Which are exceptions to cost and pricing data requirements?

• A. When prices set by law/regulation
• B. For items meeting the commercial item definition
• C. When prices are based on adequate price competition
• D. All of the above

Answer: (D)

In negotiated acquisitions, cost or pricing data are normally required to establish price reasonableness, but there are specific exceptions that allow you to proceed without submitting those data. One exception is when prices are set by law or regulation—the price is fixed by external rules, so there’s no basis for negotiating or needing cost data. Another exception covers commercial items; when the item being procured is commercial, the government relies on market-based pricing and does not require the contractor to provide cost or pricing data. A third exception occurs when there is adequate price competition; if two or more responsible bidders offer prices and the competition is sufficient to determine reasonableness, cost or pricing data are not necessary.

Because each of these situations represents a valid exemption, all of the above are exceptions to cost and pricing data requirements.