The head of contracting activity may waive certified cost or pricing data requirements in exceptional cases.

• A. True
• B. False
• C. Only with agency head approval
• D. Only for commercial items

Answer: (A)

Certified cost or pricing data are normally required for negotiated contracts above the threshold to ensure the price is fair and reasonable. However, there is a built-in exception: in exceptional circumstances, the head of contracting activity (or a designee) may waive the requirement to submit certified cost or pricing data. This waiver is used when insisting on certified data would be unnecessary or overly burdensome, and price can be determined through other reliable means, such as adequate price competition or when purchasing a commercial item. So the statement is correct—the HCA has authority to grant a waiver in exceptional cases, and it isn’t restricted to requiring agency-head approval in every situation.