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LegalText 41 U.S.C. § 3501 General us united_states_code code_section 41 PUBLIC CONTRACTS 35 TRUTHFUL COST OR PRICING DATA 3501 41 U.S.C. § 3501 current 119-100 2026-06-26 official https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc41@119-100.zip /us/usc/t41/s3501 data/legal/raw/us/code/title-41/usc41.xml d0f576699dc06f0589b12c22e74d2faf4e23bcb265ed38f97fa690d0731031a2 0977ff7e7fefd99bbd25a86e009a9e4c2707301ec8c49233d17b6604e38702e3 4cc2afb87d767c0c4bd537e38fb83c7acd6605ede7152479f87bb996afab9bc5 2026-07-04 official
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41 U.S.C. § 3501 - General

Text

(a) Definitions.— In this chapter:

(1) Cost or pricing data.— The term “cost or pricing data” means all facts that, as of the date of agreement on the price of a contract (or the price of a contract modification) or, if applicable consistent with section 3506(a)(2) of this title, another date agreed upon between the parties, a prudent buyer or seller would reasonably expect to affect price negotiations significantly. The term does not include information that is judgmental, but does include factual information from which a judgment was derived.

(2) Subcontract.— The term “subcontract” includes a transfer of commercial products or commercial services between divisions, subsidiaries, or affiliates of a contractor or a subcontractor.

(b) Regulations.— (1) Minimizing abuse of commercial services authority.— The Federal Acquisition Regulation shall ensure that services that are not offered and sold competitively in substantial quantities in the commercial marketplace, but are of a type offered and sold competitively in substantial quantities in the commercial marketplace, may be treated as commercial services for purposes of this chapter only if the contracting officer determines in writing that the offeror has submitted sufficient information to evaluate, through price analysis, the reasonableness of the price for the services.

(2) Information to submit.— To the extent necessary to make a determination under paragraph (1), the contracting officer may request the offeror to submit—

(A) prices paid for the same or similar commercial services under comparable terms and conditions by both government and commercial customers; and

(B) if the contracting officer determines that the information described in subparagraph (A) is not sufficient to determine the reasonableness of price, other relevant information regarding the basis for price or cost, including information on labor costs, material costs, and overhead rates.

(Pub. L. 111350, § 3, Jan. 4, 2011, 124 Stat. 3764; Pub. L. 115232, div. A, title VIII, § 836(b)(11), Aug. 13, 2018, 132 Stat. 1863.)

Notes

Historical and Revision Notes RevisedSectionSource (U.S. Code)Source (Statutes at Large) 3501(a)41:254b(h).June 30, 1949, ch. 288, title III, § 304A(h), formerly § 304A(i), as added Pub. L. 103355, title I, § 1251(a)(2), Oct. 13, 1994, 108 Stat. 3284; redesignated as § 304A(h), Pub. L. 104106, title XLII, § 4201(b)(2)(B), Feb. 10, 1996, 110 Stat. 652. 3501(b)41:254b note.Pub. L. 110417, [div. A], title VIII, § 868, Oct. 14, 2008, 122 Stat. 4552. Subsection (a) of Pub. L. 110417, § 868 is omitted as unnecessary. In subsection (b)(1), the words “The Federal Acquisition Regulation” are substituted for “The regulations modified pursuant to subsection (a)” for clarity and conformity with the revised title.

Editorial Notes

Amendments2018—Subsec. (a). Pub. L. 115232, § 836(b)(11)(A), redesignated pars. (2) and (3) as (1) and (2), respectively, substituted “commercial products or commercial services” for “commercial items” in par. (2), as redesignated, and struck out former par. (1), which defined “commercial item”. Subsec. (b)(1). Pub. L. 115232, § 836(b)(11)(B), in heading, struck out “item” before “authority” and, in text, substituted “commercial services” for “commercial items”. Subsec. (b)(2)(A). Pub. L. 115232, § 836(b)(11)(B)(ii), substituted “commercial services” for “commercial items”.

Statutory Notes and Related Subsidiaries

Effective Date of 2018 AmendmentAmendment by Pub. L. 115232 effective Jan. 1, 2020, subject to a savings provision, see section 836(h) of Pub. L. 115232, set out as an Effective Date of 2018 Amendment; Savings Provision note under section 453b of Title 6, Domestic Security.