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    Question 1 If Supplier A's quote to Buyer A for parts A-M is over the TINA threshold but Supplier's A's separate quote to Buyer B for parts N-Z are not over $700k, is there a requirement to include parts N-Z in the Cost Analysis for A-M? Question 2 If neither quote is over the TINA threshold individually but the combined value exceeds $700k, is a Cost Analysis required to be performed on both? Question 3 Depending on the answers above, would you recommend (or is there a requirement) that Cost Estimating request all parts from a supplier on the same quote? (Sometimes there are major subcontract buyers (direct charging) vs general procurement buyers (indirect) that also buy from the same supplier. The major subcontract suppliers generally own the design of parts while general procurement builds to print so there could be contract differences). I figure in the supplier's eyes, it is two different quotes and PO's so they should be separate but DCAA may see it differently so I was wondering which is correct. Let me know, thanks.


    Answer

    I recommend the organization asking the question, review the following references.
    PGI 215.402  Pricing policy  - - 
    1)  Contracting officers must purchase supplies and services from responsible sources at fair and reasonable prices. The Truth in Negotiations Act (TINA) (10 U.S.C. 2306a and 41 U.S.C. chapter 35) requires offerors to submit certified cost or pricing data if a procurement exceeds the TINA threshold and none of the exceptions to certified cost or pricing data requirements applies. Under TINA, the contracting officer obtains accurate, complete, and current data from offerors to establish a fair and reasonable price (see FAR 15.403). TINA also allows for a price adjustment remedy if it is later found that a contractor did not provide accurate, complete, and current data.

    48 CFR 9903.201-1(b)
    Question 1.  The user and  buying organization may choose the timing of a procurement.  The funding stream, commerciality, and other factors may direct the method/timing of the procurement. 
    Question 2. The buyer and Contracting Officer would seem to have a choice regarding methods available to determine "fair and reasonable prices" as indicated in PGI 215.402 (1) 
    Question 3. As listed in CAS Exemptions - 48 CFR.9903.201-1(b) there are 11 exemptions available under the CAStandards.  As mentioned in the question, if these "supplies" are from various small or large business's or for various locations within the government it may or may not be possible to aggregate the requistion cost effectively. 

    A buying activity cannot "split" requirements in order to stay under the $700k threshold for certified cost and pricing data.  This may not be the intent, but that's the implication based on the question.   Since the requestor references DCAA standards, I recommend that you discuss this with DCAA, since that activity's decision is controlling and finally, you should discuss your strategy with your legal counsel before proceeding

    I also recommend a discussion with the buyer/contracting officer in order to create a "Best Value" climate for the numerous transations that may be affected. 



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