10 U.S.C. § 3702: Required cost or pricing data and certification

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 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. 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. 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 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 1 So in original. such offeror is a nontraditional defense contractor (as defined in section 3014 of this title ); the prices to be submitted are prices that were paid for the same goods and services as such covered goods and services; and the price of such subcontract is not expected to exceed $5,000,000. 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. 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. 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. 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. 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 in the case of a submission by a subcontractor (or an offeror for a subcontract), to the prime contractor. 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. 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. 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. 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 . developing and sharing best practices; and providing information to the Secretary of Defense and Congress on the use of authority under such section 873 and related policy issues.” a technical, merit-based selection procedure, such as a broad agency announcement, or the Small Business Innovation Research Program, a multiyear contract (as defined in section 3501 of title 10 , United States Code), a block buy or multi-ship buy authorized by Congress, or the or [sic] Small Business Technology Transfer Program, a technical, merit-based selection procedure, such as a broad agency announcement, or the Small Business Innovation Research Program, 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. 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. 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. The exceptions under subsections (a) and (b) shall terminate on October 1, 2029 . The term ‘small business’ has the meaning given the term ‘small business concern’ under section 3 of the Small Business Act ( 15 U.S.C. 632 ). The term ‘nontraditional defense contractor’ has the meaning given that term in section 2302(9) of title 10 , United States Code [now 10 U.S.C. 3014 ].”