My company is bidding on a larger federal contract for IT services, NAICS 541519, and the contracting officer mentioned 'certified cost or pricing data' in an email. This is an RFP for a full and open competition. We are usually under the simplified acquisition threshold, so this is new for us. I saw FAR 15.403-4 and it talks about when it is required. What does it entail, and when is it typically required for federal proposals?
Certified cost or pricing data is generally required for federal proposals when the contract action is expected to exceed the Truth in Negotiations Act (TINA) threshold, which is currently $2 million. FAR 15.403-4 specifies when this data is needed. This threshold applies to negotiated procurements, contract modifications, and subcontracts. If your IT services RFP is above this amount, the contracting officer will require you to submit detailed cost or pricing data to help determine a fair and reasonable price. This data includes information like direct labor rates, material costs, overhead, and general and administrative expenses. The purpose is to allow the government to evaluate the reasonableness and accuracy of your proposed costs.