The Truth in Negotiations Act (TINA)
The Truth-in-Negotiations-Act of 1962 is important to the government’s procurement because it helps it to acquire items at fair prices. Thai (2001) argued that there were many cases involving defective pricing from government contractors prior to the enactment of this act. At times, contracting officers acting for the government might only have one dealer as the source for a commodity, also referred to as sole source procurement (Thai, 2001). In such a case, it is difficult to compare prices and determine the expected range. A dealer can engage in defective pricing by taking advantage of the circumstance. Worse still, the contracting officer would also have incentives to engage in fraud. The requirements of TINA and associated penalties for its violation compel the two parties to act diligently during the transaction. The government is not only able to negotiate for a competitive and fair price in procurement, but also get the deserved quality commodities in contract negotiations.
A contracting officer (CO) needs to follow some steps in order to audit pricing of a contractor’s submitted proposal. First, the CO must determine whether the contract is subject to TINA. Some exemptions might exclude some contracts from being executed under TINA requirements or particular laws (Acquisition.org, 2012). This would help to avoid applying a wrong basis in auditing a contract pricing. If the contract is ascertained to be subject to TINA, the CO should then evaluate the pricing data to certify that it is current, accurate and complete as required by TINA. This step should involve verification of costing elements and necessary certifications. Finally, the CO should recommend rational pricing adjustments in cases where non-compliance is established and any necessary steps. This steps are procedural and can help save on both time and costs.
References
Acquisition.org. (2012). Subpart 12.4-Applicability of Certain Laws to the Acquisition of
Commercially Available Off-The-Shelf Items. Retrieved from: https://www.acquisition.gov/far/current/html/Subpart%2012_5.html#wp1075462
Thai, V. K. (2001) Public Procurement Re-Examined. Journal of Public Procurement, 1(1), 9-
50. Retrieved from: http://ippa.org/jopp/download/vol1/Thai.pdf
