DOD Issues Final Rule Regarding Voluntary Disclosures Of Defective Pricing

On May 4, 2018, the US Department of Defense (DOD) issued a final rule intended to provide incentives to DOD contractors to voluntarily disclose defective pricing after the award of an affected DOD contract.  For DOD contracting officers, the final DFARS rule adjusts FAR 15.407-1(c), which requires a contracting officer to request an audit to evaluate the accuracy, completeness, and currency of certified cost or pricing data if the contracting officer learns or suspects after contract award that the furnished data did not meet this criteria. The final rule softens this requirement for DOD contracts by allowing DOD contracting officers to determine the nature and scope of DCAA audits when a contractor has voluntarily disclosed defective pricing.