Contractor Cost Data Reporting (X12 196) is used to submit detailed cost and pricing information for work performed under contracts. Contractors send this transaction set to government agencies, prime contractors, or other organizations requesting cost documentation. The transmission typically occurs in response to a request for cost data or as part of contractual reporting requirements. Key segments include the BCM (Beginning Segment for Contractor Cost Data Reporting), which initiates the report and establishes its purpose; the HL (Hierarchical Level) segment, which structures cost data in a multi-level format to organize expenses by contract, task, or work breakdown structure; and the AMT (Monetary Amount) segment, which captures the actual cost figures being reported.

Consider ABC Construction Company submitting a 196 transaction to the Department of Transportation to report costs on a highway resurfacing project. The contractor uses the N1 loop to identify itself and the contracting agency, includes project dates via DTP segments, and organizes cost data through multiple HL hierarchical levels—one for the overall project, another for major work phases, and a third for specific line items. Within each hierarchical level, the contractor uses CLI (Cost Line Item) and AMT segments to detail labor, materials, and overhead costs, with QTY segments showing units and REF segments linking data to specific contract line items or change orders. Supporting documentation references and explanatory notes are captured in MSG (Message Text) segments, enabling the contractor to provide complete justification for reported costs.