Cost or pricing data: which statement is true?

• A. They are purely subjective estimates.
• B. They are factual, not judgmental, and verifiable, and may require certification.
• C. They are required only for cost-reimbursement contracts.
• D. They must be provided after price agreement.

Answer: (B)

Cost or pricing data are the facts used to support proposed prices. They must be factual, not judgmental, and verifiable, reflecting information that can be checked and updated to current conditions. In some cases, these data must be certified under the Truthful Cost or Pricing Data requirements, ensuring the data are truthful, complete, and current. These data are provided during price negotiations to establish a fair and reasonable price, before the final price is agreed upon, and they apply beyond just cost-reimbursement contracts. The other statements miss the essential point: cost or pricing data are not purely subjective estimates, they’re grounded in verifiable facts and may require certification, and they are used in negotiations prior to price agreement.