15.403-4 Requiring certified cost or pricing

data (10 U.S.C. chapter 271 and 41 U.S.C.

chapter 35).

(a)

(1) The contracting officer shall obtain certified cost or pricing data only if the contracting officer

concludes that none of the exceptions in 15.403-1(b) applies. However, if the contracting officer has

reason to believe exceptional circumstances exist and has sufficient data available to determine a

fair and reasonable price, then the contracting officer should consider requesting a waiver under the

exception at 15.403-1(b)(4). The threshold for obtaining certified cost or pricing data is $750,000 for

prime contracts awarded before July 1, 2018, and $2 million for prime contracts awarded on or after

July 1, 2018.When a clause refers to this threshold, and if the threshold is adjusted for inflation

pursuant to 1.109(a), then pursuant to 1.109(d) the changed threshold applies throughout the

remaining term of the contract, unless there is a subsequent threshold adjustment. Unless an

exception applies, certified cost or pricing data are required before accomplishing any of the

following actions expected to exceed the current threshold or, in the case of existing contracts, the

threshold specified in the contract:

(i) The award of any negotiated contract (except for undefinitized actions such as letter contracts).

(ii) The award of a subcontract at any tier, if the contractor and each higher-tier subcontractor were

required to furnish certified cost or pricing data (but see waivers at 15.403-1(c)(4)).

(iii) The modification of any sealed bid or negotiated contract (whether or not certified cost or

pricing data were initially required) or any subcontract covered by paragraph (a)(1)(ii) of this

subsection. Price adjustment amounts must consider both increases and decreases (e.g., a $500,000

modification resulting from a reduction of $1,500,000 and an increase of $1,000,000 is a $2,500,000

pricing adjustment exceeding the $2,000,000 threshold). This requirement does not apply when

unrelated and separately priced changes for which certified cost or pricing data would not otherwise

be required are included for administrative convenience in the same modification. Negotiated final

pricing actions (such as termination settlements and total final price agreements for fixed-price

incentive and redeterminable contracts) are contract modifications requiring certified cost or pricing

data if-

(A) The total final price agreement for such settlements or agreements exceeds the pertinent

threshold set forth at paragraph (a)(1) of this subsection; or

(B) The partial termination settlement plus the estimate to complete the continued portion of the

contract exceeds the pertinent threshold set forth at paragraph (a)(1) of this subsection (see

49.105(c)(15)).

(2) Unless prohibited because an exception at 15.403-1(b) applies, the head of the contracting

activity, without power of delegation, may authorize the contracting officer to obtain certified cost or

pricing data for pricing actions below the pertinent threshold in paragraph (a)(1) of this subsection,

provided the action exceeds the simplified acquisition threshold. The head of the contracting activity

shall justify the requirement for certified cost or pricing data. The documentation shall include a
written finding that certified cost or pricing data are necessary to determine whether the price is

fair and reasonable and the facts supporting that finding.

(3) Upon the request of a contractor that was required to submit certified cost or pricing data in

connection with a prime contract entered into before July 1, 2018, the contracting officer shall

modify the contract, without requiring consideration, to reflect a $2 million threshold for obtaining

certified cost or pricing data on subcontracts entered on and after July 1, 2018. See 15.408.

(b) When certified cost or pricing data are required, the contracting officer shall require the

contractor or prospective contractor to submit to the contracting officer (and to have any

subcontractor or prospective subcontractor submit to the prime contractor or appropriate

subcontractor tier) the following in support of any proposal:

(1) The certified cost or pricing data and data other than certified cost or pricing data required by

the contracting officer to determine that the price is fair and reasonable.

(2) A Certificate of Current Cost or Pricing Data, in the format specified in 15.406-2, certifying that

to the best of its knowledge and belief, the cost or pricing data were accurate, complete, and current

as of the date of agreement on price or, if applicable, an earlier date agreed upon between the

parties that is as close as practicable to the date of agreement on price.

(c) If certified cost or pricing data are requested and submitted by an offeror, but an exception is

later found to apply, the data must not be considered certified cost or pricing data as defined in

2.101 and must not be certified in accordance with 15.406-2

(d) The requirements of this subsection also apply to contracts entered into by an agency on behalf

of a foreign government.

Parent topic: 15.403 Obtaining certified cost or pricing data.