The Department of Defense (DoD) has proposed amendments to the Defense Federal Acquisition Regulation Supplement (DFARS) aimed at updating contractor requirements in light of recent National Defense Authorization Acts (NDAA). These updates reflect legislative mandates from the NDAAs of Fiscal Years (FY) 2018, 2021, and 2022, focusing on changes to cost or pricing data requirements. Specifically, they address the Truthful Cost or Pricing Data statute (formerly known as the Truth in Negotiations Act or TINA) and its application to contract modifications, subcontracts, and subcontracts’ modifications.

One of the key changes introduced by this proposed rule is the establishment of a uniform threshold of $2 million for contractors to submit certified cost or pricing data for contract modifications. Previously, a discrepancy existed where contracts entered into before June 30, 2018, were still subject to the lower threshold of $750,000 for modifications. The new rule aims to eliminate this inconsistency, applying the $2 million threshold uniformly to both new and older contracts. Additionally, this rule allows for the submission of data other than certified cost or pricing data when such certification is not required, streamlining the process for contractors and the government alike.

For contractors engaged in research and development funded by the DoD, the proposed rule introduces requirements for submitting a Data Management Plan (DMP) at the outset of a research project. This plan, which is subject to the program manager's approval, outlines how data will be collected, managed, and shared. The objective is to ensure transparency and scientific integrity in research projects funded by the DoD. Alongside this, the rule also mandates that contractors submit final peer-reviewed manuscripts to the Defense Technical Information Center repositories, ensuring that scholarly work produced during DoD-funded projects is accessible for future research and development efforts.

One significant implication of these changes is the simplification of administrative processes for contractors. By increasing the TINA threshold for contract modifications, contractors handling large-scale projects are relieved of the burden of submitting certified cost or pricing data for smaller modifications, thus reducing compliance costs. Moreover, the ability to submit other forms of pricing data when certified data is not required allows for more flexibility, potentially expediting contract negotiations and awards.

Another critical aspect of the proposed rule is its focus on fostering transparency and accountability, particularly in DoD-funded research projects. The introduction of DMPs and the requirement to submit peer-reviewed manuscripts aligns with broader federal efforts to promote open science and the sharing of research data. This will likely benefit the broader scientific community by ensuring that data from DoD-funded projects are preserved and accessible.

However, these changes may also present challenges for contractors, particularly small businesses. The increased administrative requirements for data management in research projects and the need for meticulous documentation to justify exceptions to certified cost or pricing data could create additional burdens for smaller entities with limited resources. Contractors must adapt to these changes by investing in the necessary systems and processes to comply with the new requirements.

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