15.402-90  Pricing policy - exclusive dealers

(a)  DLA contracting officers are required to obtain price and cost-type information, without requiring certification (see FAR 15.402(a)(2)(i) and (ii)), when TINA does not apply and there is no other basis for determining that the proposed prices are fair and reasonable (e.g. through market research and price analysis techniques). In these situations when TINA does not apply, the distributor/dealer must provide its cost-type data when required by the contracting officer. Additional guidance is contained in DFARS Procedures, Guidance, and Information (PGI) Subpart 215.4. Moreover, if the contracting officer is relying on previous prices paid by the Government, the contracting officer must establish that a thorough price or cost analysis was performed on the previous buys (DFARS PGI 215.403-3(4)).

(b)  It is critical that all levels of management support the contracting officer in acquiring cost-type data necessary for determining fair and reasonable prices. If the exclusive distributor/dealer's representative does not provide the information requested by the contracting officer, the situation should be elevated to higher levels of management within both the government and contractor organization. When TINA does not apply, any distributor/dealer who does not comply with the requirement to submit cost-type information for a contract or subcontract is ineligible for award unless the Head of Contracting Activity (HCA) determines that it is in the best interest of the Government to make the award to that offeror in accordance with FAR 15.403-3(a)(4). The contracting officer must ensure the following is clearly documented in support of the request to the HCA:

(1)  The effort taken to obtain the data;

(2)  The need for the item or service; and,

(3)  Increased cost or significant harm to the Government if award is not made.

(c)  In the event of an exigent situation when the HCA has approved award without obtaining requested cost data, the contracting activity must notify the Procurement Integrity and Pricing Division (J-73), and J-7 will then notify Defense Procurement, Acquisition Policy, and Strategic Sourcing (DPAPSS) (see mandatory PGI 15.402-90).