US Code

Public Law 119-73 (01/23/2026)

10 U.S.C. § 3702

Required cost or pricing data and certification

(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 , 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 , 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 , the price of the subcontract is expected to exceed $10,000,000; or
(ii)
1
1 So in original.
in the case of a prime contract entered into on or before , the price of the subcontract is expected to exceed $2,000,000..
(B)
(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)
section 3014 of this title such offeror is a nontraditional defense contractor (as defined in );
(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 .—

section 3704 of this titleA 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 ) 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 .—

section 3704 of this titleCost or pricing data required to be submitted under subsection (a) (or under ), 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 .—

section 3703 of this titleExcept as provided under , 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 .—

section 3703(a)(3) of this titleA waiver of requirements for submission of certified cost or pricing data that is granted under 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 , 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 .—

section 1908 of title 41Effective on October 1 of each year that is divisible by 5, each amount set forth in subsection (a) shall be adjusted in accordance with .

Pub. L. 116–283, div. A, title XVIII, § 1831(a)134 Stat. 4209Pub. L. 117–81, div. A, title VIII, § 804(b)135 Stat. 1816Pub. L. 118–31, div. A, title XVIII, § 1801(a)(29)137 Stat. 684Pub. L. 118–159, div. A, title VIII, § 815138 Stat. 1980Pub. L. 119–60, div. A, title XVII, § 1701(a)(25)139 Stat. 1209(Added and amended , (c), , ; , title XVII, § 1701(b)(10)(B)–(G), (c)(3), , , 2133, 2134, 2136; , , ; , , ; , title XVIII, § 1804(c), , , 1234.)

Editorial Notes

Codification

section 2306a of this titlePub. L. 116–283, § 1831(c)Pub. L. 99–500, § 101(c) [title X, § 952(a)]100 Stat. 1783–82Pub. L. 99–591, § 101(c) [title X, § 952(a)]100 Stat. 3341–82Pub. L. 99–661, div. A, title IX100 Stat. 3945Pub. L. 100–26, § 3(5)101 Stat. 273Pub. L. 100–180, div. A, title VIII, § 804(b)(1)101 Stat. 1125Pub. L. 101–510, div. A, title VIII, § 803(a)(1)104 Stat. 1589Pub. L. 102–25, title VII, § 701(b)105 Stat. 113Pub. L. 102–190, div. A, title VIII, § 804(a)105 Stat. 1415Pub. L. 103–355, title I108 Stat. 3273Pub. L. 105–85, div. A, title X, § 1073(a)(46)111 Stat. 1902Pub. L. 105–261, div. A, title VIII, § 805(a)112 Stat. 2083Pub. L. 114–328, div. A, title VIII, § 822(1)130 Stat. 2276Pub. L. 115–91, div. A, title VIII, § 811(a)(1)131 Stat. 1459Pub. L. 116–283, div. A, § 814(a)(1)134 Stat. 3479Pub. L. 117–81, div. A, title VIII, § 804(a)135 Stat. 1816Pub. L. 99–500Pub. L. 99–591Pub. L. 99–661Pub. L. 99–591Pub. L. 99–500The text of subsec. (a) of , which was transferred to this section and amended by , was based on , , , 1783–166, and , , , 3341–166; , formerly title IV, § 952(a), , , renumbered title IX, , , ; , , ; , , ; , , ; –(c)(1), , , 1416; , §§ 1201, 1202(b), , , 3274; , , ; , , ; , , ; , , ; , , ; , , . , , and added identical sections. is a corrected version of .

Amendments

Pub. L. 119–60, § 1804(c)(1)(B)2025—Subsec. (a)(1)(A). , substituted “$10,000,000” for “$2,000,000”.

Pub. L. 119–60, § 1804(c)(1)(A), substituted “” for “”.

Pub. L. 119–60, § 1804(c)(1)(C)Subsec. (a)(1)(B). , substituted “$2,000,000” for “$750,000”.

Pub. L. 119–60, § 1804(c)(1)(A), substituted “” for “”.

