FAR 15.403-3—Requiring data other than certified cost or pricing data.
Plain-English Summary
FAR 15.403-3 explains when a contracting officer may require data other than certified cost or pricing data and how that data must be used to support a fair and reasonable price. It covers the basic rule for non-certified acquisitions, the use of Government and other secondary sources, when the contracting officer may require offeror-provided data, when cost data may be needed for cost realism or lack of adequate price competition, and the minimum sales-history information that must be requested unless an exception applies. It also addresses how to use the contractor’s normal submission format, how current the data must be, and the special statutory consequence for an offeror that refuses to provide required data. For commercial products and commercial services, it requires price analysis, limits requests for sales data to same or similar items and relevant time periods, and restricts requests to information the offeror normally maintains in its commercial operations. It also protects certain commercial sales data from disclosure outside the Government and points to the special rule for certain services that are not themselves sold competitively in substantial quantities but are of a type that is. In practice, this section is about balancing the Government’s need for enough information to negotiate a fair price against the policy of minimizing unnecessary data requests, especially in commercial buying.
Key Rules
Use secondary sources first
When certified cost or pricing data are not required, the contracting officer must first obtain and use available Government or other secondary-source data to determine price reasonableness. The officer should not go to the offeror for data unless outside sources are inadequate.
Request offeror data only as needed
If adequate data from sources other than the offeror are not available, the contracting officer may require data other than certified cost or pricing data to the extent necessary to determine a fair and reasonable price. This can include data needed for a cost realism analysis.
Consider cost data when competition is lacking
When there is not adequate price competition, the contracting officer must consider whether cost data are necessary to support price analysis. The decision should be tied to what is needed to reach a fair and reasonable price determination.
Require prior sales information
Unless an exception under FAR 15.403-1(b)(1) or (2) applies, the offeror’s submission must include at least appropriate data on the prices at which the same item or similar items were previously sold, sufficient to determine price reasonableness.
Use the contractor’s normal format
The contracting officer should use the contractor’s existing format for submitting the data. This reduces burden and helps ensure the Government receives information in a form the contractor regularly maintains.
Keep data current for negotiations
The contracting officer must ensure the data used in negotiations are current enough to support a fair and reasonable price. Requests for updated data should be limited to changes that materially affect the proposal, such as updated price lists.
Noncompliance can bar award
If an offeror fails to provide required data under paragraph (a)(1), the offeror is generally ineligible for award unless the HCA determines award is in the Government’s best interest after considering the effort to obtain the data, the need for the item or service, and the harm or increased cost to the Government if award is not made.
Adequate price competition usually ends the inquiry
When adequate price competition exists, additional data are generally not needed to determine price reasonableness. If unusual circumstances justify additional data, the contracting officer should obtain it from sources other than the offeror to the maximum extent practicable.
Commercial buys still require price analysis
For commercial products and commercial services, the contracting officer must at least use price analysis to determine whether the price is fair and reasonable. A catalog price alone does not make a price fair and reasonable.
Commercial sales data requests are limited
For commercial products and services, requests for sales data must be limited to same or similar items, a relevant time period, and, to the maximum extent practicable, information maintained in the offeror’s normal commercial records. The Government also may not disclose protected commercial sales data outside the Government.
Special rule for certain services
For services not sold competitively in substantial quantities in the commercial marketplace, but of a type that is sold competitively in substantial quantities, the contracting officer must look to FAR 15.403-1(c)(3)(ii) for the applicable treatment.
Responsibilities
Contracting Officer
Obtain and use available Government or other secondary-source data before requesting offeror data; decide whether offeror-provided data are necessary; determine whether cost data are needed when adequate price competition is lacking; require at least prior sales-price data unless an exception applies; use the contractor’s normal submission format; ensure data are current for negotiations; limit updated-data requests to material changes; apply the award-bar rule if the offeror does not comply; use price analysis for commercial products and services; limit commercial sales-data requests to same or similar items, relevant periods, and normally maintained records; protect non-disclosable commercial data; and consult the special rule for certain services.
Offeror / Contractor
Provide data other than certified cost or pricing data when required to support a fair and reasonable price determination, including data needed for cost realism analysis; submit at least appropriate prior sales-price data unless an exception applies; provide data in the contractor’s normal format; and update data when changes materially affect the proposal, such as changes in price lists.
Head of the Contracting Activity (HCA)
If an offeror fails to provide required data, determine whether award is nevertheless in the Government’s best interest by considering the effort made to obtain the data, the need for the item or service, and the increased cost or significant harm to the Government if award is not made.
Government / Agency
Use available secondary-source information to support pricing decisions; protect commercial sales data from improper outside disclosure when exempt from disclosure; and ensure pricing requests and negotiations stay within the statutory and regulatory limits on commercial data collection.
