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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: October 1, 2001

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Cost or Pricing Data Threshold

SOURCE: Federal Register, October 1, 2001, Vol. 66, No. 190, page 49862

AGENCIES: Department of Defense (DOD)

ACTION: Final Rule

SYNOPSIS: DOD is amending DFARS 215.404-4, Profit, and DFARS 253.215-70, DD Form 1547, Record of Weighted Guidelines Application, to reflect the increase in the cost or pricing data threshold from $500,000 to $550,000.

EDITOR'S NOTE: For more on the Federal Acquisition Regulation (FAR) implementation of the increased cost or pricing data threshold, see the October 11, 2000, FEDERAL CONTRACTS DISPATCH "Federal Acquisition Circular (FAC) 97-20, Veterans Entrepreneurship and Truth in Negotiations Act Threshold."

EFFECTIVE DATE: October 1, 2001.

FOR FURTHER INFORMATION CONTACT: Sandra Haberlin, Defense Acquisition Regulations Council, OUSD(AT&L)DP(DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062; 703-602-0289; fax: 703-602-0350. Cite DFARS case 2000-D036.

SUPPLEMENTAL INFORMATION: 10 U.S.C. 2306a(a)(7) and 41 U.S.C. 254b(a)(7) require review of the cost or pricing data threshold every five years, starting October 1, 1995, and that the threshold be rounded to the nearest multiple of $50,000 to reflect inflation or deflation during the previous five years. Therefore, the threshold was due to be adjusted on October 1, 2000, and on October 11, 2000, FAC 97-20 increased the cost or pricing data threshold, which is specified in FAR 15.403-4, Requiring Cost or Pricing Data (10 U.S.C. 2306a and 41 U.S.C. 254b), from $500,000 to $550,000.

This final rule revises DFARS 215.404-4 and 253.215-70 to remove references to the $500,000 threshold and replace them with "cost or pricing data threshold." The reason "cost or pricing data threshold" is used rather than "$550,000" is to minimize the need for changes to the DFARS when the cost or pricing data threshold is adjusted in the future.

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2001 by Panoptic Enterprises. All Rights Reserved.

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