CHAPTER 9Truth in Negotiations
Congress passed the Truth in Negotiations Act (TINA) on December 1, 1962, as Public Law 87-653. TINA requires that contractors disclose to the government details about costs they expect to incur during the performance of a contract awarded through negotiated procurement. This disclosure—and the sanctions that can be imposed if disclosure is not made—are intended to enable the government to negotiate a price based on a realistic and fully knowledgeable assessment of a contractor’s cost expectations.
Violations of the Truth in Negotiations Act are commonly referred to as “defective pricing.” The act is an important device to guard against profiteering by contractors by means of nondisclosure of cost or pricing data. ...
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