Do Cost or Pricing Requirements Improve Contract Outcomes?
Wednesday, January 11, 2023
9:00 AM ET, 15:00 CET
How do requirements for contractors to disclose cost or pricing data to the federal government affect the bidding and execution performance of public procurement contracts? Examining the Truth in Negotiations Act (TINA), which can require contractors to provide cost or pricing data with their bids, a research paper by Brad Nathan, an accounting professor at Columbia Business School, studies the effects of these requirements on contract competition (i.e., whether multiple bids are received), how frequently cost-plus contracts are awarded, and contract performance (i.e., re-negotiations and cost overruns). This one-hour webinar hosted by AIRC and the George Washington University (GW) Law School’s Government Procurement Law Program explores potential benefits and disadvantages of requiring cost or pricing data in public procurement.
Philip S. Antón
Acquisition Innovation Research Center
Crowell & Moring
Chair, Procurement Roundtable and AIRC Fellow
Principal Director, Defense Pricing and Contracting, U.S. Department of Defense
McDermott Will & Emery
GW Law and AIRC Fellow
the Truth in Negotiations Act (TINA) statute (now officially called Truthful Cost or Pricing Data (TCPD))
Pricing policy – contracting officers are directed to request the minimum data necessary to establish prices are reasonable in order to lessen preparation costs, award times, and government resources expended
when requiring certified cost or pricing data is prohibited. Introduces the TINA threshold; FAR 15.403-1(c) defines “adequate competition”
Affords contracting officers the authority to request cost or pricing data (uncertified) when necessary to ensure reasonable prices. This is distinct from rules governing certified cost or pricing data.
Requiring certified cost or pricing data (implementing 10 U.S.C. 2306a and 41 U.S.C. Chapter 35)
Lorell, M. A., J. C. Graser, and C. R. Cook (2005). Price-Based Acquisition: Issues and Challenges for Defense Department Procurement of Weapon Systems. Santa Monica, CA