Contract A (1.5 mil) was awarded to a sole source vendor. Certified Cost and Pricing was obtained. TINA applies.
A new requirement for the same items was recieved by the contracting shop. The sole source vendor submitted an offer (698K). Other than cost and pricing data was requested by the contracting shop and was received. This information contained actuals from the past three contracts (including Contract A).
After reviewing the other than cost and pricing data, the contract specialist pulled the file for Contract A and looked at the Audit, Technical Audit, Cost and Pricing Data, and PNM that was completed on Contract A. The material actuals for the past contracts did not match up with what the Contractor Certified to under Contract A. This discrepancy was valued around 100K.
It is believed that the contractor either-
A--Negotiatied material prices with vendors down after award is made with the Gov't
or
B-- Waited until they recieve multiple awards from other contracts and purchase material in bulk to realize significant savings.
It is in my opinion, that this situation could be identified as defective pricing because---
1. Certified Cost and pricing data was obtained and Tina applies
2. The Government relied on the certified cost and pricing data
3. Reliance on this data caused and increase in the negotiated price
4. The contractor knew, or should have known, that more current, accurate and complete data existed.
Through contacting DCAA and DCMA, it looks as though Post Awards Audits/Defective Pricing Cases are not even looked at unless they value 100m ( i may be wrong on that one). If this is the case, what other steps can or should a contracting specialist take to resolve this matter.
It is important to note that this has occured multiple times when Certified Cost and Pricing was obtained and Tina applies.
Thanks in advance for your help.