CLC 058 QUESTIONS AND ANSWERS

Cost or Pricing Data All facts that, as of the date of price agreement or an earlier date agreed upon between the parties, prudent buyers and sellers would reasonably expect to affect price negotiations significantly. Cost or pricing data are factual, not judgmental, and are verifiable. While they do not indicate the accuracy of the prospective contractor's judgment about estimated future costs or projections, they do include the data forming the basis for that judgment. Cost or pricing data are more than historical accounting data; they are all the facts that can be reasonably expected to contribute to the soundness of estimates of future costs and to the validity of determinations of costs already incurred. - Answer- Certified Cost or Pricing Data Cost or pricing data that were required to be submitted and have been certified, or are required to be certified. This certification states that, to the best of the person's knowledge and belief, the cost or pricing data are accurate, complete, and current as of a certain date before contract award. Data Other Than Certified Cost or Pricing Data Pricing data, cost data, and judgmental information necessary for the contracting officer to determine a fair and reasonable price or to determine cost realism. Such data may include the identical types of data as certified cost or pricing data, but without the certification. The data may also include, for example, sales data and any information reasonably required to explain the offeror's estimating process. - Answer- Direct Cost Any cost that is identified specifically with a particular final cost objective. Direct costs are not limited to items that are incorporated in the end product as material or labor. Costs identified specifically with a contract are direct costs of that contract. Facilities Capital Cost of Money FCCOM is used to compensate contractors for use of capital without regard to whether the source is owner's equity or borrowed. It is designed to help contractors achieve a return on their investment in facilities capital. It is NOT considered interest on borrowing, which is unallowable according to the FAR. - Answer- Fair and Reasonable Price A price must be considered fair to both parties. A price that a prudent and competent buyer would be willing to pay is a reasonable price. A fair and reasonable price is dependent on the market conditions, general economic conditions, promised quality, competition, alternative approaches, and timeliness of contract performance. Forward Pricing Rate Agreement