When certified cost or pricing data are not required, what is the general order of preference to determine data type?

• A. Judgmental information only
• B. No data is required
• C. No additional information, particularly if price is based on adequate price competition; Information other than cost or pricing data; Cost or pricing data
• D. Cost or pricing data; Information other than cost or pricing data; No additional information

Answer: (C)

When cost or pricing data aren’t required, you determine data needed to support price reasonableness using a hierarchy that starts with the least burdensome information. If the price is based on adequate price competition, no additional information is needed—the competitive market itself provides a fair and reasonable price. If competition isn’t adequate, you first look to information other than cost or pricing data, such as catalog prices, market research, published price lists, or supplier quotes, to assess reasonableness. Only if those sources don’t yield a satisfactory basis do you resort to collecting cost or pricing data. This order emphasizes using the simplest, most probative data first and reserving cost or pricing data as a last resort when necessary.