H. R. 1107—92 
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 contracting officer limit, to the maximum extent practicable, 
the scope of any request for information relating to commercial 
items from an offeror to only that information that is in the 
form regularly maintained by the offeror in commercial oper-
ations. 
(3) INFORMATION NOT TO BE DISCLOSED.—A statement that 
any information 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 contract to the Federal Government, including 
profit or fee, shall be adjusted to exclude any significant amount 
by which it may be determined by the head of the executive 
agency that the price was increased because the contractor 
(or any subcontractor required to make the certificate 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 contract (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 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 subcon-
tractor. 
(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 submitted by the contractor or subcontractor because 
the contractor or subcontractor— 
(A) was the sole source of the property or services pro-
cured; 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 con-
tractor or subcontractor took no affirmative action to bring
H. R. 1107—93 
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 certification 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 entitled 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 the data were not 
submitted as specified in section 3502(c) of this title before 
that date. 
(2) WHEN NOT ALLOWED.—A contractor shall not be allowed 
to offset an amount otherwise authorized to be offset under 
paragraph (1) if— 
(A) the certification under section 3502(b) of this title 
with respect to the cost or pricing data involved was known 
to be false when signed; or 
(B) the Federal Government proves that, had the cost 
or pricing data referred to in paragraph (1)(B) been sub-
mitted to the Federal Government before date of agreement 
on the price of the contract (or price of the modification), 
or, if applicable, under subsection (a)(2), another date 
agreed on by the parties, the submission of the cost or 
pricing data would not have resulted in an increase in 
that price in the amount to be offset. 
§ 3507. Interest and penalties for certain overpayments 
(a) IN GENERAL.—If the Federal Government makes an overpay-
ment to a contractor under a contract with an executive agency 
subject to this chapter and the overpayment was due to the submis-
sion by the contractor of defective cost or pricing data, the contractor 
shall be liable to the Federal Government— 
(1) for interest on the amount of the overpayment, to be 
computed— 
(A) for the period beginning on the date the overpayment 
was made to the contractor and ending on the date the 
contractor repays the amount of the overpayment to the 
Federal Government; and 
(B) at the current rate prescribed by the Secretary of 
the Treasury under section 6621 of the Internal Revenue 
Code of 1986 (26 U.S.C. 6621); and 
(2) if the submission of the defective data was a knowing 
submission, for an additional amount equal to the amount 
of the overpayment.