The definition of cost or pricing data is found in FAR 2.101. FAR states that cost or pricing data means all facts that, as of the date of price agreement, prudent buyers and sellers would reasonably expect to significantly affect price negotiations. Cost or pricing data are factual, not judgmental, and are verifable. While they do not indicate the accuracy of the prospective contractor's judgment about estimated future costs or projections, they do include the data forming the basis for that judgment.
Cost or pricing data are more than historical accounting data; they are all the facts that can be reasonably expected to contribute to the souondness of estimates of future costs and to the validity of determinations of costs already incurred. Thy can include such factors as
- vendor quotations
- nonrecurring costs
- changes in productions methods
- data supporting projections of business prospects
- unit cost trends
- mank/buy decisions
- management decisions that could have a significant bearing on costs.