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(A) adequate price competition; or 
(B) prices set by law or regulation; 
(2) for the acquisition of a commercial item; or 
(3) in an exceptional case when the head of the procuring activity, 
without delegation, determines that the requirements of this chapter 
may be waived and justifies in writing the reasons for the determina-
tion. 
(b) MODIFICATIONS OF CONTRACTS AND SUBCONTRACTS FOR COMMER-
CIAL ITEMS.—In the case of a modification of a contract or subcontract for 
a commercial item that is not covered by the exception to the submission 
of certified cost or pricing data in paragraph (1) or (2) of subsection (a), 
submission of certified cost or pricing data shall not be required under sec-
tion 3502 of this title if— 
(1) the contract or subcontract being modified is a contract or sub-
contract for which submission of certified cost or pricing data may not 
be required by reason of paragraph (1) or (2) of subsection (a); and 
(2) the modification would not change the contract or subcontract 
from a contract or subcontract for the acquisition of a commercial item 
to a contract or subcontract for the acquisition of an item other than 
a commercial item. 
§ 3504. Cost or pricing data on below-threshold contracts 
(a) AUTHORITY TO REQUIRE SUBMISSION.—Subject to subsection (b), 
when certified cost or pricing data are not required to be submitted by sec-
tion 3502 of this title for a contract, subcontract, or modification of a con-
tract or subcontract, the data may nevertheless be required to be submitted 
by the head of the procuring activity, but only if the head of the procuring 
activity determines that the data are necessary for the evaluation by the 
agency of the reasonableness of the price of the contract, subcontract, or 
modification of a contract or subcontract. In any case in which the head 
of the procuring activity requires the data to be submitted under this sec-
tion, the head of the procuring activity shall justify in writing the reason 
for the requirement. 
(b) EXCEPTION.—The head of the procuring activity may not require cer-
tified cost or pricing data to be submitted under this section for any con-
tract or subcontract, or modification of a contract or subcontract, covered 
by the exceptions in section 3503(a)(1) or (2) of this title. 
(c) DELEGATION OF AUTHORITY PROHIBITED.—The head of a procuring 
activity may not delegate the functions under this section. 
§ 3505. Submission of other information 
(a) AUTHORITY TO REQUIRE SUBMISSION.—When certified cost or pric-
ing data are not required to be submitted under this chapter for a contract,
115 
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