On August 30, 2016, the DoD proposed a rule to amend the DFARS to provide exceptions from the certified cost and pricing data requirements and from the records examination requirements for certain awards to small business or nontraditional defense contractors. Specifically, the rule would implement §873 of the FY 2016 NDAA, which provides an exception from certified cost and pricing data requirements for contracts valued at less than $7.5 million awarded to small businesses or nontraditional defense contractors pursuant to technical, merit-based selection procedures (i.e., broad agency announcements) or the Small Business Innovation Research (SBIR) program. A “nontraditional defense contractor” is one that is neither currently performing nor has previously performed any contract or subcontract for DoD that is subject to full cost accounting standard (CAS)-coverage for at least the one-year period preceding the DoD’s solicitation of sources.

However, the rule would provide authority for the head of the contracting activity to determine that submission of cost and pricing data should be required based on past performance of the entity or analysis of other information specific to an award. These disclosure and reporting exceptions would end on October 1, 2020 as part of a pilot program. Comments must be submitted on or before October 31, 2016. (81 Fed. Reg. 59,594, 8/30/16)