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FAR and DFARS › DFARS Part 215: Contracting by Negotiation › Subpart 215.4

DFARS 215.407-1 Defective certified cost or pricing data.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section tells contracting officers how to handle a contractor's voluntary disclosure of defective pricing after contract award. The officer must discuss the disclosure with DCAA to decide what audit involvement is appropriate, and the contractor's disclosure does not waive the Government's right to recover overpayments or pursue defective pricing claims.

Applies to: Contracting officers handling contractor voluntary disclosures of defective pricing after award

What it requires

  • Discuss the voluntary disclosure with DCAA
  • At a minimum, discuss with DCAA the completeness of the disclosure, the accuracy of the cost impact calculation, and potential impact on existing contracts, orders, or other proposals

Key terms: defective certified cost or pricing data · voluntary disclosure · DCAA · limited-scope audit · voluntary refund

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(c)(i) When a contractor voluntarily discloses defective pricing after contract award, the contracting officer shall discuss the disclosure with the Defense Contract Audit Agency (DCAA). This discussion will assist in the contracting officer determining the involvement of DCAA, which could be a limited-scope audit (e.g., limited to the affected cost elements of the defective pricing disclosure), a full-scope audit, or technical assistance as appropriate for the circumstances (e.g., nature or dollar amount of the defective pricing disclosure). At a minimum, the contracting officer shall discuss with DCAA the following:

(A) Completeness of the contractor's voluntary disclosure on the affected contract.

(B) Accuracy of the contractor's cost impact calculation for the affected contract.

(C) Potential impact on existing contracts, task or deliver orders, or other proposals the contractor has submitted to the Government.

(ii) Voluntary disclosure of defective pricing is not a voluntary refund as defined in 242.7100 and does not waive the Government entitlement to the recovery of any overpayment plus interest on the overpayments in accordance with FAR 15.407-1(b)(7).

(iii) Voluntary disclosure of defective pricing does not waive the Government's rights to pursue defective pricing claims on the affected contract or any other Government contract.

Sections it refers to

← 215.407 Special cost or pricing areas. · 215.407-2 Make-or-buy programs. →

Rule changes for DFARS Part 215

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

DFARS 215.407-1 Defective certified cost or pricing data · SpendQuery