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Section 5415.404-3: Subcontract pricing considerations.

(a) The contracting officer’s determination of price reasonableness for a proposed award shall take into consideration the estimated, or actual prices, to be paid by the proposed awardee to its subcontractors (see FAR 15.404-3(a)). The contracting officer shall follow the guidance at DFARS PGI 215.404-3 and PGI 15.402-92 to determine whether a subcontractor’s proposed prices are fair and reasonable.

    (c) The contracting officer shall consider requiring submission of subcontractor cost or pricing data (unless an exception to TINA applies), if the contracting officer determines the subcontractor’s price is unreasonable or does not meet at least one of the criteria in FAR 15.403-1(b)).




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