Overview
FAR 15.400 defines the scope of Subpart 15.4, establishing the foundational policies and procedures for negotiating costs and prices for federal contracts, subcontracts, and modifications.
Key Rules
- Broad Applicability: The subpart covers the pricing of all negotiated prime contracts and subcontracts.
- Modifications Included: These rules apply to contract modifications, regardless of whether the original contract was negotiated or awarded through sealed bidding.
- Procedural Authority: It prescribes the specific negotiation procedures that contracting officers must follow to ensure price reasonableness.
Practical Implications
- Universal Standards: Contractors should expect to adhere to these pricing standards even on sealed-bid contracts if a modification (change order) requires price negotiation.
- Regulatory Trigger: This section serves as the regulatory gateway for more complex requirements found later in the subpart, such as the submission of certified cost or pricing data.