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(Revised August 10, 2010)

 



 252.215-7000 Pricing Adjustments.
 252.215-7001 Reserved.
 252.215-7002 Cost Estimating System Requirements.
 252.215-7003 Reserved.
 252.215-7004 Reserved.
 252.215-7005 Evaluation Factor for Employing or Subcontracting with Members of the Selected Reserve.
 252.215-7006 Use of Employees or Individual Subcontractors Who are Members of the Selected Reserve.

 

252.215-7000  Pricing Adjustments.

As prescribed in 215.408(1), use the following clause:

 

PRICING ADJUSTMENTS (DEC 1991)

 

The term “pricing adjustment,” as used in paragraph (a) of the clauses entitled “Price Reduction for Defective Cost or Pricing Data--Modifications,” “Subcontractor Cost or Pricing Data,” and “Subcontractor Cost or Pricing Data--Modifications,” means the aggregate increases and/or decreases in cost plus applicable profits.

 

(End of clause)

 

252.215-7001  Reserved.

 

252.215-7002  Cost Estimating System Requirements.

As prescribed in 215.408(2), use the following clause:

 

COST ESTIMATING SYSTEM REQUIREMENTS (DEC 2006)

 

      (a)  Definitions

 

      “Acceptable estimating system” means an estimating system that—

 

              (1)  Is maintained, reliable, and consistently applied;

 

              (2)  Produces verifiable, supportable, and documented 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 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)  Estimating methods, techniques, accumulation of historical costs, and other analyses used to generate cost estimates.

 

      (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 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 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 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.

 

      (e)  Estimating system deficiencies.

 

              (1)  The Contractor shall respond to a written report from the Government that identifies deficiencies in the Contractor's estimating system as follows:

 

                    (i)  If the Contractor agrees with the report findings and recommendations, the Contractor shall—

 

                            (A)  Within 30 days, state its agreement in writing; and

 

                            (B)  Within 60 days, correct the deficiencies or submit a corrective action plan showing proposed milestones and actions leading to elimination of the deficiencies.

 

                    (ii)  If the Contractor disagrees with the report, the Contractor shall, within 30 days, state its rationale for disagreeing.

 

              (2)  The ACO will evaluate the Contractor's response and notify the Contractor of the determination concerning remaining deficiencies and/or the adequacy of any proposed or completed corrective action.

 

(End of clause)

 

252.215-7003  Reserved.

 

252.215-7004  Reserved.

 

252.215-7005  Evaluation Factor for Employing or Subcontracting with Members of the Selected Reserve.

As prescribed in 215.370-3(a), use the following provision:

 

EVALUATION FACTOR FOR EMPLOYING OR SUBCONTRACTING WITH MEMBERS OF THE SELECTED RESERVE (OCT 2008)

 

      (a)  Definition.  “Selected Reserve,” as used in this provision, has the meaning given that term in 10 U.S.C. 10143.  Selected Reserve members normally attend regular drills throughout the year and are the group of Reserves most readily available to the President.

 

      (b)  This solicitation includes an evaluation factor that considers the offeror’s intended use of employees, or individual subcontractors, who are members of the Selected Reserve. 

 

      (c)  If the offeror, in the performance of any contract resulting from this solicitation, intends to use employees or individual subcontractors who are members of the Selected Reserve, the offeror’s proposal shall include documentation to support this intent.  Such documentation may include, but is not limited to—

 

              (1)  Existing company documentation, such as payroll or personnel records, indicating the names of the Selected Reserve members who are currently employed by the company; or

 

              (2)  A statement that one or more positions will be set aside to be filled by new hires of Selected Reserve members, along with verifying documentation.

 

(End of provision)

 

252.215-7006  Use of Employees or Individual Subcontractors Who are Members of the Selected Reserve.

As prescribed in 215.370-3(b), use the following clause:

 

USE OF EMPLOYEES OR INDIVIDUAL SUBCONTRACTORS WHO ARE MEMBERS OF THE SELECTED RESERVE (OCT 2008)

 

      (a)  Definition.  “Selected Reserve,” as used in this clause, has the meaning given that term in 10 U.S.C. 10143.  Selected Reserve members normally attend regular drills throughout the year and are the group of Reserves most readily available to the President.

 

      (b)  If the Contractor stated in its offer that it intends to use members of the Selected Reserve in the performance of this contract—

 

              (1)  The Contractor shall use employees, or individual subcontractors, who are members of the Selected Reserve in the performance of the contract to the fullest extent consistent with efficient contract performance; and

 

              (2)  The Government has the right to terminate the contract for default if the Contractor willfully or intentionally fails to use members of the Selected Reserve, as employees or individual subcontractors, in the performance of the contract.

 

(End of clause)