What is a potential outcome if a contractor refuses to provide required data during negotiations?

If a contractor refuses to provide required data during negotiations, a potential outcome is that the government may receive double damages. This scenario typically arises under the False Claims Act, where if a contractor commits fraud by withholding necessary information, they may be liable for treble damages, which means the government can recover three times the amount of damages incurred.

This outcome emphasizes the importance of transparency and accountability in government contracting. When contractors do not provide the necessary data, it hinders the government's ability to evaluate proposals effectively, maintain fair competition, and ensure taxpayer dollars are used efficiently. This legal framework is designed to deter misconduct and encourage compliance with data requests, ensuring that all parties act in good faith during the negotiation process.

The potential for treble damages serves as a strong incentive for contractors to fulfill their obligations in providing necessary data. In contrast, other choices do not accurately reflect outcomes that would typically arise from a contractor's refusal to provide required data during negotiations.