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Section 5315.407-1: Defective cost or pricing data

(d)(90) AFMC contracting offices shall ensure timely resolution of defective pricing audits. If the Air Force Negotiation Objective or negotiated amount deviates from the DCAA Recommended Price Adjustment, the Contracting Officer shall obtain approval of the variance from at least one level above the Contracting Officer. Contracting Officers shall ensure that defective pricing adjustments (excluding interest) are reflected in automated procurement history records for repetitive spares. No negotiated settlement agreement with a contractor shall waive the rights of the Government for future defective pricing claims or otherwise restrict the Government’s rights to conduct audits under the same or other contracts. The collection of interest cannot be waived or offset. Refer to the Defective Pricing Guide for additional guidance




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