FAR 52.215-13—Subcontractor Certified Cost or Pricing Data-Modifications.
Plain-English Summary
FAR 52.215-13, Subcontractor Certified Cost or Pricing Data—Modifications, tells contractors when they must flow down certified cost or pricing data requirements to subcontractors for both new subcontracts and subcontract modifications. It covers the threshold trigger for when the clause applies, the contractor’s duty to obtain certified cost or pricing data from the subcontractor, the content of that data under FAR Table 15-2, the subcontractor’s certification that the data are accurate, complete, and current, and the mandatory flowdown of the clause into covered subcontracts. The clause also addresses how inflation-adjusted thresholds under FAR 1.109 affect applicability over the life of the contract, and Alternate I adds special rules for subcontract modifications based on whether the subcontract was awarded before or after July 1, 2018, including different dollar thresholds and a special flowdown threshold. In practice, this clause is a pricing-control and audit-support mechanism: it helps the prime contractor support its own pricing submissions to the Government by ensuring that lower-tier subcontract pricing is backed by certified data when required. It matters because failure to obtain the required data or certification can expose the contractor to defective pricing risk, pricing disallowance, and contract administration problems.
Key Rules
Applies only above threshold
The clause becomes operative only for covered contract modifications expected to exceed the certified cost or pricing data threshold in FAR 15.403-4(a)(1). It is limited to those modifications and does not apply to unrelated changes below the threshold.
Prime must obtain subcontractor data
Before awarding a covered subcontract, or before pricing a covered subcontract modification, the contractor must require the subcontractor to submit certified cost or pricing data unless an exception in FAR 15.403-1(b) applies. The data may be submitted directly or identified specifically in writing, but it must be sufficient to support the price.
Data must follow Table 15-2
The subcontractor’s submission must comply with FAR 15.408, Table 15-2, including information reasonably needed to explain the estimating process, judgmental factors, mathematical methods, projections from known data, and contingencies. This is broader than just raw numbers; it includes the basis for the estimate.
Subcontractor certification required
The contractor must require the subcontractor to certify, in substantially the FAR 15.406-2 form, that the submitted data were accurate, complete, and current as of the date of agreement on the negotiated subcontract price or modification price. This certification is a key protection against defective pricing.
Flowdown is mandatory
The contractor must insert the substance of the clause, including paragraph (d), into each subcontract that exceeds the applicable threshold on the date of agreement on price or award, whichever is later. This ensures the requirement reaches lower tiers where covered pricing actions occur.
Inflation-adjusted thresholds apply
If FAR 15.403-4(a)(1) is adjusted for inflation under FAR 1.109, the changed threshold applies for the remaining term of the contract unless a later adjustment occurs. Contractors must monitor threshold changes over time rather than relying on the original contract-date amount.
Alternate I uses special modification thresholds
Alternate I replaces the basic modification rules with a different trigger: it applies to subcontract modifications involving aggregate increases and/or decreases in costs plus applicable profits expected to exceed the threshold. It also distinguishes between subcontracts awarded before July 1, 2018, and those awarded on or after that date, with different dollar thresholds and a $2.5 million flowdown threshold.
Responsibilities
Contracting Officer
Include the clause when prescribed by FAR 15.408(e)(1) or Alternate I when prescribed by FAR 15.408(e)(2). Ensure the prime contract uses the correct version and threshold framework applicable to the procurement and any inflation-adjusted threshold changes.
Contractor
Determine whether a subcontract or subcontract modification is covered, require the subcontractor to submit certified cost or pricing data when required, obtain the subcontractor’s certification, and flow the clause down into covered subcontracts. The contractor must also ensure the data are sufficient to support pricing and that any FAR 15.403-1(b) exception is properly applied.
Subcontractor
Provide certified cost or pricing data, including supporting estimating information, when required, and certify that the data are accurate, complete, and current as of the negotiated price date. The subcontractor must support the contractor’s pricing action with reliable, timely information.
Agency
Maintain and apply the correct certified cost or pricing data threshold, including inflation adjustments under FAR 1.109, and use the proper clause prescription and alternate where applicable. The agency also relies on the clause to support pricing integrity and downstream accountability.
Practical Implications
This clause is a major compliance checkpoint for prime contractors managing subcontract pricing on covered actions. Teams need a process to identify when a subcontract or modification crosses the threshold and to collect certified data early enough to support negotiations.
