A DFARS proposed Pilot Program on streamlining awards for innovative technology projects is out for comment. The proposed rule change for the Pilot Program which expires October 1, 2020 will exempt small business and “Nontraditional defense contractors” from providing certified cost or pricing data for SBIR contract awards that are below $7.5 million and exempt those same contractors from audit of records in support of these contract. However, there is one exception to this proposed rule change which is:
“Notwithstanding the exception … the head of the contracting activity may determine that submission of certified cost or pricing data should be required based on past performance of the specific small business or nontraditional defense contractor, or based on analysis of other information specific to the award.”
This exception to the proposed rule give the agency and its CO a hole wide enough to drive a MAC truck through. Another interesting point on this exception is that the definition of a “nontraditional defense contractor” means a contractor that essentially has no past performance history because that contractor has not performed on a DoD contract for a least a year or more. So for the CO to require certified cost or pricing data or to audit the supporting records of this type of contractor, the CO must based their decision on analysis of other information specific to the award. The problem with this is that what constitutes “analysis of other information specific to the award” is not defined nor is it clear whether the CO would be required to disclosed the basis of that decision.
If you want to provide comments or questions on this proposed rule change, those comments or questions must be submitted by October 31, 2016. Attached is the Federal Register for this proposal which on page 2 provides the necessary information for submitting comments.
DOD proposed amendment to SBIR – exception to CorP and audits