officer makes a final determination to disapprove the Contractor's estimating system, and the contract includes the clause at 252.242-7005, Contractor Business Systems, the Contracting Officer will withhold payments in accordance with that clause. (End of clause) [76 FR 28873, May 18, 2011, as amended at 77 FR 11366, Feb. 24, 2012; 77 FR 11775, Feb. 28, 2012; 77 FR 76941, Dec. 31, 2012; 83 FR 30825, June 29, 2018; 90 FR 5731, Jan. 17, 2025] ## Active Class Deviations Affecting This Clause ### Class Deviation 2026-O0048, DFARS RFO Implementation (Part 15) - Status: Active - Date Issued: 2026-03-16 - Change type: MODIFIED - Action: Modified by RFO class deviation ## Suggested Questions You can ask your AI assistant: - Should I include this provision in my solicitation? - Does this clause apply to commercial acquisitions? - Does this clause apply to R&D contracts under Part 35? - Which alternate should I use for a multiple-award contract? - Are there any active Class Deviations that modify this clause? - What changed in the most recent amendment? --- Source: https://part52.dev Generated: 2026-04-21 17:40 UTC Reference: https://www.ecfr.gov/current/title-48/section-252.215-7002