Defense Industry Pricing Transparency Act

House Votes

This bill aims to shine light on big price jumps in certain Defense Department contracts. If a company selling to the Pentagon on a non-competitive contract sees its price climb sharply, it must tell the government within 30 days. A report is required when the price goes up at least 25% over the bid price, 25% over what the government paid last year, or 50% over what the government paid more than five years ago. If the company does not report, the government will note the issue in a federal contractor performance database, including details like the product, order quantity, unit cost, total cost, buyer, and date. This is intended to flag unusual price hikes and help the government spot problems early.

Key points

• Who is affected: Companies offering products or services to the Defense Department under certain non-competitive contracts.
• What changes: Must report large price increases within 30 days; failure to report leads to a record in a federal contractor performance system with specifics about the purchase.
• When it applies: When the company becomes aware that the price meets one of the set jump thresholds (25% or 50%, depending on the comparison).