FAR FAR Defective Pricing & Penalties 2

Question 1

What legislation originally established the requirement for certified cost or pricing data in US government contracting?

Accepted Answer

Truth in Negotiations Act (TINA), now called the Truthful Cost or Pricing Data Act

Answer

The Truth in Negotiations Act (TINA), now known as the Truthful Cost or Pricing Data Act, established the statutory requirement for contractors to certify cost or pricing data.

Question 2

Under the Truthful Cost or Pricing Data Act, which contracts are generally subject to certified cost or pricing data requirements?

Accepted Answer

Negotiated prime contracts and subcontracts exceeding the statutory threshold, absent an applicable exception

Answer

Certified cost or pricing data requirements apply to negotiated prime contracts and subcontracts above the threshold, unless a specific statutory exception applies such as adequate price competition or commercial items.

Question 3

Why is the 'date of agreement' significant in the context of certified cost or pricing data?

Accepted Answer

It is the date as of which cost or pricing data must be accurate, complete, and current per the certificate

Answer

The date of agreement is critical because the contractor certifies that data is accurate, complete, and current as of that date, establishing the baseline for assessing defective pricing claims.

Question 4

Which of the following is a valid statutory exception to certified cost or pricing data requirements under FAR 15.403-1(b)?

Accepted Answer

The price is based on adequate price competition

Answer

Adequate price competition is one of the enumerated exceptions to certified cost or pricing data requirements under FAR 15.403-1(b)(1), recognizing that market forces provide sufficient pricing discipline.

Question 5

What penalty can be assessed for submission of defective cost or pricing data that rises to the level of a false claim under the False Claims Act?

Accepted Answer

Treble damages plus statutory civil penalties for each false claim submitted

Answer

The False Claims Act provides for treble (triple) damages plus civil penalties per false claim, making defective pricing with fraudulent intent extremely costly for contractors.

FAR - Certified Cost or Pricing Data Specialist Practice Test

FAR - Certified Cost or Pricing Data Specialist Practice Test

FAR FAR Defective Pricing & Penalties 2