What happens if the contractor does not provide a certificate of current costs for a modification exceeding the TINA threshold?

When a contractor fails to provide a certificate of current costs for a modification that exceeds the TINA (Truth in Negotiations Act) threshold, the consequences typically center around the government's ability to assess and validate costs. The correct answer highlights that non-compliance with the requirement to submit a certificate can lead to a reduction in profit or withholding of awards. This is crucial because TINA is designed to ensure that the government receives fair and accurate pricing, primarily through required disclosure of cost data.

By not providing the necessary certification, the contractor is effectively not adhering to the regulations put in place to monitor and verify costs. This non-compliance can undermine the government's ability to make informed decisions about the fairness and reasonableness of proposed costs, potentially leading to a situation where the contractor may face financial consequences such as reduced profit margins on the contract or being unable to receive future contract awards.

In contrast, the other options mistakenly imply that there would be no impact on the government's decision-making process or that the contractor has no obligations if the original award followed competitive procedures, which is not aligned with the principles of cost accountability established by TINA.