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Government Seeks To Push Defective Pricing Into Twilight Zone

Dec.21.2006

Not content with the Truth in Negotiation Act (TINA) as a disclosure statute, the government has taken increasingly aggressive positions that would warp a contractor's TINA certificate into warranty of perfect pricing, creating a defective pricing regime where: (1) reliance is not an element of TINA; (2) contractors must use, not merely disclose, cost or pricing data that is current, accurate, and complete; and (3) judgmental estimates are routinely certified. In his article "Government's Defective Pricing Claim in the Great Engine War Flames Out at the Federal Circuit" published in The Government Contractor (Vol. 48, No. 36) on October 4, 2006, http://www.crowell.com/pdf/newsroom/GovtContractor_Bodenheimer_Oct06.pdf, David Z. Bodenheimer explains how the Federal Circuit decision in Wynne v. United Technologies Corp., well-established ASBCA precedents, longstanding regulations, and agency interpretations all soundly reject the government's attempts to transmogrify a contractor's liability for defective pricing.

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For more information, please contact the professional(s) listed below, or your regular Crowell & Moring contact.

David Z. Bodenheimer
Partner – Washington, D.C.
Phone: +1 202.624.2713
Email: dbodenheimer@crowell.com

W. Stanfield Johnson
Senior Counsel – Washington, D.C.
Phone: +1 202.624.2520
Email: wjohnson@crowell.com