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subcontract, or modification of a contract or subcontract, the contracting of-
ficer shall require submission of data other than certified cost or pricing 
data to the extent necessary to determine the reasonableness of the price 
of the contract, subcontract, or modification of the contract or subcontract. 
Except in the case of a contract or subcontract covered by the exceptions 
in section 3503(a)(1) of this title, the contracting officer shall require that 
the data submitted include, at a minimum, appropriate information on the 
prices at which the same item or similar items have previously been sold 
that is adequate for evaluating the reasonableness of the price for the pro-
curement. 
(b) LIMITATIONS ON AUTHORITY.—The Federal Acquisition Regulation 
shall include the following provisions regarding the types of information that 
contracting officers may require under subsection (a): 
(1) REASONABLE LIMITATIONS.—Reasonable limitations on requests 
for sales data relating to commercial items. 
(2) LIMITATION ON SCOPE OF REQUEST.—A requirement that a con-
tracting officer limit, to the maximum extent practicable, the scope of 
any request for information relating to commercial items from an offer-
or to only that information that is in the form regularly maintained 
by the offeror in commercial operations. 
(3) INFORMATION NOT TO BE DISCLOSED.—A statement that any in-
formation received relating to commercial items that is exempt from 
disclosure under section 552(b) of title 5 shall not be disclosed by the 
Federal Government. 
§ 3506. Price reductions for defective cost or pricing data 
(a) PROVISION REQUIRING ADJUSTMENT.— 
(1) IN GENERAL.—A prime contract (or change or modification to 
a prime contract) under which a certificate under section 3502(b) of 
this title is required shall contain a provision that the price of the con-
tract to the Federal Government, including profit or fee, shall be ad-
justed to exclude any significant amount by which it may be deter-
mined by the head of the executive agency that the price was increased 
because the contractor (or any subcontractor required to make the cer-
tificate available) submitted defective cost or pricing data. 
(2) WHAT CONSTITUTES DEFECTIVE COST OR PRICING DATA.—For 
the purposes of this chapter, defective cost or pricing data are cost or 
pricing data that, as of the date of agreement on the price of the con-
tract (or another date agreed on between the parties), were inaccurate, 
incomplete, or noncurrent. If for purposes of the preceding sentence the 
parties agree on a date other than the date of agreement on the price 
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of the contract, the date agreed on by the parties shall be as close to 
the date of agreement on the price of the contract as is practicable. 
(b) VALID DEFENSE.—In determining for purposes of a contract price 
adjustment under a contract provision required by subsection (a) whether, 
and to what extent, a contract price was increased because the contractor 
(or a subcontractor) submitted defective cost or pricing data, it is a defense 
that the Federal Government did not rely on the defective data submitted 
by the contractor or subcontractor. 
(c) INVALID DEFENSES.—It is not a defense to an adjustment of the 
price of a contract under a contract provision required by subsection (a) 
that— 
(1) the price of the contract would not have been modified even if 
accurate, complete, and current cost or pricing data had been sub-
mitted by the contractor or subcontractor because the contractor or 
subcontractor— 
(A) was the sole source of the property or services procured; or 
(B) otherwise was in a superior bargaining position with respect 
to the property or services procured; 
(2) the contracting officer should have known that the cost or pricing 
data in issue were defective even though the contractor or subcon-
tractor took no affirmative action to bring the character of the data 
to the attention of the contracting officer; 
(3) the contract was based on an agreement between the contractor 
and the Federal Government about the total cost of the contract and 
there was no agreement about the cost of each item procured under 
the contract; or 
(4) the prime contractor or subcontractor did not submit a certifi-
cation of cost or pricing data relating to the contract as required by 
section 3502(b) of this title. 
(d) OFFSETS.— 
(1) WHEN ALLOWED.—A contractor shall be allowed to offset an 
amount against the amount of a contract price adjustment under a 
contract provision required by subsection (a) if— 
(A) the contractor certifies to the contracting officer (or to a 
designated representative of the contracting officer) that, to the 
best of the contractor’s knowledge and belief, the contractor is en-
titled to the offset; and 
(B) the contractor proves that the cost or pricing data were 
available before the date of agreement on the price of the contract 
(or price of the modification), or, if applicable, consistent with 
subsection (a)(2), another date agreed on by the parties, and that 
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