2-34.13 Cost or Pricing Data

Cost or pricing data include all the facts affecting cost estimates and costs incurred that can be expected to significantly affect price negotiations. Cost or pricing data may also include:

• Supplier quotations.
• Nonrecurring costs.
• Information on changes in production methods and in production or purchasing volume.
• Data supporting business projections, objectives, and related operating costs.
• Unit-cost trends, such as those associated with labor efficiency.
• Make vs. buy decisions.
• Resource estimates to meet business goals.
• Information on management decisions that could have a significant bearing on costs.
• Historical costs for the same or similar items.

Whenever price analysis is insufficient to determine reasonableness of price, cost or pricing data must be obtained before awarding a noncompetitive contract or modification. Only the data needed to make the determination should be obtained. Before agreeing on price, the CO must have the supplier update the data to the latest dates for which data are reasonably available.

The CO must have suppliers obtain cost or pricing data for proposed subcontracts or subcontract modifications when needed to determine the reasonableness of a proposed contract or subcontract price (including negotiated final pricing actions such as termination settlements and total final price agreements for fixed-price incentive contracts). The supplier is responsible for conducting the price or cost analysis for subcontracts and including the results as part of its cost or pricing data. In unusual circumstances, to ensure that analysis is adequate, the CO may require the supplier to submit the subcontract data along with its own data. This does not reduce the supplier’s responsibility to do the subcontract cost or price analysis and negotiate fair and reasonable subcontract prices.

If cost or pricing data are needed and the supplier refuses to provide the necessary data despite repeated requests, the CO must withhold award or modification and refer the matter to the next higher level of contracting authority. The ultimate disposition must be documented.

Under Clause 2-30: Allowable Cost and Payment, suppliers must submit a final indirect-cost rate proposal to the CO or contracting officer’s representative (COR) reflecting ACs during the period, together with cost or pricing data.

Whenever cost or pricing data may be required when negotiating a contract or the subsequent modification of a contract, the contract must include:

• Clause 5-1: Price Reduction for Defective Cost or Pricing Data — lists the conditions under which the negotiated price that was increased significantly can be reduced.
• Clause 5-2: Subcontractor Cost or Pricing Data — requires that before awarding any subcontract or pricing any subcontract modification, the supplier must require the subcontractor to submit cost or pricing data whenever cost or pricing data are required.