Code of Federal Regulations Title 48. Federal Acquisition Regulations System 48.36.214 Special procedures for price negotiation in construction contracting

(1) When submission of certified cost or pricing data is not required (see 15.403–1 and 15.403–2), and any element of proposed cost differs significantly from the Government estimate, the contracting officer should request the offeror to submit cost information concerning that element (e.g., wage rates or fringe benefits, significant materials, equipment allowances, and subcontractor costs).

(2) When a proposed price is significantly lower than the Government estimate, the contracting officer shall make sure both the offeror and the Government estimator completely understand the scope of the work. If negotiations reveal errors in the Government estimate, the estimate shall be corrected and the changes shall be documented in the contract file.