The contractor is required to submit certified cost and pricing data for subcontracts that are...

The contractor is required to submit certified cost and pricing data for subcontracts that are...

• A. When subcontract value is less than $100,000
• B. For any subcontract regardless of value
• C. The lower of either $13,500,000 or valued at more than both the pertinent cost or pricing threshold and more than 10% of the prime contractor's price
• D. Only for subcontracts with foreign vendors

Answer: (C)

The essential idea here is when certified cost and pricing data are required for subcontracts under the Truth in Negotiations Act (TINA). Certified data are needed for subcontracts that are above the cost or pricing data threshold and also exceed 10% of the prime contract price. There’s a ceiling on how this requirement applies to subcontracts, set at 13.5 million dollars. So the rule is that you must obtain certified data for subcontracts that exceed both conditions, but the amount of data required is limited to the lower of 13.5 million or the amount that meets those two conditions. That precise phrasing matches how the threshold, the 10% rule, and the ceiling work together. The other options fail because they would require certified data in cases that don’t meet the threshold, ignore the 10% limit, or ignore the subcontractor’s status (such as foreign vendors), which isn’t how this provision is structured.