§ 3702. Required cost or pricing data and certification

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(a)When Required.— The head of an agency shall require offerors, contractors, and subcontractors to make cost or pricing data available as follows:

(1)Offeror for prime contract.— An offeror for a prime contract under a chapter 137 legacy provision to be entered into using procedures other than sealed-bid procedures that is only expected to receive one bid shall be required to submit cost or pricing data before the award of a contract if—

(A)in the case of a prime contract entered into after June 30, 2026, the price of the contract to the United States is expected to exceed $10,000,000; and

(B)in the case of a prime contract entered into on or before June 30, 2026, the price of the contract to the United States is expected to exceed $2,000,000.

(2)Contractor.— The contractor for a prime contract under a chapter 137 legacy provision shall be required to submit cost or pricing data before the pricing of a change or modification to the contract if the price adjustment is expected to exceed $10,000,000.

(3)Offeror for subcontract.—

(A)An offeror for a subcontract (at any tier) of a contract under this chapter shall be required to submit cost or pricing data before the award of the subcontract if the prime contractor and each higher-tier subcontractor have been required to make available cost or pricing data under this chapter and—

(i)in the case of a prime contract entered into after June 30, 2026, the price of the subcontract is expected to exceed $10,000,000; or

(ii)in the case of a prime contract entered into on or before June 30, 2026, the price of the subcontract is expected to exceed $2,000,000..1

(i)An offeror for a subcontract (at any tier) of a contract under this chapter that is required to submit cost or pricing data under subparagraph

(A)with respect to such subcontract may submit prices paid for the covered goods and services of such offeror for such subcontract under this clause if—

(I)such offeror is a nontraditional defense contractor (as defined in section 3014 of this title);

(II)the prices to be submitted are prices that were paid for the same goods and services as such covered goods and services; and

(III)the price of such subcontract is not expected to exceed $5,000,000.

(ii)The submission of prices paid under clause

(i)by an offeror with respect to a subcontract shall be deemed to be the submission of cost or pricing data by such offeror with respect to such subcontract as required by subparagraph

(A)if a contracting officer of the Department of Defense determines that the prices submitted under such clause are fair and reasonable based on supported cost or pricing data within the last 12 months.

(iii)In this subparagraph, the term “covered goods and services” means, with respect to an offeror for a subcontract (at any tier), the goods and services such offeror would provide under such subcontract.

(4)Subcontractor.— The subcontractor for a subcontract covered by paragraph

(3)shall be required to submit cost or pricing data before the pricing of a change or modification to the subcontract if the price adjustment is expected to exceed $2,000,000.

(b)Certification.— A person required, as an offeror, contractor, or subcontractor, to submit cost or pricing data under subsection

(a)(or required by the head of the agency concerned to submit such data under section 3704 of this title) shall be required to certify that, to the best of the person’s knowledge and belief, the cost or pricing data submitted are accurate, complete, and current.

(c)To Whom Submitted.— Cost or pricing data required to be submitted under subsection

(a)(or under section 3704 of this title), and a certification required to be submitted under subsection (b), shall be submitted—

(1)in the case of a submission by a prime contractor (or an offeror for a prime contract), to the contracting officer for the contract (or to a designated representative of the contracting officer); or

(2)in the case of a submission by a subcontractor (or an offeror for a subcontract), to the prime contractor.

(d)Applicability of Chapter.— Except as provided under section 3703 of this title, this chapter applies to contracts entered into by the head of an agency on behalf of a foreign government.

(e)Subcontracts Not Affected by Waiver.— A waiver of requirements for submission of certified cost or pricing data that is granted under section 3703(a)(3) of this title in the case of a contract or subcontract does not waive the requirement under subsection (a)(3) for submission of cost or pricing data in the case of subcontracts under that contract or subcontract unless the head of the procuring activity granting the waiver determines that the requirement under that subsection should be waived in the case of such subcontracts and justifies in writing the reasons for the determination.

(f)Modifications to Prior Contracts.— Under subsection (a), in connection with a prime contract entered into on or before June 30, 2018, the head of the agency that entered into such contract shall modify the contract as soon as practicable to reflect paragraphs

(1)and

(2)of such subsection, without requiring consideration.

(g)Adjustment of Amounts.— Effective on October 1 of each year that is divisible by 5, each amount set forth in subsection

(a)shall be adjusted in accordance with section 1908 of title 41.

(Added and amended Pub. L. 116–283, div. A, title XVIII, § 1831(a), (c), Jan. 1, 2021, 134 Stat. 4209; Pub. L. 117–81, div. A, title VIII, § 804(b), title XVII, § 1701(b)(10)(B)–(G), (c)(3), Dec. 27, 2021, 135 Stat. 1816, 2133, 2134, 2136; Pub. L. 118–31, div. A, title XVIII, § 1801(a)(29), Dec. 22, 2023, 137 Stat. 684; Pub. L. 118–159, div. A, title VIII, § 815, Dec. 23, 2024, 138 Stat. 1980; Pub. L. 119–60, div. A, title XVII, § 1701(a)(25), title XVIII, § 1804(c), Dec. 18, 2025, 139 Stat. 1209, 1234.)

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