The Department of Defense published a long awaited proposed rule on August 3, 2015, amending the DFARS to provide guidance for evaluating the reasonableness of prices using data other than certified cost or pricing data.  The proposed rule falls short of its goal, instead increasing confusion in the determination of price reasonableness for commercial goods that have been “offered for sale” but not sold.  It also adopts open-ended data provisions that arguably permit the agency to request almost unlimited information to substantiate the reasonableness of prices.  This DOD proposed rule is but the latest example of the government considering increasing the burdens and compliance obligations on its commercial contractors while expecting the results to be lower prices.  Comments on the proposed rule should be submitted by October 2, 2015.

If you are interested in more information about this proposed rule and its potential impact, we recently published an article on the subject in Law360.  To view the full Law360 article “A Closer Look At DOD’s Proposed Price Reasonableness Rule” (8/20/2015) please click here.

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Photo of Kevin Barnett Kevin Barnett

Kevin Barnett represents clients in all aspects of government contracts law. He has represented contractors in litigating claims against the United States before the Court of Federal Claims, the boards of contract appeals, and against a foreign government in an international arbitration. He…

Kevin Barnett represents clients in all aspects of government contracts law. He has represented contractors in litigating claims against the United States before the Court of Federal Claims, the boards of contract appeals, and against a foreign government in an international arbitration. He has counseled clients on GSA schedule contract compliance, Buy American Act and Trade Agreement Act issues, and the attorney-client privilege. Mr. Barnett also routinely assists clients of all sizes in navigating the Freedom of Information Act (FOIA) process from drafting and negotiating requests through litigating in federal court.