PBMares Accounting Blog

Explaining the Truthful Cost or Pricing Data Act: What Government Contractors Need to Know

Posted by Neena Shukla, CPA, CFE, CGMA, FCPA on Oct 30, 2017 3:08:57 PM

For government contractors, compliance with the Truthful Cost or Pricing Data Act (TINA) is a critical part of staying on the right side of federal contracting and acquisition requirements. But what is the law, and what does it do? Here’s a brief primer.

Let’s start with the obvious: Why is the Truthful Cost or Pricing Data Act called “TINA”?
Because it started out as the Truth in Negotiations Act. TINA was passed in 1962 because government agencies were concerned that they were not getting a fair price from suppliers. However, it wasn’t until the mid-1980s that the government began treating defective pricing as an indication of criminal fraud, especially in single-supplier situations where the government doesn’t always know if it’s paying a fair and reasonable price. In 2013, the government renamed the law, but the old acronym stuck. Understandably, nobody chose to start calling it “TCoPDA.”

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Topics: Government Contracts, TINA