The Defense Industry Pricing Transparency Act requires defense contractors to report significant price increases to the government within 30 days of becoming aware of them. Contractors must report when prices rise 25 percent above their original bid, 25 percent above what the government paid in the prior year, or 50 percent above historical prices from the previous five years. The law applies specifically to non-competitive defense contracts, which are typically awarded through sole-source or limited-competition processes. If contractors fail to comply with reporting requirements, they will be listed in the Federal Awardee Performance and Integrity Information System, a database used to track contractor performance and integrity. The bill aims to increase government visibility into defense spending and prevent cost overruns by making contractors more accountable for price escalations on defense purchases.
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.