41 USC § 3503 - Exceptions

---
identifier: "/us/usc/t41/s3503"
source: "usc"
legal_status: "official_legal_evidence"
title: "41 USC § 3503 - Exceptions"
title_number: 41
title_name: "PUBLIC CONTRACTS"
section_number: "3503"
section_name: "Exceptions"
chapter_number: 35
chapter_name: "TRUTHFUL COST OR PRICING DATA"
positive_law: true
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3766; Pub. L. 115–232, div. A, title VIII, § 836(b)(12), Aug. 13, 2018, 132 Stat. 1863.)"
---


# § 3503. Exceptions

**(a)** **In General.—** Submission of certified cost or pricing data shall not be required under section 3502 of this title in the case of a contract, a subcontract, or a modification of a contract or subcontract—

**(1)** for which the price agreed on is based on—

**(A)** adequate price competition; or

**(B)** prices set by law or regulation;

**(2)** for the acquisition of a commercial product or a commercial service; or

**(3)** in an exceptional case when the head of the procuring activity, without delegation, determines that the requirements of this chapter may be waived and justifies in writing the reasons for the determination.

**(b)** **Modifications of Contracts and Subcontracts for Commercial Products or Commercial Services.—** In the case of a modification of a contract or subcontract for a commercial product or a commercial service that is not covered by the exception to the submission of certified cost or pricing data in paragraph (1) or (2) of subsection (a), submission of certified cost or pricing data shall not be required under section 3502 of this title if—

**(1)** the contract or subcontract being modified is a contract or subcontract for which submission of certified cost or pricing data may not be required by reason of paragraph (1) or (2) of subsection (a); and

**(2)** the modification would not change the contract or subcontract from a contract or subcontract for the acquisition of a commercial product or a commercial service to a contract or subcontract for the acquisition of an item other than a commercial product or a commercial service.

---

**Source Credit**: (Pub. L. 111–350, § 3, Jan. 4, 2011, 124 Stat. 3766; Pub. L. 115–232, div. A, title VIII, § 836(b)(12), Aug. 13, 2018, 132 Stat. 1863.)

| RevisedSection | Source (U.S. Code) | Source (Statutes at Large) |
| --- | --- | --- |
| 3503 | 41:254b(b). | June 30, 1949, ch. 288, title III, § 304A(b), as added Pub. L. 103–355, title I, § 1251(a)(2), Oct. 13, 1994, 108 Stat. 3279; Pub. L. 104–106, title XLII, § 4201(b)(1), Feb. 10, 1996, 110 Stat. 651. |

In subsection (b)(2), the words “as the case may be” are omitted as unnecessary.

## Editorial Notes

### Amendments

2018—Subsec. (a)(2). , substituted “a commercial product or a commercial service” for “a commercial item”.

Subsec. (b). , in heading, substituted “Commercial Products or Commercial Services” for “Commercial Items” and, in text, substituted “a commercial product or a commercial service” for “a commercial item” wherever appearing.

## Statutory Notes and Related Subsidiaries

### Effective Date of 2018 Amendment

Amendment by  effective , subject to a savings provision, see , set out as an Effective Date of 2018 Amendment; Savings Provision note under , Domestic Security.