Certified Cost and Pricing Data Thresholds to Increase July 1, 2018
On July 1, 2018, the threshold for obtaining certified cost and pricing data increases substantially from $750,000 to two million dollars. The change was authorized by the Department of Defense pursuant to a class deviation, pending official rulemaking and publication in the Federal Acquisition Regulation (“FAR”). The class deviation implements Section 811 of the National Defense Authorization Act (“NDAA”) for Fiscal Year 2018, which raised the certified pricing threshold contained in the Truthful Cost or Pricing Data Act (still commonly referred to as “TINA” based on the former name of the relevant statute, the Truth in Negotiations Act). The Civilian Agency Acquisition Council recently followed suit, advising other federal agencies that they “may authorize a class deviation to implement the threshold change.” In addition to the increase under the NDAA, the TINA threshold is also subject to adjustment every five years to keep pace with inflation. See 41 U.S.C. § 1908. The last adjustment for inflation, made in 2015, raised the threshold by $50,000.
The increased pricing threshold applies to negotiated prime contracts, subcontracts (if the prime contractor was required to furnish certified cost or pricing data), and the modification of any contract or subcontract entered into after June 30, 2018. For contracts entered into on or before June 30, contractors can request to modify the contracts, without consideration, to use the new threshold. 10 U.S.C.A. § 2306a(6).
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