Page:United States Statutes at Large Volume 100 Part 4.djvu/772

 100 STAT. 3341-167

PUBLIC LAW 99-591—OCT. 30, 1986

been required to make available cost or pricing data under this section. "(b) EXCEPTIONS —This section need not be applied to a contract or subcontract— "(1) for which the price agreed upon is based on— ,A. "(A) adequate price competition; "(B) established catalog or market prices of commercial items sold in substantial quantities to the general public; or "(C) prices set by law or regulation; or "(2) in an exceptional case when the head of the agency determines that the requirements of this section may be waived and states in writing his reasons for such determination. "(c) AUTHORITY To REQUIRE COST OR PRICING DATA.—When cost or pricing data are not required to be submitted by subsection (a), such data may nevertheless be required to be submitted by the head of the agency if the head of the agency determines that such data are necessary for the evaluation by the agency of the reasonableness of the price of the contract or subcontract. "(d) PRICE REDUCTIONS FOR DEFECTIVE COST OR PRICING DATA.—

(1)(A) A prime contract (or change or modification to a prime contract) under which a certificate under subsection (a)(2) is required shall contain a provision that the price of the contract to the United States, including profit or fee, shall be adjusted to exclude any significant amount by which it may be determined by the head of the agency that such price was increased because the contractor (or any subcontractor required to make available such a certificate) submitted defective cost or pricing data. "(B) For the purposes of this section, defective cost or pricing data are cost or pricing data which, as of the date of agreement on the price of the contract (or another date agreed upon between the parties), were inaccurate, incomplete, or noncurrent. If for purposes of the preceding sentence the parties agree upon a date other than the date of agreement on the price of the contract, the date agreed upon by the parties shall be as close to the date of agreement on the price of the contract as is practicable. "(2) In determining for purposes of a contract price adjustment under a contract provision required by paragraph (1) whether, and to what extent, a contract price was increased because the contractor (or a subcontractor) submitted defective cost or pricing data, it shall be a defense that the United States did not rely on the defective data submitted by the contractor or subcontractor, "(3) It is not a defense to an adjustment of the price of a contract under a contract provision required by paragraph (1) that— "(A) the price of the contract would not have been modified even if accurate, complete, and current cost or pricing data had been submitted by the contractor or subcontractor because the contractor or subcontractor— "(i) was the sole source of the property or services procured; or "(ii) otherwise was in a superior bargaining position with respect to the property or services procured; "(B) the contracting officer should have known that the cost and pricing data in issue were defective even though the contractor or subcontractor took no affirmative action to bring the character of the data to the attention of the contracting officer; "(C) the contract was based on an agreement between the contractor and the United States about the total cost of the

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