EXCEPTIONS TO COST OR PRICING DATA REQUIREMENTS.

SEC. 1202. EXCEPTIONS TO COST OR PRICING DATA REQUIREMENTS. (a) Exceptions Stated.— Subsection (b) of section 2306a of title 10, United States Code, is amended to read as follows: “(b) Exceptions.— “(1) In general.— Submission of cost or pricing data shall not be required under subsection (a) in the case of a contract, a subcontract, or modification of a contract or subcontract— “(A) for which the price agreed upon is based on— “(i) adequate price competition; “(ii) established catalog or market prices of commercial items that are sold in substantial quantities to the general public; or “(iii) prices set by law or regulation; or “(B) in an exceptional case when the head of the procuring activity, without delegation, determines that the requirements of this section may be waived and justifies in writing the reasons for such determination. “(2) Modifications of contracts and subcontracts for commercial items.— In the case of a modification of a contract or subcontract for a commercial item that is not covered by the prohibition on the submission of cost or pricing data in paragraph (1)(A), submission of cost or pricing data shall not be required under subsection (a) if— “(A) the contract or subcontract being modified is a contract or subcontract for which submission of cost or pricing data may not be required by reason of paragraph (1)(A); and “(B) the modification would not change the contract or subcontract, as the case may be, from a contract or subcontract for the acquisition of a commercial item to a contract or subcontract for the acquisition of an item other than a commercial item.”. “(3) FAR standards.— The Federal Acquisition Regulation shall provide clear standards for determining whether the exceptions provided in paragraph (1)(A) apply- In the case of the exception provided in paragraph (1)(A)(i), the regulations shall specify the criteria to be used to determine whether adequate price competition exists. In the case of the exception provided in paragraph (1)(A)(ii), the regulations shall provide that the exception applies to items that are sold in substantial quantities to the general public, without regard to the quantity of items that may be sold to the Federal Government.”. (b) Conforming Amendment to Reference.— Subsection (a)(5) of such section is amended by striking out “subsection (b)(2)” and inserting in lieu thereof “subsection (b)(1)(B)”.