Can a Subcontractor Charge 2 different Primes a different Price for the same material?

Started by Rusty Holden · Jun 28, 2022 · 7 replies

  1. R

    Rusty Holden

    Jun 28, 2022 · 3y ago

    Original post

    I came across a situation where a Subcontractor charged one Prime contractor a different price for the same material than it did to a second Prime contractor.  Can a Subcontractor Charge 2 different Primes a different price for the same material?  Is that a violation of TINA?

    thanks,

    Geo

  2. j

    ji20874

    Jun 29, 2022 · 3y ago

    As I think I read here on WIFCON, TINA is a disclosure statute, not a pricing statute.  If the subcontractor disclosed, maybe all is well with TINA?

    Personally, I don't see a problem with a firm charging different prices to different customers -- it happens all the time.  Different circumstances call for different prices, right?  Are you suggesting that EVERYTHING* in the two arrangements is identical, so an identical price is mandatory?  

    *but here, we don't know that EVERYTHING is identical -- could be different quantities, different delivery dates, different T&Cs, different bargaining strengths, and so forth...

  3. j

    joel hoffman

    Jun 29, 2022 · 3y ago

    Rusty Holden said:

    I came across a situation where a Subcontractor charged one Prime contractor a different price for the same material than it did to a second Prime contractor.  Can a Subcontractor Charge 2 different Primes a different price for the same material?  Is that a violation of TINA?

    thanks,

    Geo

    How would TINA be applicable to one or both of the sales? There is no context to either question.

  4. C

    Constricting Officer

    Jun 29, 2022 · 3y ago

    Rusty Holden said:

    I came across a situation where a Subcontractor charged one Prime contractor a different price for the same material than it did to a second Prime contractor.  Can a Subcontractor Charge 2 different Primes a different price for the same material?  Is that a violation of TINA?

    No and No. Good day.

  5. V

    Vern Edwards

    Jun 29, 2022 · 3y ago

    Rusty Holden said:

    Can a Subcontractor Charge 2 different Primes a different price for the same material?

    Yes.

    joel hoffman said:

    Is that a violation of TINA?

    No.

  6. j

    joel hoffman

    Jun 29, 2022 · 3y ago

    Just now, Vern Edwards said:

    Yes.

    No.

    I didn’t ask if that is a violation of TINA.

  7. V

    Vern Edwards

    Jun 29, 2022 · 3y ago

    Rusty Holden said:

    Is that a violation of TINA?

    No.

  8. G

    General.Zhukov

    Jul 6, 2022 · 3y ago

    On 6/28/2022 at 3:25 PM, Rusty Holden said:

    Can a Subcontractor Charge 2 different Primes a different price for the same material?

    Yes.  Circumstance matter.

    Prime A.  I would like one widget please, delivered ASAP to Kwajalein Atoll, Marshall Islands.

    Sub: That will be $50,000/ea.

    Prime B. I would like one thousand widgets, delivery in six months, to the big depot across the street from your factory.

    Sub: That will be $10,000/ea.

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