Pub. L. 119–60, § 1804(c)(2)Subsec. (a)(2). , substituted “$10,000,000” for “$2,000,000”.

Pub. L. 119–60, § 1804(c)(3)Subsec. (a)(3)(A). , substituted “chapter and—” and cls. (i) and (ii) for “chapter and the price of the subcontract is expected to exceed $2,000,000”.

Pub. L. 119–60, § 1701(a)(25)Subsec. (a)(3)(B)(ii). , substituted “offeror” for “offereor”.

Pub. L. 118–1592024—Subsec. (a)(3). designated existing provisions as subpar. (A) and added subpar. (B).

Pub. L. 118–31, § 1801(a)(29)(A)2023—Subsec. (a)(4). , substituted “paragraph (3)” for “subparagraph (C)”.

Pub. L. 118–31, § 1801(a)(29)(B)Subsec. (f). , substituted “paragraphs (1) and (2) of such subsection” for “subparagraphs (B) and (C) of such paragraph”.

Pub. L. 116–283, § 1831(c)(1)section 2306a of this title2021—, (2)(A), transferred subsec. (a) of to this section and redesignated pars. (1) to (7) of such former subsec. (a) as subsecs. (a) to (g), respectively.

Pub. L. 116–283, § 1831(c)(2)(A)Pub. L. 117–81, § 1701(b)(10)(B)section 2306a(a)(1) of this titleSubsec. (a). , (B), (3), as amended by , after redesignation of as subsec. (a) of this section, substituted “When Required” for “Required Cost or Pricing Data and Certification” in heading, redesignated subpars. (A) to (D) as pars. (1) to (4), respectively, and substituted “a prime contract under a chapter 137 legacy provision” for “a prime contract under this chapter” in introductory provisions of pars. (1) and (2).

Pub. L. 116–283, § 1831(c)(2)(C)Subsec. (a)(1). , inserted heading and redesignated cls. (i) and (ii) as subpars. (A) and (B), respectively.

Pub. L. 116–283, § 1831(c)(2)(D)(ii)Pub. L. 117–81, § 1701(b)(10)(C)(i)Subsec. (a)(2). –(v), which directed amendment of par. (2) by redesignating cls. (i) to (iii) as subpars. (A) to (C), respectively, and making further substitutions in text and which could not be executed, was repealed by .

Pub. L. 116–283, § 1831(c)(2)(D)Pub. L. 117–81, § 1701(b)(10)(C)(ii), as amended by , inserted heading.

Pub. L. 117–81, § 1701(c)(3)(A)Subsec. (a)(3). , substituted “under this chapter” for “under this section”.

Pub. L. 116–283, § 1831(c)(2)(E)(ii)Pub. L. 117–81, § 1701(b)(10)(D)(i)–(v), which directed amendment of par. (3) by redesignating cls. (i) to (iii) as subpars. (A) to (C), respectively, and making further substitutions in text and which could not be executed, was repealed by .

Pub. L. 116–283, § 1831(c)(2)(E)Pub. L. 117–81, § 1701(b)(10)(D)(ii), as amended by , (iii), inserted heading.

Pub. L. 116–283, § 1831(c)(2)(F)(ii)Pub. L. 117–81, § 1701(b)(10)(E)(i)Subsec. (a)(4). , (iv), (v), which directed amendment of par. (4) by redesignating cls. (i) and (ii) as subpars. (A) and (B), respectively, and making further substitutions in text and which could not be executed, was repealed by .

Pub. L. 116–283, § 1831(c)(2)(F)(iii)Pub. L. 117–81, § 1701(b)(10)(E)(i), which directed substitution of “paragraph (3)” for “subparagraph (C)” in introductory provisions of par. (4) and which could not be executed as directed but could be executed in text of par. (4), was repealed by .

Pub. L. 116–283, § 1831(c)(2)(F)Pub. L. 117–81, § 1701(b)(10)(E)(ii), as amended by , (iii), inserted heading.

