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 (i) Received DoD prime contracts or subcontracts totaling
$10 million or more (but less than $50 million) for which certified cost
pricing data were required; and
(ii) Was notified in writing by the Contracting Officer that
paragraphs (d) and (e) of this clause apply.
(d) System requirements.
(1) the Contractor shall disclose its estimating system to the
Administrative Contracting Officer (ACO) in writing. If the Contractor
wishes the government to protect the information as privileged or
confidential, the Contractor must mark the documents with the appropriate
legends before submission.
(2) An estimating system disclosure is adequate when the
Contractor has provided the ACO with documentation which--
Accurately describes those policies, procedures, and
practices that the Contractor currently uses in preparing cost proposals;
and
(ii) Provides sufficient detail for the Government to
reasonably make an informed judgment regarding the adequacy of the
contractor's estimating practices.
(3) The Contractor shall--
(i) comply with its disclosed estimating system; and
(ii) disclose significant changes to the cost estimating
system to the ACO on a timely basis.
Estimating system deficiencies.
(e)
(1) the Contractor shall respond to a written report from the
Government which identifies deficiencies in the Contractor's estimating
system as follows:
If the Contractor agrees with the report findings and
recommendations, the Contractor shall--
(A) Within 30 days, state its agreement in writing; and
(B) Within 60 days, correct the deficiencies or submit
a corrective action plan showing proposed milestones and actions leading to
elimination of the deficiencies.
(ii) If the Contractor disagrees with the report, the
Contractor shall, within 30 days, state its rationale for disagreeing..
(2) The ACO will evaluate the Contractor's response and notif-
the Contractor of the determination concerning remaining deficiencies
and/or the adequacy of any proposed or completed corrective action.
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