If, after award, certified cost or pricing data are found to be inaccurate, incomplete or noncurrent, what is the Government entitled to?

• A. The government is entitled to a price adjustment, including profit or fee
• B. The contractor is entitled to a price increase
• C. No adjustment is allowed
• D. Only the contract term length can be adjusted

Answer: (A)

When certified cost or pricing data used to set the contract price are later found to be inaccurate, incomplete, or noncurrent, the Government is entitled to a price adjustment to reflect the corrected information, including adjustments to profit or fee. This requirement comes from Truth in Negotiations Act guidance that negotiations are based on accurate data, and if those data turn out to be incorrect, the final price must be adjusted accordingly so the contract reflects actual costs. The adjustment can affect the total price and the contractor’s profit or fee as warranted by the revised data, ensuring fairness and reasonableness. The other options don’t fit because they either grant the contractor a new price increase after the data were faulty, deny any adjustment, or only allow changing the contract term, which doesn’t address the pricing based on the flawed data.