Pub. L. 116–283, § 1831(c)(4)Pub. L. 117–81, § 1701(b)(10)(F)section 2306a(a)(2) of this titlesection 3704 of this titleSubsec. (b). , as amended by , after redesignation of as subsec. (b) of this section, inserted heading and substituted “subsection (a)” for “paragraph (1)” and “” for “subsection (c)”.

Pub. L. 116–283, § 1831(c)(5)section 2306a(a)(3) of this titlesection 3704 of this titleSubsec. (c). , after redesignation of as subsec. (c) of this section, inserted heading, redesignated subpars. (A) and (B) as pars. (1) and (2), respectively, and, in introductory provisions, substituted “subsection (a) (or under )” for “paragraph (1) (or under subsection (c))” and “subsection (b)” for “paragraph (2)”.

Pub. L. 117–81, § 1701(c)(3)(B)Subsec. (d). , substituted “this chapter” for “this section”.

Pub. L. 116–283, § 1831(c)(6)section 2306a(a)(4) of this titlesection 3703 of this title, after redesignation of as subsec. (d) of this section, inserted heading and substituted “” for “subsection (b)”.

Pub. L. 116–283, § 1831(c)(7)section 2306a(a)(5) of this titlesection 3703(a)(3) of this titleSubsec. (e). , after redesignation of as subsec. (e) of this section, inserted heading and substituted “” for “subsection (b)(1)(C)”, “subsection (a)(3)” for “paragraph (1)(C)”, and “that subsection” for “that paragraph”.

Pub. L. 116–283, § 1831(c)(8)(D)Pub. L. 117–81, § 804(a)section 2306a of this titleSubsec. (f). , which directed substitution of “paragraphs (2)(B) and (3)(B) of subsection (a)” for “subparagraphs (B)(ii) and (C)(ii) of paragraph (1)”, could not be executed because the phrase “subparagraphs (B)(ii) and (C)(ii) of paragraph (1)” did not appear after the intervening amendment made by , to subsec. (a)(6) of prior to its transfer to subsec. (f) of this section.

Pub. L. 116–283, § 1831(c)(8)(C)Pub. L. 117–81, § 1701(b)(10)(G), which directed substitution of “that subsection” for “that paragraph” and could not be executed, was repealed by .

Pub. L. 116–283, § 1831(c)(8)(B), substituted “subsection (a)” for “paragraph (1)”.

Pub. L. 116–283, § 1831(c)(8)(A)Pub. L. 117–81, § 804(b), as amended by , inserted heading.

Pub. L. 116–283, § 1831(c)(9)section 2306a(a)(7) of this titleSubsec. (g). , after redesignation of as subsec. (g) of this section, inserted heading and substituted “subsection (a)” for “paragraph (1)”.

Statutory Notes and Related Subsidiaries

Effective Date of 2021 Amendment

Pub. L. 117–81Pub. L. 116–283section 1701(a)(2) of Pub. L. 117–81section 3001 of this titleAmendment by section 1701(b)(10)(B)–(G) of applicable as if included in the enactment of title XVIII of as enacted, see , set out in a note preceding and Effective Date note below.

section 1701(c)(3) of Pub. L. 117–81Pub. L. 116–283section 1701(a)(3) of Pub. L. 117–81section 3001 of this titleAmendment by to take effect immediately after the amendments made by title XVIII of have taken effect, see , set out in a note preceding and Effective Date note below.

Effective Date

Pub. L. 116–283section 1801(d) of Pub. L. 116–283section 3001 of this titleSection and amendment by effective , with additional provisions for delayed implementation and applicability of existing law, see , set out as an Effective Date of 2021 Amendment note preceding .

