2026 NDAA Increases the Truthful Cost or Pricing Data Act (TINA) Threshold to $10 Million

Highlights

• Threshold Increase. The FY 2026 National Defense Authorization Act increases the Truthful Cost or Pricing Data threshold to $10 million for qualifying prime contracts and subcontracts entered into after June 30, 2026, marking a significant statutory change for negotiated procurements.
• Inflation Adjustment. An earlier update raised the threshold to $2.5 million, effective October 1, 2025, creating multiple thresholds that government contractors must track.
• Clause Timing. Contract award dates and clause language determine which threshold applies, particularly for contracts awarded prior to June 2020.
• Effective Dates. Statutory changes may apply before the FAR text is updated, requiring government contractors to understand when new thresholds become operative.
• Compliance Impact. The updates increase the importance of reviewing government contracts and subcontracts to ensure thresholds are applied consistently.

The Truthful Cost or Pricing Data Act (previously the Truth in Negotiations Act) and still referred to as TINA, was established to ensure the government was placed on a level playing field with contractors when negotiating non-competitive or sole-source contracts. TINA applies to both prime and subcontract negotiations. While the TINA threshold hasn’t changed since 2018, there have been two updates to the threshold in less than a 12-month period. This is a welcome surprise. However, government contractors need to understand the thresholds and which ones apply to their contracts and subcontracts.

What are the TINA Thresholds?

• Prior to July 1, 2018: $ 750,000
• July 1, 2018 – September 30, 2025: $ 2 million
• October 1, 2025 – June 30, 2026: $ 2.5 million
• After June 30, 2026: $10 million

The FY 2018 National Defense Authorization Act (NDAA) raised the TINA threshold to $2 million effective July 1, 2018 (read more in our article, “Understanding Which Thresholds Apply to Your Government Contracts”).

Effective October 1, 2025, the TINA threshold increased from $2 million to $2.5 million due to an inflationary adjustment. FAR 1.109 requires the FAR Council to review and adjust all statutory acquisition-related dollar thresholds in the FAR for inflation every 5 years.

The second increase to the TINA threshold will occur in June of 2026. Section 1804 Adjustments to Certain Acquisition Thresholds of the 2026 NDAA increased the TINA threshold for prime and subcontracts entered into after June 30, 2026, to $10 million. Industry has been pushing for an increase in the threshold for years and would have preferred an even higher threshold.

Is the October 2025 Inflationary Threshold Change in the FAR?

Yes, the inflationary increase in the TINA threshold to $2.5 million is addressed in FAR 15.403-4, Requiring certified cost or pricing data (10 U.S.C. chapter 271 and 41 U.S.C. chapter 35).

FAR 15.403-4 states:

“(a)(1)...The threshold for obtaining certified cost or pricing data is $950,000 for prime contracts awarded before July 1, 2018, and $2.5 million for prime contracts awarded on or after July 1, 2018.”

There are two problems with this provision of the FAR:

• Problem 1: The FAR did not address the TINA threshold between July 1, 2018, and September 30, 2025, which is $2 million.
• Problem 2: The threshold for contracts negotiated before July 1, 2018 (i.e., $750,000) did not need to be adjusted.

The TINA threshold covers the period of time we outlined above.

How is the Threshold Applied?

Prime Contracts

For prime contracts, it is fairly straightforward. The TINA threshold for the inclusion of FAR 52.215-10 is the amount as of the award of the prime contract.

Prime Contract Modifications

For prime contract modifications, it becomes a little more complex. The August 2011 and prior contract clause, FAR 52.215-11 in section (a) simply stated:

“This clause shall become operative only for any modification to this contract involving a pricing adjustment expected to exceed the threshold for submission of certified cost or pricing data at FAR 15.403-4…”

Our friends at DCAA took this to mean that any “adjusted threshold does not automatically apply to prime contract modifications or subcontracts (or modifications of changes to subcontracts).”[i]  However, the contracting officer could issue a contract modification adjusting the threshold to be applied to any prime contract modifications or subcontracts (or modifications).

The June 2020 update to FAR 52.215-11 added “on the date of execution of the modification” to section (a). This allows for the automatic adjustment of the TINA threshold throughout the period of performance of the prime contract.

Therefore, you need to review all your contracts awarded prior to June 2020 and request that they be modified to include the June 2020 clause to ensure no modifications are required for future changes.

Subcontracts

For subcontracts, it is more complex. The October 2010 and prior contract clause, FAR 52.215-12 in section (a) stated:

“Before awarding any subcontract expected to exceed the threshold for submission of certified cost or pricing data at FAR 15.403-4, on the date of agreement on price or the date of award, whichever is later; or before pricing any subcontract modification involving a pricing adjustment expected to exceed the threshold for submission of certified cost or pricing data at FAR 15.403-4, the Contractor shall require the subcontractor to submit certified cost or pricing data…”

This again ties back to DCAA’s position that any “adjusted threshold does not automatically apply to … subcontracts...”[ii]  However, the higher-tier government contractor could issue a subcontract modification adjusting the threshold to be applied to any subcontracts.

