When is cost or pricing data typically required?

Cost or pricing data is typically required for contract actions exceeding a threshold set by regulation, which is $700,000 unless exceptions apply. This requirement is rooted in ensuring the government has sufficient information to assess the reasonableness of proposed costs and to negotiate effectively.

Under the Federal Acquisition Regulation (FAR), specifically FAR Part 15, contractors are required to provide cost or pricing data to promote fair and reasonable pricing for the government. The threshold of $700,000 was established to strike a balance between ensuring adequate oversight on larger contracts while not placing undue burdens on smaller contracts where costs are typically more predictable.

In contrast, the other options do not align with the regulatory requirements. The requirement is not for all contracts regardless of value, as there are specific thresholds that apply, nor is it limited to commercial transactions only or applicable solely for fixed-price contracts. Each contract type and transaction category is treated differently under federal acquisition policy, requiring careful consideration of the specific circumstances.