Customizing the Use of TINA (Truth in Negotiations Act) in the DoD

Abstract

TINA, as it currently stands, is a one-size-fits-all prescription. Specifically, TINA does not differentiate among various settings involving different acquisition category, acquisition life cycle, and corresponding preferred contract type. We propose to tailor the use or disuse of TINA to different scenarios by considering the economic incentives created by TINA enforcement. In some settings where TINA is misplaced, we propose to drop TINA to remove the ill incentives and consequent unintended negative consequences. In other settings where TINA brings more benefit than cost, we recommend keeping TINA in place. In a few settings where the judgment is not unambiguous, we propose to leave the discretion to decision makers.