111 
(3) SUBCONTRACT.—The term ‘‘subcontract’’ includes a transfer of 
commercial items between divisions, subsidiaries, or affiliates of a con-
tractor or a subcontractor. 
(b) REGULATIONS.— 
(1) MINIMIZING ABUSE OF COMMERCIAL SERVICES ITEM AUTHOR-
ITY.—The Federal Acquisition Regulation shall ensure that services 
that are not offered and sold competitively in substantial quantities in 
the commercial marketplace, but are of a type offered and sold com-
petitively in substantial quantities in the commercial marketplace, may 
be treated as commercial items for purposes of this chapter only if the 
contracting officer determines in writing that the offeror has submitted 
sufficient information to evaluate, through price analysis, the reason-
ableness of the price for the services. 
(2) INFORMATION TO SUBMIT.—To the extent necessary to make a 
determination under paragraph (1), the contracting officer may request 
the offeror to submit— 
(A) prices paid for the same or similar commercial items under 
comparable terms and conditions by both government and com-
mercial customers; and 
(B) if the contracting officer determines that the information 
described in subparagraph (A) is not sufficient to determine the 
reasonableness of price, other relevant information regarding the 
basis for price or cost, including information on labor costs, mate-
rial costs, and overhead rates. 
§ 3502. Required cost or pricing data and certification 
(a) WHEN REQUIRED.—The head of an executive agency shall require 
offerors, contractors, and subcontractors to make cost or pricing data avail-
able as follows: 
(1) OFFEROR FOR PRIME CONTRACT.—An offeror for a prime con-
tract under this division to be entered into using procedures other than 
sealed-bid procedures shall be required to submit cost or pricing data 
before the award of a contract if— 
(A) in the case of a prime contract entered into after October 
13, 1994, the price of the contract to the Federal Government is 
expected to exceed $500,000; and 
(B) in the case of a prime contract entered into on or before 
October 13, 1994, the price of the contract to the Federal Govern-
ment is expected to exceed $100,000. 
(2) CONTRACTOR.—The contractor for a prime contract under this 
division shall be required to submit cost or pricing data before the pric-
ing of a change or modification to the contract if— 
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112 
(A) in the case of a change or modification made to a prime 
contract referred to in paragraph (1)(A), the price adjustment is 
expected to exceed $500,000; 
(B) in the case of a change or modification made to a prime 
contract that was entered into on or before October 13, 1994, and 
that has been modified pursuant to subsection (f), the price ad-
justment is expected to exceed $500,000; and 
(C) in the case of a change or modification not covered by sub-
paragraph (A) or (B), the price adjustment is expected to exceed 
$100,000. 
(3) OFFEROR FOR SUBCONTRACT.—An offeror for a subcontract (at 
any tier) of a contract under this division shall be required to submit 
cost or pricing data before the award of the subcontract if the prime 
contractor and each higher-tier subcontractor have been required to 
make available cost or pricing data under this chapter and— 
(A) in the case of a subcontract under a prime contract referred 
to in paragraph (1)(A), the price of the subcontract is expected 
to exceed $500,000; 
(B) in the case of a subcontract entered into under a prime con-
tract that was entered into on or before October 13, 1994, and 
that has been modified pursuant to subsection (f), the price of the 
subcontract is expected to exceed $500,000; and 
(C) in the case of a subcontract not covered by subparagraph 
(A) or (B), the price of the subcontract is expected to exceed 
$100,000. 
(4) SUBCONTRACTOR.—The subcontractor for a subcontract covered 
by paragraph (3) shall be required to submit cost or pricing data before 
the pricing of a change or modification to the subcontract if— 
(A) in the case of a change or modification to a subcontract re-
ferred to in paragraph (3)(A) or (B), the price adjustment is ex-
pected to exceed $500,000; and 
(B) in the case of a change or modification to a subcontract re-
ferred to in paragraph (3)(C), the price adjustment is expected to 
exceed $100,000. 
(b) CERTIFICATION.—A person required, as an offeror, contractor, or 
subcontractor, to submit cost or pricing data under subsection (a) (or re-
quired by the head of the procuring activity concerned to submit the data 
under section 3504 of this title) shall be required to certify that, to the best 
of the person’s knowledge and belief, the cost or pricing data submitted are 
accurate, complete, and current. 
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