Class Deviation 2024-O0007 - Section 890 Pilot Program to Accelerate Contracting and Pricing Processes

Summary

This deviation rescinds and supersedes Class Deviation 2023-O0004. It implements the Section 890 Pilot Program, allowing contracting officers (Contracting Officers) to determine the extent and format of historical actual cost data offerors must submit instead of complete certified cost or pricing data. Contract actions must exceed $50 million and receive prior approval from the Director, Defense Pricing and Contracting (DPC)/PCF.

Required Contracting Officer Actions

1. Submit an application (Attachment 1) to osd.pentagon.ousd-a-s-mbx.dpc-pcf@mail.mil and obtain Director, DPC/PCF approval before issuing the solicitation.
2. Use deviation provision 252.215-7010 (Deviation 2024-O0007) in lieu of the basic or alternate of Defense Federal Acquisition Regulation Supplement 252.215-7010 in approved solicitations. Detail the required subset of cost or pricing data and format.
3. Use deviation clause 252.215-7997 (Deviation 2024-O0007) in lieu of Federal Acquisition Regulation 52.215-21 for approved contract modifications. Detail the specific cost or pricing data required in the request for proposal for the modification.
4. Use deviation clause 252.215-7998, Pilot Program to Accelerate Contracting and Pricing Processes (Deviation 2024-O0007), in solicitations and resulting contracts or modifications approved for the Pilot Program.
5. Base price reasonableness determinations primarily on offeror or contractor actual cost data from prior acquisitions, supplemented by traditional certified cost or pricing data where needed.
6. Engage in detailed dialogue with the offeror or contractor about the specific certified cost or pricing data required under the pilot before the solicitation is issued.
7. Submit both sets of pilot results (post-award and post-performance) to osd.pentagon.ousd-a-s-mbx.dpc-pcf@mail.mil as they become available.

Affected Provisions and Clauses

252.215-7010, (Clause)

• Prescribed in: 215.408(5)
• Change type: MODIFIED
• Action: Substitute clause 252.215-7010

252.215-7997, (Clause)

• Change type: MODIFIED
• Action: Add clause 252.215-7997

252.215-7998, (Clause)

• Change type: MODIFIED
• Action: Substitute clause 252.215-7998

52.215-12, (Clause)

• Prescribed in: 15.408(d)
• Change type: MODIFIED
• Action: Substitute clause 52.215-12

52.215-13, (Clause)

• Prescribed in: 15.408(e)
• Change type: MODIFIED
• Action: Substitute clause 52.215-13

52.215-21, (Clause)

• Prescribed in: 15.408(m)
• Change type: MODIFIED
• Action: Substitute clause 52.215-21

Notes

Supersession: This deviation rescinds and supersedes Class Deviation 2023-O0004, issued January 17, 2023.

Eligibility threshold: Contract actions must have an anticipated value exceeding $50 million to qualify for the Pilot Program.

Best-suited actions: Recurring contract actions with reliable actual cost data and companies with approved business systems are best suited for the Pilot Program. No preference exists for contract type.

Fixed-price-incentive note: Use of a fixed-price-incentive contract type is not required. It can reduce cost risk and provide measurable results at acquisition conclusion.

Reporting requirements: Two measurements are required. The first occurs within three months after award. The second occurs within three months after completion of performance.

Expiration: This deviation remains in effect until January 2, 2028, or until otherwise rescinded.

Subcontract flowdown: COs may flow down the Section 890 pilot authority to first-tier or lower-tier subcontracts subject to the Truthful Cost or Pricing Data (Truth in Negotiations) Act. The CO must establish the extent and detail of historical actual cost data required from each covered subcontractor.

Point of contact: Contact Ms. Gina Bova at 937-200-4020 or regina.m.bova.civ@mail.mil for questions.

Suggested Questions