Practical Implications
This section is a reminder that even when certified cost or pricing data are not required, the Government can still ask for meaningful supporting information if it cannot otherwise determine price reasonableness.
For contractors, the biggest risk is refusing or failing to provide required data; that can make the offeror ineligible for award unless the HCA grants a best-interest exception.
For contracting officers, a common mistake is asking for broad or outdated sales data when narrower, current, secondary-source information would be enough; the rule pushes officers to minimize burden and tailor requests.
Commercial item buys are not exempt from scrutiny: a catalog or published price is not automatically fair and reasonable, and the officer may need sales history or other supporting data if price analysis is inconclusive.
Requests for commercial sales data must be tightly scoped and tied to the item, time period, and records the offeror normally keeps, which helps avoid overreaching and reduces disputes over proprietary information.
Official Regulatory Text
(a) (1) In those acquisitions that do not require certified cost or pricing data, the contracting officer shall— (i) Obtain whatever data are available from Government or other secondary sources and use that data in determining a fair and reasonable price; (ii) Require submission of data other than certified cost or pricing data, as defined in 2.101 , from the offeror to the extent necessary to determine a fair and reasonable price ( 10 U.S.C. 3705(a) and 41 U.S.C.3505(a)) if the contracting officer determines that adequate data from sources other than the offeror are not available. This includes requiring data from an offeror to support a cost realism analysis; (iii) Consider whether cost data are necessary to determine a fair and reasonable price when there is not adequate price competition; (iv) Require that the data submitted by the offeror include, at a minimum, appropriate data on the prices at which the same item or similar items have previously been sold, adequate for determining the reasonableness of the price unless an exception under 15.403-1 (b)(1) or (2) applies; and (v) Consider the guidance in section 3.3 , chapter 3, volume I, of the Contract Pricing Reference Guide cited at 15.404-1 (a)(7) to determine the data an offeror shall be required to submit. (2) The contractor’s format for submitting the data should be used (see 15.403-5 (b)(2)). (3) The contracting officer shall ensure that data used to support price negotiations are sufficiently current to permit negotiation of a fair and reasonable price. Requests for updated offeror data should be limited to data that affect the adequacy of the proposal for negotiations, such as changes in price lists. (4) As specified in section 808 of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 (Pub. L. 105-261), an offeror who does not comply with a requirement to submit data for a contract or subcontract in accordance with paragraph (a)(1) of this subsection is ineligible for award unless the HCA determines that it is in the best interest of the Government to make the award to that offeror, based on consideration of the following: (i) The effort made to obtain the data. (ii) The need for the item or service. (iii) Increased cost or significant harm to the Government if award is not made. (b) Adequate price competition. When adequate price competition exists (see 15.403-1 (c)(1)), generally no additional data are necessary to determine the reasonableness of price. However, if there are unusual circumstances where it is concluded that additional data are necessary to determine the reasonableness of price, the contracting officer shall, to the maximum extent practicable, obtain the additional data from sources other than the offeror. In addition, the contracting officer should request data to determine the cost realism of competing offers or to evaluate competing approaches. (c) Commercial products and commercial services. (1) At a minimum, the contracting officer must use price analysis to determine whether the price is fair and reasonable whenever the contracting officer acquires a commercial product or commercial service (see 15.404-1 (b)). The fact that a price is included in a catalog does not, in and of itself, make it fair and reasonable. If the contracting officer cannot determine whether an offered price is fair and reasonable, even after obtaining additional data from sources other than the offeror, then the contracting officer shall require the offeror to submit data other than certified cost or pricing data to support further analysis (see 15.404-1 ). This data may include history of sales to non-governmental and governmental entities, cost data, or any other information the contracting officer requires to determine the price is fair and reasonable. Unless an exception under 15.403-1 (b)(1) or (2) applies, the contracting officer shall require that the data submitted by the offeror include, at a minimum, appropriate data on the prices at which the same item or similar items have previously been sold, adequate for determining the reasonableness of the price. (2) Limitations relating to commercial products or commercial services 10 U.S.C. 3705(b) and 41 U.S.C. 3505(b) ) . (i) The contracting officer shall limit requests for sales data relating to commercial products or commercial services to data for the same or similar items during a relevant time period. (ii) The contracting officer shall, to the maximum extent practicable, limit the scope of the request for data relating to commercial products or commercial services to include only data that are in the form regularly maintained by the offeror as part of its commercial operations. (iii) The Government shall not disclose outside the Government data obtained relating to commercial products or commercial services that is exempt from disclosure under 24.202 (a) or the Freedom of Information Act ( 5 U.S.C. 552(b) ). (3) For services that are not offered and sold competitively in substantial quantities in the commercial marketplace, but are of a type offered and sold competitively in substantial quantities in the commercial marketplace, see 15.403-1 (c)(3)(ii).