The head of contracting activity may waive certified cost or pricing data requirements in exceptional cases.

The head of contracting activity may waive certified cost or pricing data requirements in exceptional cases.

• A. True
• B. False
• C. Only with agency head approval
• D. Only for commercial items

Answer: (A)

Certified cost or pricing data are normally required to support negotiated prices under the Truth in Negotiations Act, but there is an established authority to waive that requirement in exceptional cases. The head of contracting activity has the power to determine that certified data are not needed and to waive the requirement when doing so is appropriate, with the rationale documented in the contract file. This waiver helps avoid delays or impractical burdens in unusual circumstances, and it isn’t limited to commercial items nor does it require agency head approval in every situation—the HCA specifically has this waiver authority. Waivers are typically used when the price can be determined fair and reasonable by other means or when the situation meets one of the recognized exceptions (such as adequate price competition, prices set by law or regulation, or other data). That’s why the statement is true.

Certified cost or pricing data are normally required to support negotiated prices under the Truth in Negotiations Act, but there is an established authority to waive that requirement in exceptional cases. The head of contracting activity has the power to determine that certified data are not needed and to waive the requirement when doing so is appropriate, with the rationale documented in the contract file. This waiver helps avoid delays or impractical burdens in unusual circumstances, and it isn’t limited to commercial items nor does it require agency head approval in every situation—the HCA specifically has this waiver authority. Waivers are typically used when the price can be determined fair and reasonable by other means or when the situation meets one of the recognized exceptions (such as adequate price competition, prices set by law or regulation, or other data). That’s why the statement is true.