What is considered defective pricing?

Defective pricing occurs when a contractor submits cost or pricing data that is not complete or accurate, ultimately leading to the government paying more than it should for the contract. In the context of providing incomplete data during negotiations, this specifically aligns with the definition of defective pricing, as it undermines the government's ability to assess whether the price being negotiated is fair and reasonable.

The implications of providing incomplete data are significant; it can result in price adjustments or overpayments for goods and services, which the government might later seek to recover. This practice is heavily scrutinized under federal contracting laws and regulations because it compromises the integrity of the procurement process, making it critical for contractors to submit complete and truthful cost data as part of their negotiation process.

Other options provided relate to different issues in contract management or compliance but do not fit the specific legal definition of defective pricing. For instance, filing late paperwork pertains to administrative punctuality rather than the accuracy or completeness of pricing data. Incorrectly estimating time needed for contract completion is more about project management and delivery rather than pricing accuracy, while failing to follow up on contractual obligations relates to contract performance rather than pricing integrity. Each of these indicates potential problems in contract execution but lacks the specific connection to the completeness or accuracy of pricing data