Truth in Negotiations Act (TINA) - ANSWER Occurs when the contractor
gives false cost and pricing data during negotiations subject.
Defective pricing means the contractor is certified to false data. Currently, the
TINA threshold is $750,000. Defective pricing possibilities must be analyzed
and then substantiated before the KO can take action.
What are Fixed fixed-price contracts? - ANSWER Fixed price contracts
provide for a price that is not subject to any adjustment based on the contractor's
cost experienced in performing the contract. A fixed-price contract is used when
the risk involved is minimal or can be predicted with an acceptable degree of
accuracy.
What are Cost-Reimbursement Contracts? - ANSWER Cost-reimbursement
contracts provide for payment of allowable incurred costs. They establish:
•An estimate of total cost
•The purpose of obligating funds
•A ceiling that the contractor may not exceed, except at its own risk, without the
approval of the KO
This type of contract is suitable for use only when the uncertainties involved in
contract performance do not permit costs to be estimated with sufficient
accuracy to use any type of fixed-price contract.
Time and Materials/Labor Hour Contracts - ANSWER T&M contracts provide
for acquiring supplies or services on the basis of direct labor hours at specified
fixed rates that include:
•Wages •Overhead
•General and administrative expenses
gives false cost and pricing data during negotiations subject.
Defective pricing means the contractor is certified to false data. Currently, the
TINA threshold is $750,000. Defective pricing possibilities must be analyzed
and then substantiated before the KO can take action.
What are Fixed fixed-price contracts? - ANSWER Fixed price contracts
provide for a price that is not subject to any adjustment based on the contractor's
cost experienced in performing the contract. A fixed-price contract is used when
the risk involved is minimal or can be predicted with an acceptable degree of
accuracy.
What are Cost-Reimbursement Contracts? - ANSWER Cost-reimbursement
contracts provide for payment of allowable incurred costs. They establish:
•An estimate of total cost
•The purpose of obligating funds
•A ceiling that the contractor may not exceed, except at its own risk, without the
approval of the KO
This type of contract is suitable for use only when the uncertainties involved in
contract performance do not permit costs to be estimated with sufficient
accuracy to use any type of fixed-price contract.
Time and Materials/Labor Hour Contracts - ANSWER T&M contracts provide
for acquiring supplies or services on the basis of direct labor hours at specified
fixed rates that include:
•Wages •Overhead
•General and administrative expenses
