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Title 41, Public ContractsRelease 119-110

§3503 Exceptions

Title 41 › Subtitle I — Federal Procurement Policy › CHAPTER 35 — TRUTHFUL COST OR PRICING DATA › § 3503

Last updated Sep 22, 2026|Official source

Summary

Agencies do not have to ask for certified cost or pricing data in certain cases. They can skip it when the price comes from real competition, when the price is set by law or a rule, when they are buying a commercial product or service, or when the agency leader personally waives the rule and explains why in writing. If a contract for a commercial product or service is later changed, the agency still does not need that data as long as the original contract was exempt and the change does not turn the deal into a non‑commercial purchase.

Full Legal Text

Title 41, §3503

Public Contracts, Source: USLM XML via OLRC

(a)In General.—
Submission of certified cost or pricing data shall not be required under section 3502 of this title in the case of a contract, a subcontract, or a modification of a contract or subcontract—
(1)for which the price agreed on is based on—
(A)adequate price competition; or
(B)prices set by law or regulation;
(2)for the acquisition of a commercial product or a commercial service; or
(3)in an exceptional case when the head of the procuring activity, without delegation, determines that the requirements of this chapter may be waived and justifies in writing the reasons for the determination.
(b)Modifications of Contracts and Subcontracts for Commercial Products or Commercial Services.—
In the case of a modification of a contract or subcontract for a commercial product or a commercial service that is not covered by the exception to the submission of certified cost or pricing data in paragraph (1) or (2) of subsection (a), submission of certified cost or pricing data shall not be required under section 3502 of this title if—
(1)the contract or subcontract being modified is a contract or subcontract for which submission of certified cost or pricing data may not be required by reason of paragraph (1) or (2) of subsection (a); and
(2)the modification would not change the contract or subcontract from a contract or subcontract for the acquisition of a commercial product or a commercial service to a contract or subcontract for the acquisition of an item other than a commercial product or a commercial service.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 350341:254b(b).June 30, 1949, ch. 288, title III, § 304A(b), as added Pub. L. 103–355, title I, § 1251(a)(2), Oct. 13, 1994, 108 Stat. 3279; Pub. L. 104–106, title XLII, § 4201(b)(1), Feb. 10, 1996, 110 Stat. 651. In subsection (b)(2), the words “as the case may be” are omitted as unnecessary.

Editorial Notes

Amendments

2018—Subsec. (a)(2). Pub. L. 115–232, § 836(b)(12)(A), substituted “a commercial product or a commercial service” for “a commercial item”. Subsec. (b). Pub. L. 115–232, § 836(b)(12)(B), in heading, substituted “Commercial Products or Commercial Services” for “Commercial Items” and, in text, substituted “a commercial product or a commercial service” for “a commercial item” wherever appearing.

Statutory Notes and Related Subsidiaries

Effective Date

of 2018 AmendmentAmendment by Pub. L. 115–232 effective Jan. 1, 2020, subject to a

Savings Provision

, see section 836(h) of Pub. L. 115–232, set out as an

Effective Date

of 2018 Amendment;

Savings Provision

note under section 453b of Title 6, Domestic Security.

Reference

Citations & Metadata

Citation

41 U.S.C. § 3503

Title 41, Public Contracts

Last Updated

Sep 22, 2026

Release point: 119-110