TINA Threshold Hits $10M; FAR Still Shows $2.5M
The statutory change is self-executing, and contractors who wait for the FAR Council to catch up risk defective-pricing exposure on every action between $2.5 million and $10 million.
TL;DR
The Truthful Cost or Pricing Data threshold for DoD contracts rose from $2.5 million to $10 million on July 1, 2026, per FY 2026 NDAA Section 1804(c). The statute is operative on its own terms, but FAR 15.403-4 still recites $2.5 million and implementing DFARS rules haven't caught up. Because the change keys to contract date and is not retroactive, the two thresholds coexist for years. Primes and subs must segregate pre- and post-July 1 actions immediately: a modification to a legacy contract still triggers certification at $2.5 million, and misapplying the threshold on a $2.5 million to $10 million deal exposes contractors to downward price adjustment plus interest and potential False Claims Act risk.
The TINA certified cost or pricing data threshold is now $10 million. It was $2.5 million until July 1. The statute is live and self-executing, but FAR 15.403-4 still recites the old figure and the DFARS implementing rules haven't been updated. That's the operational problem contractors need to manage now, not when the FAR Council gets around to conforming amendments.
Two thresholds, one desk
The statutory change is not retroactive. It keys to when a contract is entered into. Contracts awarded on or before June 30, 2026 remain subject to $2.5 million. Contracts entered after that date fall under $10 million. This date-of-agreement approach means the two thresholds will coexist for years: a contractor can hold a pre-July 1 prime contract carrying the $2.5 million trigger while simultaneously negotiating a new award at $10 million. And because modifications generally follow the threshold specified in the underlying contract, a modification to a legacy contract can still require certified cost or pricing data at $2.5 million, even after the statutory change.
The burden hasn't disappeared
A higher certification threshold doesn't mean contractors can stop preparing defensible pricing support for awards between $2.5 million and $10 million. Even where certified cost or pricing data are no longer required, contracting officers must still determine that a price is fair and reasonable, and FAR 15.402(a)(2) lets them request whatever data they need to make that determination, including data that would otherwise qualify as cost or pricing data but for the absence of a certification requirement. The difference is the certification itself: no certificate means no defective-pricing exposure under TINA for those mid-range awards, but the underlying pricing rigor shouldn't change. For awards above $10 million, the stakes are unchanged: downward price adjustment with interest, and potential False Claims Act exposure.
What to do now
Map every action straddling July 1, 2026: flag each pending action and confirm which threshold applies based on contract date. Update internal pricing checklists and subcontract templates so teams aren't applying a superseded threshold out of habit. Subcontractors receiving requests for certified cost or pricing data should confirm which threshold the prime is applying; a subcontract entered after June 30 may still be governed by $2.5 million if the prime contract predates July 1. Primes should review flow-down clauses and pricing requests to avoid demanding unnecessary certifications while preserving the data needed to support their own fair-and-reasonable determinations.
Published ·Updated ·Deep Fathom