1. (1)(a) The Procurement Officer may, by policy, establish the cost principles to be included in a cost-reimbursement Contract to determine incurred costs to calculate a reimbursement.

   1. (b) The cost principles established by rule under Subsection (1)(a) may be modified, by Contract, if the Procurement Official approves the modification.

2. (2) Except as provided in Subsection (5), a person who seeks to be, or is, a party in a cost-based Contract with the CRAU shall:

   1. (a) submit cost or pricing data relating to determining the cost or pricing amount; and
   2. (b) certify that, to the best of the Contractor's knowledge and belief, the cost or pricing data submitted is accurate and complete as of the date specified by the CRAU.

3. (3) The Procurement Official shall ensure that the date specified under Subsection (2)(b) is before:

   1. (a) the pricing of any Contract awarded by a Standard Procurement Process or pursuant to a Sole Source Procurement, if the total Contract price is expected to exceed $100,000; or
   2. (b) the pricing of any change order that is expected to exceed 20% of the original Contract amount.
4. (4) A Contract or change order that requires a certification described in Subsection (2) shall include a provision that the price to the CRAU, including profit or fee, shall be adjusted to exclude any significant sums by which the CRAU finds that the price was increased because the Contractor provided cost or pricing data that was inaccurate, incomplete, or not current as of the date specified by the Procurement Official.

5. (5) The CRAU is not required to comply with Subsection (2) if:

   1. (a) the Contract price is based on adequate price competition;
   2. (b) the Contract price is based on established catalogue prices or market prices;
   3. (c) the Contract price is set by law or rule; or

   4. (d) the Procurement states, in writing:

      1. (i) that, in accordance with a policy established by the Procurement Officer, the requirements of Subsection (2) may be waived; and
      2. (ii) the reasons for the waiver.

KEY: contracts, change orders

Date of Last Change: December 28, 2021

Authorizing, and Implemented or Interpreted Law: 63M-14-206