124 STAT. 3769 PUBLIC LAW 111–350—JAN. 4, 2011 the character of the data to the attention of the contracting officer; (3) the contract was based on an agreement between the contractor and the Federal Government about the total cost of the contract and there was no agreement about the cost of each item procured under the contract; or (4) the prime contractor or subcontractor did not submit a certification of cost or pricing data relating to the contract as required by section 3502(b) of this title. (d) OFFSETS.— (1) WHEN ALLOWED.—A contractor shall be allowed to offset an amount against the amount of a contract price adjustment under a contract provision required by subsection (a) if— (A) the contractor certifies to the contracting officer (or to a designated representative of the contracting officer) that, to the best of the contractor’s knowledge and belief, the contractor is entitled to the offset; and (B) the contractor proves that the cost or pricing data were available before the date of agreement on the price of the contract (or price of the modification), or, if applicable, consistent with subsection (a)(2), another date agreed on by the parties, and that the data were not submitted as specified in section 3502(c) of this title before that date. (2) WHEN NOT ALLOWED.—A contractor shall not be allowed to offset an amount otherwise authorized to be offset under paragraph (1) if— (A) the certification under section 3502(b) of this title with respect to the cost or pricing data involved was known to be false when signed; or (B) the Federal Government proves that, had the cost or pricing data referred to in paragraph (1)(B) been sub- mitted to the Federal Government before date of agreement on the price of the contract (or price of the modification), or, if applicable, under subsection (a)(2), another date agreed on by the parties, the submission of the cost or pricing data would not have resulted in an increase in that price in the amount to be offset. § 3507. Interest and penalties for certain overpayments (a) IN GENERAL.—If the Federal Government makes an overpay- ment to a contractor under a contract with an executive agency subject to this chapter and the overpayment was due to the submis- sion by the contractor of defective cost or pricing data, the contractor shall be liable to the Federal Government— (1) for interest on the amount of the overpayment, to be computed— (A) for the period beginning on the date the overpayment was made to the contractor and ending on the date the contractor repays the amount of the overpayment to the Federal Government; and (B) at the current rate prescribed by the Secretary of the Treasury under section 6621 of the Internal Revenue Code of 1986 (26 U.S.C. 6621); and (2) if the submission of the defective data was a knowing submission, for an additional amount equal to the amount of the overpayment.
