To amend section 3706 of title 10, United States Code, to eliminate the submission of cost and pricing data after agreeing on the contract price as a defense to contract price adjustments for defective cost and pricing data, and for other purposes.
About This Bill
Committee
Latest Action · February 6, 2024
Referred to the House Committee on Armed Services.
This bill would modify federal defense contracting rules to prevent contractors from using a late submission of cost and pricing data as a legal defense when the government seeks to adjust contract prices due to defective pricing information. Currently, defense contractors can avoid price adjustments by claiming they submitted their cost data after the price was already agreed upon. The bill eliminates this loophole, ensuring the government can recover overpayments when contractors provide inaccurate or incomplete pricing data, regardless of when that data was submitted. This change affects defense contractors and subcontractors who work on federal military contracts. The legislation is intended to protect taxpayer money by giving the Department of Defense stronger tools to negotiate fair prices and correct pricing errors in defense contracts.
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