(c) Audit assistance for prime contracts and subcontracts.
(90) For price proposals involving significant subcontracted amounts, requests for field pricing reviews should solicit decrement factor information (see 15.401) relevant to the award. Where extreme urgency necessitates award prior to completion of a subcontract review, negotiation of an appropriate decrement would obviate the need for a reopener clause (see DFARS 215.407-5-70(g)(2)(vi) or an undefinitized contractual instrument.
(d) Deficient proposals. When the offeror refuses to submit or certify cost or pricing data the reasons why the data are needed and why they were not provided should be discussed with the offeror and confirmed in writing prior to elevation to higher Government and offeror management levels.
(90) In the event the efforts of the contracting officer and higher management are unsuccessful in obtaining the data, the matter shall be elevated, after review by the local pricing and contract review elements, to the Supply Chain Head of the Contracting Activity (HCA) along with the information in (1) through (14) below:
(1) What steps were taken to:
(i) Secure essential cost or price data.
(ii) Secure the contractor's cooperation, and
(iii) Assure the contractor that the information furnished by the contractor would be adequately safeguarded.
(2) An explanation as to why an exemption cannot be based on current or recent prices for a similar item or any of the other bases for exemption (FAR 15.403-1(b)(1) through (b)(3) and (b)(5)) to the requirement for cost or pricing data.
(3) The offeror's written refusal to provide the cost or pricing data and reason for the refusal (if unavailable, documentation of a telephone contact with a senior executive explaining why the contractor refuses to provide a written refusal).
(4) An explanation from the senior company official if possible, of whether, and under what circumstances, the offeror’s business segment furnished cost or pricing data for prior contracts with this or another Government contracting office.
(5) The identification and results of attempts (including, where applicable, attempts made by the auditor, the ACO, and other contracting offices) to secure cost or pricing data concerning the current and prior contract actions, including date(s), contract award(s), and the names, organizational level, job titles and phone numbers of participants in the negotiations.
(6) A complete buy history for the five item(s) expected to represent the highest Government expenditures under the proposed contract action.
(7) A copy of the cost or price analyses performed, which shall include a comparison with prior prices, and results of the price reasonableness determination.
(9) The current stock position, projected requirements, schedule of due-in’s, schedule of unfilled orders, and projected stock recovery date.
(10) Non-technical description of the item, including dimensions, and the next higher
Assembly and the end item/weapon system it’s included in.
(11) Photograph (e.g., from a tech manual) or drawing of the item.
(12) The alternatives to proceeding with the acquisition.
(13) The suggested course of action considering the alternatives in (12) above.
(14) Realistic plan for avoiding, as applicable, another proposal deficiency or TINA refusal in the future.
● (91) Negotiations with top management of the firm conducted by the CCO, Supply Chain HCA and, as appropriate, by the Supply Chain Commander/Director. When a contractor/subcontractor has refused to provide the required data for the first time, or when the Commander/Director or Supply Chain HCA has not personally negotiated with the contractor/subcontractor recently to obtain such data, the Commander/Director or Supply Chain HCA should attempt to secure the data. The Commander/Director or Supply Chain HCA shall execute a detailed memorandum setting forth the rationale for any decision not to personally negotiate for the data. This memorandum shall be included in the contract file, along with the above information.
(92) Following an unsuccessful negotiation where the extended dollar value of the award or other contract action (15.403-4) exceeds the TINA threshold (current value or value in the contract as applicable), the Commander/Director, Supply Chain HCA, or Chief of the Contracting Office for those contracting activities without a Supply Chain HCA, shall promptly notify HQ DLA, ATTN: J-7, and forward recommendations to resolve the impasse, with supporting documentation ((1)-(14) above), to HQ DLA, ATTN: J-73.
(93) See 15.403-(c)(4)(A)(90)(x) for this further elevation to continue efforts to secure TINA data and/or certification covering the offered price including, where required, subcontractor cost or pricing data and/or certification, or other information to determine price reasonableness of a contract action exceeding the TINA threshold, or a clear refusal to provide and/or certify the total price offered with rationale explaining the refusal.
