Subcontracts requiring certified cost or pricing data are those whose value is the lower of either: 1) $13.5 million or more; OR 2) Both more than the pertinent certified cost or pricing data threshold and more than 10 percent of the prime contractor's proposed price, unless the contracting officer believes such submission is unnecessary.

• A. Subcontracts that meet either condition
• B. Subcontracts that meet both conditions
• C. Subcontracts below the thresholds
• D. Subcontracts that are always required regardless of value

Answer: (A)

The key idea is when certified cost or pricing data must be submitted for subcontracts. There are two ways a subcontract triggers TCPD requirements: first, if the subcontract value is at least 13.5 million; second, if the subcontract value is above the pertinent cost or pricing data threshold and also more than 10 percent of the prime contractor’s proposed price (the contracting officer can decide a submission isn’t necessary in some cases). If either of these conditions is met, certified cost or pricing data is required.

So, subcontracts that meet either condition require TCPD. For example, a subcontract of 14 million clearly triggers the first criterion. A subcontract of 3 million wouldn’t trigger the second criterion unless the prime price is low enough that 3 million is more than 10 percent of the prime; otherwise it would not require TCPD. The mechanics above explain why the correct rule is that TCPD is required if either condition is satisfied.

Choices that say it’s only when both conditions are met, or that it’s always required, or that it’s below thresholds, don’t fit the actual rule.