Difference between revisions of "Category:Truth In Negotiations Act (TINA)"
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'''TINA is a disclosure rule. It is not a rule that prohibits excessive or windfall profits''', which is a common misconception. The rule is very simple, it requires a contractor to disclose current, complete and accurate data with which to place the government on an equal footing. It gives the Government access to the same factual information that the contractor has. It avoids excessive contract costs that result from a contractor withholding relevant facts that affect price negotiations. | '''TINA is a disclosure rule. It is not a rule that prohibits excessive or windfall profits''', which is a common misconception. The rule is very simple, it requires a contractor to disclose current, complete and accurate data with which to place the government on an equal footing. It gives the Government access to the same factual information that the contractor has. It avoids excessive contract costs that result from a contractor withholding relevant facts that affect price negotiations. | ||
| − | Excessive profits, or what we will call "additional" profits | + | |
| + | '''Excessive profits, or what we will call "additional" profits''' are perfectly acceptable, as long as they were events or facts, that were not known by the contractor during the proposal and negotiation phase. | ||
Revision as of 20:03, 4 December 2019
TINA is a disclosure rule. It is not a rule that prohibits excessive or windfall profits, which is a common misconception. The rule is very simple, it requires a contractor to disclose current, complete and accurate data with which to place the government on an equal footing. It gives the Government access to the same factual information that the contractor has. It avoids excessive contract costs that result from a contractor withholding relevant facts that affect price negotiations.
Excessive profits, or what we will call "additional" profits are perfectly acceptable, as long as they were events or facts, that were not known by the contractor during the proposal and negotiation phase.
TINA is a Disclosure Statue nothing more, nothing less.
TINA is only applicable when certified cost or pricing data is required. It does not apply to commercial procurement's or commercial procurement's (FAR 12).
If Defective Pricing has occurred or asserted, the Government is responsible for proving Defective Pricing.The Government must assert a claim.
They must prove 5 elements which are:
1. Cost or Pricing Data, the data at issue is Cost or Pricing Data.
2. Reasonable Availability, The data was reasonably available to the contractor prior to the agreement on price. The contractor knew or should have known that there was available data which would have affected price negotiations.
3. Non-Disclosure, and No Government Knowledge. The contractor failed to submit current, complete and accurate data, and lacked knowledge that the data was not current, complete, and accurate.
4. Government Reliance. The Government detrimentally relied on the defective cost or pricing data. Whenever the Government requires submission of cost or pricing data, the regulations mandate that the Government perform cost analysis[1]. If the Government or Prime Contractor fails to review the cost or pricing data, any subsequent defective pricing may fail due to lack of reliance.
5. Causation. The Government's reliance on the defective cost or pricing data caused an increase in the contract price.
If the Government is able to prove these 5 elements, it's claim may still fail due to offsets.
References
- ↑ 1. FAR 15.404-1(a)(3). "Cost Analysis shall be used to evaluate the reasonableness of individual cost estimates when certified cost or pricing data are required." In other words, there is a duty for the Government, or Prime Contractor to review the cost or pricing data.
Pages in category "Truth In Negotiations Act (TINA)"
The following 24 pages are in this category, out of 24 total.
