Truth in Negotiations Act (TINA)

Definition

The Truth in Negotiations Act (TINA, now statutorily renamed 'Truthful Cost or Pricing Data' though the original name is still universal) requires contractors to submit certified cost or pricing data for negotiated contracts above a statutory threshold ($2M as of 2024) when no exception applies. Exceptions include adequate price competition, commercial items, and prices set by law or regulation. If a contractor fails to disclose current, accurate, and complete cost data, the government can recover 'defective pricing' amounts plus interest and penalties. DCAA audits certified cost data closely.

Why It Matters

TINA applies to much more contracting than many firms realize, especially on sole-source IDIQ task orders and large modifications. A defective-pricing finding years after award can drain millions from the contractor. Robust pricing submission processes — dated support, current cost-element documentation, and proper certifications — are essential. TINA also interacts with commercial-item determinations: if your firm claims commercial-item status incorrectly, you lose the TINA exception and inherit retroactive disclosure obligations.

Example

A contractor submits certified cost data with a TINA certificate. DCAA audits 14 months later and finds that one labor rate built in a subcontractor quote that the contractor had already negotiated down, but failed to update in the certification. The government recovers $340K in defective pricing plus interest.

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