Events

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.

Speakers

Dr. Philip S. AntonChief Scientist, Acquisition Innovation Research Center​
WELCOME
Philip S. Antón
Acquisition Innovation Research Center
Brad-Nathan
PRESENTER
Brad Nathan
Columbia University
Craig-Barrett
PANELIST
Craig Barrett
Crowell & Moring
David Drabkin_sq_2
PANELIST
David Drabkin
Chair, Procurement Roundtable and AIRC Fellow
John-Tenaglia
PANELIST
John Tenaglia
Principal Director, Defense Pricing and Contracting, U.S. Department of Defense
Tara-Ward
PANELIST
Tara Ward
McDermott Will & Emery
Christopher-Yukins
MODERATOR
Christopher Yukins
GW Law and AIRC Fellow

Research Resources

the Truth in Negotiations Act (TINA) statute (now officially called Truthful Cost or Pricing Data (TCPD))

Definition of cost or pricing data.

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

RAND Corporation