The June 2020 update to FAR 52.215-12 added “If the threshold for submission of certified cost or pricing data specified in FAR 15.403-4(a)(1) is adjusted for inflation as set forth in FAR 1.109(a), then pursuant to FAR 1.109(d) the changed threshold applies throughout the remaining term of the contract, unless there is a subsequent threshold adjustment” to section (a). This allows for the automatic adjustment of the TINA threshold throughout the period of performance of the subcontract.

Therefore, you need to review all your contracts and subcontracts awarded prior to June 2020 and request that they be modified to include the June 2020 clauses, to ensure that no modifications are required for future changes.

Subcontract Modifications

For subcontract modifications, we believe it is simpler than prime contract modifications. The October 2010 and prior contract clause, FAR 52.215-13, in section (a) stated:

“this clause shall – (1) Become operative only for any modification to this contract involving a pricing adjustment expected to exceed the threshold for submission of certified cost or pricing data at FAR 15.403-4…” 

We believe DCAA would consider this the same as they did with prime contracts, meaning that any “adjusted threshold does not automatically apply to … subcontracts (or modifications of changes to subcontracts).”[iii]  However, the higher-tier government contractor could issue a subcontract modification adjusting the threshold to be applied to any subcontracts or subcontract modifications.

The June 2020 update to FAR 52.215-13 added “on the date of execution of the modification” to section (a)(1). This allows for the automatic adjustment of the TINA threshold throughout the period of performance of the subcontract.

Again, you need to review all your contracts and subcontracts awarded prior to June 2020 and request that they be modified to include the June 2020 clauses, to ensure that no modifications are required for future changes.

Do We Have to Wait for the FAR to Change for the FY 2026 NDAA Threshold Increases?

No. The 2026 NDAA was signed into law on December 18, 2025, and included explicit changes to 10 USC 3702(a), one of which was to make the new TINA threshold effective June 30, 2026. Therefore, certified cost or pricing data for prime and subcontracts entered into after June 30, 2026, is required when the price is expected to exceed $10 million. Government contractors submitting prime proposals or subcontract proposals that will be negotiated after June 30, 2026, will be subject to the $10 million TINA threshold. If you are submitting a proposal with an anticipated negotiation date after June 30, 2026, we recommend you coordinate with the Contracting Officer or higher-tier government contractor, as applicable, and document that the TINA threshold of $10 million will be used.

The 2026 NDAA states that “in the case of a prime contract entered into on or before June 30, 2026, the price of the subcontract is expected to exceed $2,000,000.”  This is not really correct. The inflationary adjustment from $2,000,000 to $2,500,000 was made only in the regulations, not in the statute (10 USC 3702).

Preparing for the New TINA Thresholds

Understanding how and when the updated TINA thresholds apply is critical to avoiding unnecessary certified cost or pricing data requirements and audit risk. Contractors should review existing prime contracts and subcontracts, confirm which FAR clauses are in place, and evaluate whether modifications are needed to reflect the June 2020 clause updates and upcoming 2026 NDAA changes. Redstone GCI supports government contractors with contract reviews, FAR and TINA applicability assessments, proposal and subcontract pricing support, and audit readiness services to help ensure thresholds are applied correctly across awards, modifications, and negotiations.

Frequently Asked Questions (FAQs)

• What is the TINA threshold? The TINA threshold is the dollar level at which government contractors must provide certified cost or pricing data during certain negotiations. It is intended to help the government evaluate pricing when there is not enough competition to establish price reasonableness.
• What changed with the 2026 NDAA? The threshold for certified cost or pricing data will increase to $10 million for qualifying prime contracts and subcontracts entered into after June 30, 2026. Contractors need to understand which threshold applies based on the timing of the award or negotiation.
• Why are there multiple threshold amounts listed in the article? The threshold has changed several times over the years due to statutory updates and inflation adjustments. Each amount applies to contracts negotiated during a specific time period, so government contractors must match the correct threshold to the contract date.
• Does the new $10 million threshold apply to every existing contract? No. The applicable threshold depends on when the contract or subcontract was awarded and which clauses are included. Older contracts may still operate under earlier thresholds unless they are updated or modified.
• How do contract clauses affect which threshold is used? Certain clause updates allow threshold adjustments to apply automatically during the life of a contract. If older versions of the clauses are still in place, government contractors may need to review whether modifications are necessary.
• Do government contractors need to wait for the FAR to be updated before using the new threshold? No. The statutory change establishes the effective date for the new threshold, so proposals negotiated after that date may use the updated amount even before regulatory text is revised.
• Why does this matter for government contractors? Applying the wrong threshold can lead to unnecessary data submissions or compliance risk during negotiations and audits. Understanding when each threshold applies helps teams prepare accurate proposals and support consistent contract administration.

[i] DCAA CAM Chapter 14 – Section 14-103.2 TIN applicability, Paragraph b.
[ii] DCAA CAM Chapter 14 – Section 14-103.2 TIN applicability, Paragraph b.
[iii] DCAA CAM Chapter 14 – Section 14-103.2 TIN applicability, Paragraph b.