Does TINA apply on FFP CLINS

[SNATSMC]

I have a Services contract that was sole sourced to us in which we have FFP and CPFF CLINS. If we've determined that our costs are substantially less than we estimated on the FFP CLIN, are we held to TINA as well as FAR 52-215-10? We submitted a certificate of current cost and pricing data, but I've always believed that that this applied towards the cost plus CLINS only and not the FFP CLINS. Please correct me if I'm wrong.

[Don Mansfield]

If you're asking whether the Government would potentially be entitled to a price reduction on a FFP contract subject to TINA that was defectively priced, the answer is yes. However, just because actual costs are substantially less than estimated costs does not mean that there is defective pricing. FAR 15.406-2( states the following regarding a certificate of current cost or pricing data:

The certificate does not constitute a representation as to the accuracy of the contractor?s judgment on the estimate of future costs or projections. It applies to the data upon which the judgment or estimate was based. This distinction between fact and judgment should be clearly understood. If the contractor had information reasonably available at the time of agreement showing that the negotiated price was not based on accurate, complete, and current data, the contractor?s responsibility is not limited by any lack of personal knowledge of the information on the part of its negotiators.