52.215-14 — Integrity of Unit Prices.
Researched by the BidStride Research Team
What This Clause Requires
FAR 52.215-14 — Integrity of Unit Prices.. This clause is part of the Federal Acquisition Regulation and may be included in government contracts as a solicitation provision or contract clause.
Official Regulation Text
52.215-14 Integrity of Unit Prices. 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. [62 FR 51263, Sept. 30, 1997, as amended at 75 FR 53151, Aug. 30, 2010; 85 FR 27094, May 6, 2020; 86 FR 61034, Nov. 4, 2021]
Compliance Checklist
- 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.
- 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.
- 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.
Flow-Down to Subcontractors
Flow-down required
This clause must be included in subcontracts with no subcontractors where the subcontractor will perform work covered by this clause. Typically appears in contract Section Section I.
Frequently Asked Questions
FAR 52.215-14 (Integrity of Unit Prices.) is a federal acquisition regulation clause that may be included in government contracts. It falls under the contracting-methods category.
FAR 52.215-14 is typically required when the contracting officer determines it's applicable to the specific procurement. Check the solicitation's Section I for included clauses.
Whether FAR 52.215-14 flows down depends on the specific clause language and contract type. Review the clause text for flow-down provisions.
This summary is for informational purposes only and reflects the BidStride Research Team's plain-English interpretation of the regulation. It is not legal advice and does not constitute an attorney-client relationship. Always consult the official Federal Acquisition Regulation (FAR) or Defense Federal Acquisition Regulation Supplement (DFARS) text and qualified legal counsel for compliance decisions.