On September 30, the Office of the Undersecretary of Defense for Acquisition and Sustainment issued a memorandum titled “Delegation of Defective Pricing Authority to the Defense Contract Management Agency,” describing DCMA’s new, enhanced role in TINA audits and subsequent disputes. The memo states that DCMA has created a “Defective Pricing Pilot Team,” which will “provide support” to PCOs and DCAA auditors in connection with defective pricing matters. According to the memo: “Effective immediately” PCOs may delegate to DCMA traditional PCO functions under FAR 15.407-1(b), (d), and (e), to DCMA, and DCMA will take “all actions” to resolve defective pricing issues on such matters, including, inter alia, “issu[ing] contracting officer final decisions” and “litigat[ing] any appeal or case that results from delegated DCMA defective pricing actions.” While it remains to be seen how DoD customers will implement this delegation of authority, contractors facing defective pricing allegations should be aware that DCMA may play an increasingly visible role in negotiating and litigating TINA disputes going forward.
