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Truth in Negotiations Act (TINA) : Occurs when the contractor gives false cost and pricing data during negotiations subject. Defective pricing means the contractor certified to false data. Currently, the TINA threshold is $750,000. The possibility of defective pricing must be analyzed and substantiated before the KO takes action. What are Fixed Price Contracts? : Fixed price contracts provide for a price that is not subject to any adjustment on the basis of the contractor's cost experienced in performing the contract. A fixed price contract is used when the risk involved is minimal or can be predicted with an acceptable degree of accuracy. What are Cost-Reimbursement Contracts? : Cost-reimbursement contracts provide for payment of allowable incurred costs. They establish: •An estimate of total cost •The purpose of obligating funds