The Stop Pentagon Price Gouging Act aims to reduce costs for Department of Defense contracts by strengthening transparency and competition requirements. The bill requires more stringent cost and pricing data from contractors, particularly those submitting sole bids, and narrows the definition of what qualifies as a "commercial item" to prevent contractors from avoiding detailed cost scrutiny. It also establishes a pilot program that offers defense contractors accelerated payments of up to 80 percent if they promptly provide cost information to the Pentagon, while limiting standard progress payments to 50 percent. Additionally, the legislation requires large defense contractors to annually report detailed pricing strategies, cost changes, profit margins, and revenue increases to the Department of Defense, with these reports made publicly available online. The bill targets traditional defense contractors and takes effect 60 days after enactment, with the goal of preventing excessive pricing and ensuring taxpayers receive fair value on military contracts.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.