Effective July 1, 2018, the threshold under the Truthful Cost or Pricing Data Act (still commonly referred to by its former name, the Truth in Negotiations Act (or TINA)) for contractors to submit to the government certified “cost or pricing data” increases significantly from $750,000 to $2 million. This change—which was authorized by class deviations pending formal rulemaking and publication in the Federal Acquisition Regulation (or FAR), and which implements Section 811 of the Fiscal Year 2018 National Defense Authorization Act—applies to both civilian and Department of Defense agencies.

The $2 million certified “cost or pricing data” threshold generally applies to: (1) negotiated prime contracts entered into on or after July 1, 2018; (2) subcontracts entered into on or after July 1, 2018, under prime contracts where the prime contractor is required to furnish such data; and (3) the modification of any prime contract or subcontract on or after July 1, 2018.  Additionally, for prime contracts “entered into on or before June 30, 2018,” prime contractors can request, without “consideration,” that the $2 million threshold be applied (see 10 U.S.C. § 2306a(6)).

Further, as the class deviations explain, because the cost accounting standards (CAS) threshold is tied to the certified “cost or pricing data” threshold, the CAS threshold will also increase to $2 million effective July 1, 2018.

If you have any questions about the foregoing topics, or about any other related issues, please do not hesitate to contact Aron Beezley.