Monday, April 16, 2018

TINA Threshold Rises to $2 Million on July 1st 2018

A lot of people have been wondering and writing to this blog about the effective date of the new TINA (Truth in Negotiations Act) threshold. For DoD (Defense Department) contracts (at least), the new threshold takes effect on July 1, 2018.

Section 811 of the fiscal year 2018 NDAA (National Defense Authorization Act) increased the threshold for obtaining certified cost or pricing data under 10 USC 2306a (also known as the Truth in Negotiations Act or TINA) from $750,000 to $2 million. With little hope of pushing through a change to the Federal Acquisition Regulations (FAR) in time, the Defense Department has issued a "class deviation" which effectively does the same thing as a FAR change. A copy of the class deviation can be downloaded (or read) here. This deviation remains in effect until its incorporated into the FAR (or otherwise rescinded).

The increased TINA threshold also increases the CAS (Cost Accounting Standards) threshold as well. 41 USC 3502 equates the CAS threshold to the TINA threshold. The class deviation for TINA therefore acts to increase the CAS threshold as well.

Good news all around.

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