The contractor is required to submit certified cost and pricing data for subcontracts that are...

• A. When subcontract value is less than $100,000
• B. For any subcontract regardless of value
• C. The lower of either $13,500,000 or valued at more than both the pertinent cost or pricing threshold and more than 10% of the prime contractor's price
• D. Only for subcontracts with foreign vendors

Answer: (C)

Certified cost and pricing data are required for subcontract negotiations when two conditions are met: the subcontract value must be above the cost or pricing data threshold, and it must also be greater than 10% of the prime contract price. In practice, the data requirement is limited by a cap: you apply it only up to the lower of two amounts—the cap of 13.5 million dollars or 10% of the prime contract price.

So, if the prime contract is 50 million, 10% of that is 5 million; the threshold becomes the lower of 13.5 million and 5 million, which is 5 million. Subcontracts above 5 million (and above the cost/pricing threshold) would require certified data. If the prime contract is 200 million, 10% is 20 million; the lower amount is 13.5 million, so subcontracts above 13.5 million (and above the cost/pricing threshold) would require certified data. This setup targets rigorous data for larger or higher-value subcontracts while avoiding unnecessary burden on smaller ones.