Under what condition can cost analysis be used without certified cost or pricing data?

Cost analysis can be used without certified cost or pricing data under specific circumstances, primarily when the contracting officer deems it necessary. While certified cost or pricing data is usually required for cost analysis to ensure a fair and reasonable price, there are situations where it may not be needed.

In particular, the determination of necessity is central to when cost analysis can be conducted. This may occur when data is not available or when the contracting officer has sufficient confidence that they can perform an effective cost analysis based on other information.

The other choices do not accurately reflect the regulations governing cost analysis. The notion that mutual agreement between parties could allow for cost analysis without certification is misaligned, as certified data is typically a regulatory requirement. The stipulation about the contract value over $1 million does not influence the need for certified data directly—it remains applicable regardless of the contract size. Finally, the assertion that price analysis must always be performed is not correct, as cost analysis can be equally valid depending on the circumstances and the discretion provided to contracting officers. Thus, the correct understanding revolves around the discretion exercised by the contracting officer to determine when cost analysis is appropriate.