What is the maximum threshold for requiring cost or pricing data for modifications to commercial contracts?

When it comes to modifications of commercial contracts and the requirement for cost or pricing data, the established threshold is $750,000. In circumstances where the estimated price of the modification exceeds this amount, the contracting officer must obtain cost or pricing data. This requirement is crucial to ensure that the government is receiving fair and reasonable pricing and is not overpaying for the modifications.

The importance of this threshold lies in the regulatory framework established by the Federal Acquisition Regulation (FAR). It sets a clear limit to determine when additional scrutiny is necessary in the form of cost or pricing data, facilitating better oversight and accountability in government contracts.

Thus, the correct threshold for requiring cost or pricing data for modifications to commercial contracts is indeed $750,000.