A common pitfall is confusing the threshold for the prime contract with the threshold for the subcontract action, or failing to account for inflation-adjusted thresholds that may change during the contract term. Contractors should verify the current threshold at the time of agreement or award, as applicable.
Another frequent issue is treating a subcontractor’s proposal as sufficient without obtaining the required certification or without enough detail to explain the estimate. The clause requires more than a price quote; it requires support for the estimate and a formal certification when no exception applies.
For Alternate I, contractors must pay close attention to the subcontract award date and whether the action is a modification, because the dollar trigger differs for pre-July 1, 2018 and post-July 1, 2018 subcontracts. Misapplying those dates can lead to under-collection of data or unnecessary burden.
Because the clause must be flowed down, prime contractors should ensure subcontract templates and purchasing systems automatically include the correct version. Missing the flowdown can create downstream enforcement problems and weaken the contractor’s ability to defend its own pricing submissions.
Official Regulatory Text
As prescribed in 15.408 (e)(1) , insert the following clause: Subcontractor Certified Cost or Pricing Data-Modifications (Jun 2020) (a) The requirements of paragraphs (b) and (c) of this clause shall— (1) Become operative only for any modification to this contract involving a pricing adjustment expected to exceed the threshold for submission of certified cost or pricing data in Federal Acquisition Regulation (FAR) 15.403-4 (a)(1) on the date of execution of the modification; and (2) Be limited to such modifications. (b) Before awarding any subcontract expected to exceed the threshold for submission of certified cost or pricing data in FAR 15.403-4 (a)(1), on the date of agreement on price or the date of award, whichever is later; or before pricing any subcontract modification involving a pricing adjustment expected to exceed the threshold for submission of certified cost or pricing data in FAR 15.403-4 (a)(1), the Contractor shall require the subcontractor to submit certified cost or pricing data (actually or by specific identification in writing), in accordance with FAR 15.408, Table 15-2 (to include any information reasonably required to explain the subcontractor's estimating process such as the judgmental factors applied and the mathematical or other methods used in the estimate, including those used in projecting from known data, and the nature and amount of any contingencies included in the price), unless an exception under FAR 15.403-1 (b) applies. If the threshold for submission of certified cost or pricing data specified in FAR 15.403-4 (a)(1) is adjusted for inflation as set forth in FAR 1.109 (a), then pursuant to FAR 1.109 (d) the changed threshold applies throughout the remaining term of the contract, unless there is a subsequent threshold adjustment. (c) The Contractor shall require the subcontractor to certify in substantially the form prescribed in FAR 15.406-2 that, to the best of its knowledge and belief, the data submitted under paragraph (b) of this clause were accurate, complete, and current as of the date of agreement on the negotiated price of the subcontract or subcontract modification. (d) The Contractor shall insert the substance of this clause, including this paragraph (d), in each subcontract that exceeds the threshold for submission of certified cost or pricing data in FAR 15.403-4 (a)(1) on the date of agreement on price or the date of award, whichever is later. (End of clause) Alternate I ( Oct 2025). As prescribed in 15.408 (e)(2), substitute the following paragraphs (a), (b), and (d) for paragraphs (a), (b), and (d) of the basic clause: (a) The requirements of paragraphs (b) and (c) of this clause shall— (1) Become operative only for any modification to this contract involving aggregate increases and/or decreases in costs, plus applicable profits, expected to exceed the threshold for submission of certified cost or pricing data at FAR 15.403-4 (a)(1); and (2) Be limited to such modifications. (b) Unless an exception under FAR 15.403-1 applies, the Contractor shall require the subcontractor to submit certified cost or pricing data (actually or by specific identification in writing), in accordance with FAR 15.408 , Table 15-2 (to include any information reasonably required to explain the subcontractor's estimating process such as the judgmental factors applied and the mathematical or other methods used in the estimate, including those used in projecting from known data, and the nature and amount of any contingencies included in the price)— (1) Before modifying any subcontract that was awarded prior to July 1, 2018, involving a pricing adjustment expected to exceed $950,000; or (2) Before modifying any subcontract that was awarded on or after July 1, 2018, involving a pricing adjustment expected to exceed $2.5 million. (d) The Contractor shall insert the substance of this clause, including this paragraph (d), in each subcontract that exceeds $2.5 million.