TINA Violations

What are TINA violations?

The Truth in Negotiations Act, or “TINA,” requires contractors who are negotiating certain government contracts – e.g., sole source contracts where there is no established “market price” for the good or service — to submit cost and pricing data to the Government that is truthful, accurate, and complete. TINA violations are sometimes referred to as “defective pricing.”

Under certain circumstances, a contractor may be required to disclose cost information to the government when negotiating a price for products and services to be provided to the government. One of the most important laws governing the disclosure of cost information is known as the Truth in Negotiations Act, 10 U.S.C. § 2306a, 41 U.S.C. § 254b, commonly referred to as TINA.

Under the Truth in Negotiations Act, government contractors and subcontractors generally are required to submit cost and pricing data for negotiated contracts, subcontracts, or modifications exceeding a specified monetary threshold, if the government contract is awarded without “adequate price competition.” The contractor also must certify that the submitted data is current, accurate, and complete. Contractors may be found liable for fraud under the False Claims Act for defective pricing if they deliberately withhold or falsify such information.

VSG’s Qui Tam Attorneys Are Experienced in Handling TINA False Claims Act Cases

While with the U.S. Department of Justice, VSG partner Shelley Slade obtained a $10 million settlement with Hughes Aircraft Company based on claims that the defense contractor had falsely certified its cost and pricing data in connection with a U.S. Air Force missile procurement. Similarly, VSG partner Janet Goldstein was one of the lawyers representing a qui tam whistleblower in a False Claims Act lawsuit charging Teledyne Inc. with secretly padding its cost estimates for numerous government contracts. Teledyne paid $27.5 million to settle the lawsuit.