PGI 215.403-72: Certified current cost or pricing data under the Program to Accelerate Contracting and Pricing Processes.

(b) Program to accelerate contracting and pricing processes.

(1) All requests for participation in the Program to Accelerate Contracting and Pricing Processes under 10 U.S.C. 3709, informally known as “Truth in Negotiations Act (TINA) Lite,” must contain the following information:

(i) Description of requirement.

(ii) Name of program (if applicable).

(iii) Solicitation or contract number (if known).

(iv) Offeror/contractor contact information.

(v) Extent of commonality between current and prior acquisitions.

(vi) Planned approach for flowing down the TINA Lite program to subcontracts.

(2) Ensure the offeror or contractor and subcontractors, as applicable, understand the cost or pricing data and certification requirements necessary to support a price reasonableness determination and can trace that data to the proposal, considering the following cost elements, which are detailed in the TINA Lite Policy and Implementation Guide, available on the DPCAP PCF website “pricing topics” page at https://www.acq.osd.mil/asda/dpc/pcf/pricing-topics.html#Cost:

(i) Actual costs for relevant prior acquisitions. Identify the specific actual costs desired (e.g., “a summary of actual costs incurred for the prior three production lots, segregated by recurring and non-recurring effort, by cost element”). If prior acquisitions are not physically complete as of the day the solicitation is issued, request actual costs through a specific date plus an estimate to complete (ETC). A data refresh should be provided prior to commencement of negotiations and prior to conclusion of negotiations.

(ii) Non-recurring effort. Ensure prior acquisitions exclude non-recurring costs so they are not projected into the current requirements. Also, determine the data required to support pricing non-recurring elements in the current acquisition, which may require traditional certified cost or pricing data.

(iii) Fixed vs. variable costs. Where there are quantity differences between the current requirement and prior acquisitions, account for the impact of fixed and variable costs. Require the contractor to identify fixed and variable cost components in the historical actuals at a level of detail sufficient to support appropriate application of that data to the current requirement.

(iv) Changed requirements. If significant changes exist between prior acquisitions and the current requirement, develop an approach to segregate costs associated with tasks not required in the current effort. New requirements must be supported by adequate certified cost or pricing data.

(v) Labor. Require data to support historical labor actuals, including hours and unburdened dollars by labor category by task. If labor hours in prior acquisitions were proposed using estimating factors, compare those proposed factors against actual outcomes as a basis for evaluating similar hours in the current proposal. In addition to actual costs, the contracting officer should consider requiring the prime contractor and its subcontractors to disclose suppliers’ quotes, offers, and agreed-to vendor pricing for the current requirement as data becomes available.

(vi) Subcontracts and interorganizational transfers subject to TINA. This authority may be flowed down to first-tier or lower-tier subcontracts subject to TINA, at the discretion of the contracting officer. The contracting officer must ensure the extent, structure, and level of detail of actual cost data which subcontractors will submit in lieu of traditional certified cost or pricing data is presented in a manner that will support efficient and effective evaluation of the subcontract proposal for the current requirement. Specify that subcontracts to which this authority is not flowed down remain subject to submission of certified cost or pricing data required by FAR 15.403-3 and the thresholds at DFARS 215.403-3(a).

(vii) Base Material and subcontracts below the TINA threshold or meeting a TINA exception. The Government is prohibited from obtaining certified cost or pricing data for material or subcontract costs below the threshold in DFARS 215.403-3(a). Consider whether data in addition to the prime contractor’s purchase order history is needed to support proposed pricing for these items. If the prime contractor has made a commerciality assertion with regard to a supplier or subcontractor, the contracting officer will need to consider whether data other than certified cost or pricing data will be required, and if so, the type and extent of data.

(viii) Interorganizational transfers. For interorganizational transfers subject to TINA, determine the appropriate level of detail for supporting cost or pricing data. Considerations may include the dollar value of the interorganizational transfer and the complexity of the effort.

(xiv) Other direct costs (ODC). The contracting officer should consider whether the historical ODC costs provide an appropriate basis for projection of ODC cost for the current effort. The concepts of recurring vs non-recurring and fixed vs variable costs, discussed above, must also be considered.

(xv) Rates and factors. It may be useful to compare proposed rates and factors for prior acquisitions to actual outcomes, especially with respect to estimating factors which are not the subject of Forward Pricing Rate Agreements or Forward Pricing Recommended Rates. Use prospective DCMA rate positions, when available, in the pricing of the current requirement.

(xvi) Format and content. While the proposal format and content may vary according to the circumstances of each contract action covered by this authority, a proposal evaluation plan is critical to ensure that the optimal subset of data is obtained to permit efficient and effective proposal evaluation, negotiation, and establishment of a fair and reasonable price. The contractor should submit a cost element summary by Contract Line Item Number, contract period (base, options), and total contract value in addition to a priced bill of materials and a time-phased breakdown of labor hours and rates by category.

(3) Notify DPCAP at osd.pentagon.ousd-a-s.mbx.dpc-pcf@mail.mil within 10 days of contract award. Notification must include the following:

(i) Contracting activity including name of contracting officer and approval authority.

(ii) Program name.

(iii) Contract action value.

(iv) Contractor name and location.

(c) HCAs should monitor time and dollars saved by using this authority.