Federal activity overview — Defective Pricing Remedies
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When a contractor fails to submit accurate, complete, and current cost or pricing data, the government is entitled to a price reduction equal to the overstatement in price caused by the defective data, plus interest. Defective pricing reviews are conducted by DCAA and can be initiated up to three years after final payment. The Price Reduction for Defective Certified Cost or Pricing Data clause (FAR 52.215-10/11) provides the contractual mechanism for recovering overpayments.
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Ask about Defective Pricing Remedies$2,000,000 — defective pricing reviews apply to contracts subject to TINA
FAR 15.407-1 (Defective Certified Cost or Pricing Data); FAR 52.215-10/11; 10 U.S.C. 3705
All contracts and subcontracts for which certified cost or pricing data was required and submitted. The government has 3 years from final payment to initiate a defective pricing action.
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Bureauify. (2026). Defective Pricing Remedies — Federal Contract Intelligence. Bureauify Federal Intelligence. Retrieved , from https://bureauify.com/glossary/defective-pricing-remedies
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