Data Collection

Pub. L. 117–81, div. A, title VIII, § 862(b)135 Stat. 1852

Pub. L. 114–92“The Secretary of Defense shall develop and implement a plan to collect and analyze data on the use of authority under such section 873 [of , set out below] for the purposes of—
“(1)
developing and sharing best practices; and
“(2)
providing information to the Secretary of Defense and Congress on the use of authority under such section 873 and related policy issues.”
, , , provided that:

Pilot Program for Streamlining Awards for Innovative Technology Projects

Pub. L. 114–92, div. A, title VIII, § 873(a)129 Stat. 939Pub. L. 114–328, div. A, title VIII, § 896130 Stat. 2326Pub. L. 116–283, div. A, title VIII, § 832134 Stat. 3753Pub. L. 117–81, div. A, title VIII, § 862(a)135 Stat. 1852Pub. L. 118–159, div. A, title VIII, § 863138 Stat. 2001

“(a)

Exception From Certified Cost and Pricing Data Requirements .—

section 2306a(a) of title 1010 U.S.C. 3702The requirements under , United States Code [now ], shall not apply to a contract, subcontract, or modification of a contract or subcontract valued at less than $7,500,000 awarded to a small business or nontraditional defense contractor pursuant to—
“(1)
a technical, merit-based selection procedure, such as a broad agency announcement, or
“(2)
section 3501 of title 10 the Small Business Innovation Research Program, a multiyear contract (as defined in , United States Code), a block buy or multi-ship buy authorized by Congress, or the or [sic] Small Business Technology Transfer Program,
unless the head of the agency determines that submission of cost and pricing data should be required based on past performance of the specific small business or nontraditional defense contractor, or based on analysis of other information specific to the award.
“(b)

Exception From Records Examination Requirement .—

section 2313(a)(2) of title 1010 U.S.C. 3841(b)(2)(A)section 2313 of title 1010 U.S.C. 3841(c)The requirements under subparagraphs (A), (B), and (C) of , United States Code [now –(C)], and subsection (b) of , United States Code [now ], shall not apply to a contract valued at less than $7,500,000 awarded to a small business or nontraditional defense contractor pursuant to—
“(1)
a technical, merit-based selection procedure, such as a broad agency announcement, or
“(2)
the Small Business Innovation Research Program,
unless the head of the agency determines that auditing of records should be required based on past performance of the specific small business or nontraditional defense contractor, or based on analysis of other information specific to the award, and if such performance audit is initiated within 18 months of the contract completion.
“(c)

Treatment as Competitive Procedures .—

Use of a technical, merit-based selection procedure or the Small Business Innovation Research Program or Small Business Technology Transfer Program for the pilot program under this section shall be considered to be use of competitive procedures for purposes of [former] chapter 137 of title 10, United States Code.
“(d)

Discretion To Use Non-certified Accounting Systems .—

In executing programs under this pilot program, the Secretary of Defense shall establish procedures under which a small business or nontraditional contractor may engage an independent certified public accountant for the review and certification of its accounting system for the purposes of any audits required by regulation, unless the head of the agency determines that this is not appropriate based on past performance of the specific small business or nontraditional defense contractor, or based on analysis of other information specific to the award.
“(e)

Guidance and Training .—

The Secretary of Defense shall ensure that acquisition and auditing officials are provided guidance and training on the flexible use and tailoring of authorities under the pilot program to maximize efficiency and effectiveness.
“(f)

Sunset .—

The exceptions under subsections (a) and (b) shall terminate on .
“(g)

Definitions .—

section 638 of Title 15In this section [enacting this note and amending , Commerce and Trade]:
“(1)

Small business .—

15 U.S.C. 632The term ‘small business’ has the meaning given the term ‘small business concern’ under section 3 of the Small Business Act ().
“(2)

Nontraditional defense contractor .—

section 2302(9) of title 1010 U.S.C. 3014The term ‘nontraditional defense contractor’ has the meaning given that term in , United States Code [now ].”
–(g), , , 940, as amended by , , ; , , ; , , ; , , , provided that:

Section 896(2)(B) of Pub. L. 114–328section 873 of Pub. L. 114–92[, which directed amendment of par. (2) of subsec. (b) of , set out above, by inserting “, and if such performance audit is initiated within 18 months of the contract completion” before the period at the end, was executed by making the insertion before the period at the end of the concluding provisions of subsec. (b), to reflect the probable intent of Congress.]