Reference no: EM131811224

Brown Products - Cost or Pricing Data

Brown Products produces automobile anti-collision safety equipment. Preliminary Government tests have demonstrated that four of five accidents at speeds of 50 miles per hour or more can be prevented by suing a system built by Brown to rigorous Government requirements. You just completed a $3,600,000 acquisition of 500 systems for full scale testing. Now another Government organization has requested 250 additional test systems.

During the acquisition of the 500 systems, your office required Brown to submit extensive detailed cost or pricing data. The technical and audit analyses took months to complete. It seems like overkill to go through all that again only one month after contract award. That is especially true since the requiring activity needs the system for testing as soon as possible.

This system has not hit the commercial market yet. It is still too expensive and there are questions about system maintenance and repair that have not been resolved. When the system is approved, the Government will release full specifications to the automobile industry. Experts expect that full commercial use will save 10,000 lives a year and reduce automobile property damage by millions of dollars.

To expedite the acquisition process, Brown has requested a waiver of solicitation requirements for cost or pricing data.

1. Based on the facts presented above, could you waive the requirement for cost or pricing data?

2. Based on the previous acquisition, you expect HiTech Systems will receive a $90,000 subcontract for component production. If you do waive the requirement for Brown to submit cost or pricing data, would HiTech be required to submit cost or pricing data?

3. If you waive the requirement, what audit rights will be retained by the Government under the new contract?