View Rule

The Office of Personnel Management (OPM) is issuing this technical amendment to update the Federal Employees Health Benefits Acquisition Regulations (FEHBAR) cost and pricing data threshold used in certain FEHBAR contract clauses. The threshold increased from $750,000 to $2,000,000 in Section 811 of the National Defense Authorization Act for Fiscal Year 2018, (FY 2018 NDAA), Public Law No. 11591. The law provides for the change to take effect for the first contract year occurring after June 30, 2018. The contractor shall be required to submit cost or pricing data before the pricing of a change or modification to the contract if:

(A) in the case of a change or modification made to a primary or subcontract and the price adjustment is expected to exceed $2,000,000;

(B) in the case of a change or modification made to a primary or subcontract that was entered into on or before June 30, 2018, and that has been modified the price adjustment is expected to exceed $750,000; and

(C) in the case of a change or modification not covered by subparagraph (A) or (B), the price adjustment is expected to exceed $750,000.

This technical amendment makes changes to the FEHBAR to incorporate new legal references that increase the dollar threshold for prime and subcontractors.