If defective pricing is discovered after award:

• A. The government is entitled to a price adjustment for any significant amount
• B. The contractor must immediately resign
• C. No action is allowed
• D. The government will terminate the contract

Answer: (A)

Defective pricing discovered after award triggers a government remedy to correct the price to reflect accurate costs. When data supplied for pricing is inaccurate or incomplete, the contract price may be higher than it should be, so the government is entitled to a downward price adjustment to recover or offset those excess costs. This is the primary remedy because it directly aligns the price with the true cost basis and enforces the accountability imposed by Truth in Negotiations Act requirements.

The other options aren’t correct because they don’t reflect how defective pricing is remedied. Resigning isn’t a contractual remedy, and “no action” ignores the government’s right to recover overcharges. Termination is not the automatic or sole remedy for defective pricing; it could occur in other circumstances, but the standard recourse is a price adjustment.