(b) When the price of a replenishment part exceeds the 25% limitation over the most recent 12-month period, the contracting officer will ensure that the pricing documentation, e.g., the Price Negotiation Memorandum (PNM), demonstrates that
(1) The contracting officer has evaluated the price of the part and concluded that the price increase is fair and reasonable; or
(2) The national security interests of the United States require purchase of the part despite the price increase.
(c) The contracting officer's signature on the PNM as well as the documentation in the PNM serves as the certification to the head of the contracting activity (HCA) that the price has been evaluated based on the criteria above. The PNM will also include the following statement and signature block for the HCA on the signature page of the PNM:
"The HCA signature below confirms the HCA has been notified and has reviewed the rationale for the price increase in accordance with DFARS 217.7505."
