Truth in Negotiations Act

Truth in Negotiations Act (TINA)
the 87th United States Congress
CitationPub. L. 87–653; 76 Stat. 528
Enacted bythe 87th United States Congress
EnactedSeptember 10, 1962

The Truthful Cost or Pricing Data Act, originally and commonly known as the Truth in Negotiations Act (TINA), is a United States federal law enacted in 1962. The act is designed to ensure that the government and contractors negotiate on equal terms by requiring the disclosure of certified cost or pricing data for certain non-competitive contracts. It provides a statutory mechanism for the government to recover overcharges resulting from defective pricing where data provided by a contractor was inaccurate, incomplete, or non-current.

History

In the late 1950s, GAO audits revealed that defense contractors were frequently overcharging the government in non-competitive, sole-source negotiations due to a "lack of cost transparency".[1] In response, Congressman Carl Vinson sponsored legislation to curb "excessive profiteering" and ensure transparency in the procurement process.[2] President John F. Kennedy signed the act into law on September 10, 1962, as Public Law 87-653.[2]

Originally enacted as the Truth in Negotiations Act, the legislation was officially renamed the Truthful Cost or Pricing Data Act by the 2014 National Defense Authorization Act.[3] Despite the official name change, the acronym TINA remains the most common shorthand used by both the government and the defense industrial base.[4]

Key provisions

Under the act, contractors are required to submit and certify that the cost or pricing data provided to the government is accurate, complete, and current as of the date of the price agreement. These requirements apply to negotiated contracts, subcontracts, and modifications where there is a lack of "adequate price competition".[5]

The mandatory disclosure threshold has been adjusted periodically for inflation under a statutory mandate requiring reviews every five years.[6] Following the 2026 National Defense Authorization Act,[7] the threshold for certification was raised to $10 million for contracts entered after June 30, 2026.[8]

Defective pricing

The act provides the government a statutory right to a downward price adjustment, including interest, if it is discovered that the contractor’s certified data was defective at the time of the agreement.[9] A defective pricing claim does not require the government to prove intent to deceive; it only requires proof that the data was not accurate, complete, or current, and that the government relied on that data to its financial detriment.[10]

Certification and disclosure

A certificate of current cost or pricing data is a signed statement from a bidder stating that, to the best of the bidder's knowledge and belief, the costs or pricing data which they have submitted in a tender are accurate, complete and current at the time.

TINA requires that contractors submitting bids should supply certified cost or pricing data before an agreement on price for most negotiated procurements for government contracts worth more than $750,000 for prime contracts awarded before July 1, 2018, and $2 million for prime contracts awarded on or after July 1, 2018.[11] Initially, TINA only applied to the Department of Defense, the Coast Guard, and NASA.

A form for a certificate of current cost or pricing data submission is available in the Federal Acquisition Regulation (FAR) at section 15.406-2.[12]

Scope

The requirement for a certificate of cost or pricing data may also apply to sub-contractors at any tier in the supply chain.[11][13]

Certified cost or pricing data may not be obtained for acquisitions at or below the simplified acquisition threshold.[14] Other exceptions are stated in FAR 15.403-1(b) or may be adopted under a waiver requested by the contracting officer in exceptional circumstances. If certified cost or pricing data has been requested by the Government and submitted by an offeror, but an exception is later found to apply, the data should not be considered to be "certified".[12]

Exemptions

There are several statutory exceptions to the requirement for certified cost or pricing data, including:[15]

  • Prices based on adequate price competition.
  • Prices set by law or regulation.
  • Acquisitions of "commercial products" or "commercial services".
  • Waivers granted by the head of the procuring activity in exceptional circumstances.

See also

References

  1. ^ Review of the Pricing of Negotiated Contracts (PDF) (Report). U.S. General Accounting Office. 1959.
  2. ^ a b Nash, Ralph (2021). The Government Contracts Reference Book (5th ed.). Wolters Kluwer. pp. 472–474, 510. ISBN 978-1454897309.
  3. ^ "Public Law 113-66 - National Defense Authorization Act for Fiscal Year 2014". U.S. Government Publishing Office. Section 811. Retrieved March 25, 2026.
  4. ^ "Truth in Negotiations Act (TINA)". Defense Acquisition University. Retrieved March 25, 2026.
  5. ^ "Truth in Negotiations Act (TINA)". Defense Acquisition University. Retrieved March 25, 2026.
  6. ^ "41 U.S. Code § 1908 - Inflation adjustment of statutory acquisition-related dollar thresholds". Legal Information Institute. Retrieved March 25, 2026.
  7. ^ "Public Law 119-60 - National Defense Authorization Act for Fiscal Year 2026". U.S. Congress. December 18, 2025. Section 1804. Retrieved March 25, 2026.
  8. ^ "Federal Acquisition Regulation; Threshold for Certified Cost or Pricing Data". Acquisition.gov. Retrieved March 25, 2026.
  9. ^ "Defective Pricing: Understanding the Basics". National Contract Management Association. Retrieved March 25, 2026.
  10. ^ Lockheed Martin Corp. v. United States, 70 Fed. Cl. 745 (2006).
  11. ^ a b FAR 15.403-4(a)(ii) Requiring certified cost or pricing data, accessed 11 July 2021
  12. ^ a b FAR 15.406-2 Certificate of Current Cost or Pricing Data, accessed 11 July 2021
  13. ^ "48 CFR § 15.406-2 - Certificate of current cost or pricing data". LII / Legal Information Institute. Retrieved 2022-01-07.
  14. ^ FAR 15.403-1, accessed 11 July 2021
  15. ^ "FAR 15.403-1: Prohibition on obtaining certified cost or pricing data". Acquisition.gov. Retrieved March 25, 2026.
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