FAR 15.403—Obtaining certified cost or pricing data.

Prohibition on obtaining certified cost or pricing data (10 U.S.C. chapter 271 and 41 U.S.C. CHAPTER 35).

FAR 15.403-1 explains when the Government may not obtain certified cost or pricing data and when exceptions apply. It covers the basic prohibition for acquisitions at or below the simplified acquisition threshold, the general rule that contracting officers must not require certified cost or pricing data when an exception applies, and the ability to request data other than certified cost or pricing data to support price reasonableness or cost realism. It then lays out the main exceptions: adequate price competition, prices set by law or regulation, commercial products and commercial services, waivers, and modifications of commercial products or commercial services. The section also gives the standards for determining adequate price competition, including special rules for agencies other than DoD, NASA, and the Coast Guard when only one offer is received, and it explains how prices set by law or regulation satisfy the exception. For commercial items, it addresses when a product or service is exempt, when a contracting officer must still require certified cost or pricing data if the item is not actually commercial, and special treatment for certain commercial services and minor modifications. In practice, this section is central to the Truth in Negotiations framework because it determines when the Government can rely on competition, market pricing, or statutory/regulatory pricing instead of requiring certified cost or pricing data.

Other circumstances where certified cost or pricing data are not required.

FAR 15.403-2 identifies two specific situations in which certified cost or pricing data are not required even though the contracting action involves pricing: exercising an option at the price already established at contract award or initial negotiation, and using proposals solely for overrun funding or interim billing price adjustments. The purpose of the section is to prevent unnecessary submission of certified data when the price has already been fixed by contract terms or when the pricing action is limited to funding or billing mechanics rather than a new price negotiation. In practice, this means contractors do not have to prepare a Truthful Cost or Pricing Data submission for these limited actions, and contracting officers should not request one unless another rule independently requires it. The section is narrow, however, and it does not eliminate the need to review the underlying contract terms, the nature of the action, or whether the proposal is truly limited to the stated purpose. It is especially important in option exercises and cost-type or incrementally funded situations, where parties may mistakenly treat a funding or billing adjustment as if it were a new pricing action.

Requiring data other than certified cost or pricing data.

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.

Requiring certified cost or pricing data (10 U.S.C. chapter 271 and 41 U.S.C. chapter 35).

FAR 15.403-4 explains when a contracting officer must require certified cost or pricing data, when higher-level approval can require it below the normal threshold, and what supporting certifications and related data must be obtained. It covers the dollar threshold for prime contracts, how inflation-adjusted thresholds apply over the life of a contract, and the specific actions that trigger the requirement: negotiated contract awards, subcontract awards at any tier in certain circumstances, contract modifications, and negotiated final pricing actions such as termination settlements and total final price agreements. It also addresses the special authority of the head of the contracting activity to require certified cost or pricing data below the threshold, the contractor’s right to request a contract modification for older prime contracts to reflect the updated subcontract threshold, and the required submission of both certified cost or pricing data and a Certificate of Current Cost or Pricing Data. Finally, it clarifies that if an exception later applies, the submitted data are not treated as certified cost or pricing data, and it extends these requirements to contracts entered into on behalf of foreign governments. In practice, this section is the core trigger rule for Truthful Cost or Pricing Data compliance and is central to pricing negotiations, subcontract flowdowns, and post-award modifications.

Instructions for submission of certified cost or pricing data and data other than certified cost or pricing data.

FAR 15.403-5 tells contracting officers how to tell offerors what pricing data they must submit and in what format. It covers four main subjects: whether certified cost or pricing data are required, whether the offeror may request an exception instead of submitting certified data, whether data other than certified cost or pricing data are required, and whether the government needs preaward or postaward access to the offeror’s records. It also addresses the format for submitting certified cost or pricing data, the format for submitting other-than-certified data, and the special submission requirements for data supporting forward pricing rate agreements and final indirect cost proposals. In practice, this section is about making the solicitation clear up front so the offeror knows exactly what evidence must be provided and the contracting officer has the information needed to determine price reasonableness and support negotiations. It also gives the contracting officer flexibility on format, but only within the limits stated in the FAR and only when the solicitation has clearly described the requirement.