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FAR and DFARS › FAR Part 52: Solicitation Provisions and Contract Clauses › Subpart 52.2

FAR 52.215-14 Integrity of Unit Prices.

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 clause requires that when you submit a proposal to negotiate prices for supply items, you must distribute costs so that unit prices reflect each item's base cost, and you cannot use methods that distort unit prices. It also requires you to identify supplies you will not manufacture or add significant value to when the Contracting Officer asks, and to pass the clause down to most subcontracts.

Applies to: Offerors and contractors submitting proposals for negotiated supply prices, and their subcontractors

What it requires

  • Distribute costs within contracts so unit prices are in proportion to items' base cost
  • Do not use any method of distributing costs to line items that distorts unit prices
  • When requested by the Contracting Officer, identify supplies you will not manufacture or to which you will not contribute significant value
  • Insert the substance of this clause, less paragraph (b), in all subcontracts except those listed as excluded

Key terms: unit prices · base cost · simplified acquisition threshold · commercial products · commercial services

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

The text

As prescribed in 15.408(f)(1), insert the following clause:

Integrity of Unit Prices (NOV 2021)

(a) Any proposal submitted for the negotiation of prices for items of supplies shall distribute costs within contracts on a basis that ensures that unit prices are in proportion to the items' base cost (e.g., manufacturing or acquisition costs). Any method of distributing costs to line items that distorts unit prices shall not be used. For example, distributing costs equally among line items is not acceptable except when there is little or no variation in base cost. Nothing in this paragraph requires submission of certified cost or pricing data not otherwise required by law or regulation.

(b) When requested by the Contracting Officer, the Offeror/Contractor shall also identify those supplies that it will not manufacture or to which it will not contribute significant value.

(c) The Contractor shall insert the substance of this clause, less paragraph (b) of this clause, in all subcontracts for other than: acquisitions at or below the simplified acquisition threshold, as defined in Federal Acquisition Regulation (FAR) 2.101 on the date of subcontract award; construction or architect-engineer services under FAR part 36; utility services under FAR part 41; services where supplies are not required; commercial products and commercial services; and petroleum products.

(End of clause)

Alternate I (OCT 1997). As prescribed in 15.408(f)(2), substitute the following paragraph (b) for paragraph (b) of the basic clause:

(b) The Offeror/Contractor shall also identify those supplies that it will not manufacture or to which it will not contribute significant value.

Sections it refers to

  • 15.408 Solicitation provisions and contract clauses.
  • 2.101 Definitions.

Sections that refer to it

  • 15.408 Solicitation provisions and contract clauses.

← 52.215-13 Subcontractor Certified Cost or Pricing Data—Modifications. · 52.215-15 Pension adjustments and asset reversions. →

Rule changes for FAR Part 52

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

FAR 52.215-14 Integrity of Unit Prices · SpendQuery