CLC DEFINITION OF TERMS
Indefinite Delivery/Indefinite Quantity Contracts - ✔✔ IDIQ contracts are used to acquire
supplies and/or services when the exact time of future deliveries are unknown at the time of
contract award.
An IDIQ contract provides for an indefinite quantity, within stated limits, of supplies or services
to be furnished during a fixed period, with deliveries or performance to be scheduled by placing
orders with the contractor.
Truth in Negotiations Act (TINA) - ✔✔ Occurs when the contractor gives false cost and pricing
data during negotiations subject.
Defective pricing means the contractor certified to false data. Currently, the TINA threshold is
$750,000. The possibility of defective pricing must be analyzed and substantiated before the KO
takes action.
What are Fixed Price Contracts? - ✔✔ Fixed price contracts provide for a price that is not
subject to any adjustment on the basis of 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? - ✔✔ 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
Indefinite Delivery/Indefinite Quantity Contracts - ✔✔ IDIQ contracts are used to acquire
supplies and/or services when the exact time of future deliveries are unknown at the time of
contract award.
An IDIQ contract provides for an indefinite quantity, within stated limits, of supplies or services
to be furnished during a fixed period, with deliveries or performance to be scheduled by placing
orders with the contractor.
Truth in Negotiations Act (TINA) - ✔✔ Occurs when the contractor gives false cost and pricing
data during negotiations subject.
Defective pricing means the contractor certified to false data. Currently, the TINA threshold is
$750,000. The possibility of defective pricing must be analyzed and substantiated before the KO
takes action.
What are Fixed Price Contracts? - ✔✔ Fixed price contracts provide for a price that is not
subject to any adjustment on the basis of 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? - ✔✔ 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
