Certified Professional Contract Manager (CPCM) 2026 – 400 Free Practice Questions to Pass the Exam

Certified cost or pricing data is critical before a contract award because it serves to validate the accuracy and completeness of the pricing information submitted by the contractor. This validation ensures that the costs associated with the contract are justified and based on reliable data, which is essential for determining a fair and reasonable price. When the data is certified, it provides assurance to the contracting entity that the pricing reflects actual costs and not inflated estimates. This is especially important in government contracting or other regulated environments where adherence to strict cost standards is mandatory.

Having accurate and complete pricing data helps prevent issues that could arise during contract performance, such as disputes over costs or adjustments due to unanticipated expenses. Without this assurance, there is a higher risk that the awarded contract may lead to cost overruns or financial difficulties later in the project lifecycle.

While ensuring competitive bidding, establishing a legal framework for contract enforcement, and minimizing project scope changes are all important elements of contract management, they do not directly address the necessity of having verified cost data prior to contract award. The main focus of certified cost or pricing data is primarily on ensuring the integrity of the pricing itself.