Sponsors
The bill increases transparency and quicker oversight of sharp noncompetitive price increases—potentially saving taxpayer money and avoiding problematic vendors—but does so by imposing reporting duties and FAPIIS consequences that raise costs for contractors, risk reputational penalties without adjudication, and could deter critical suppliers.
Government contracting officers and procurement officials will get faster, documented notice when noncompetitive contract prices rise sharply, and those notices will be recorded in FAPIIS, improving oversight and helping avoid problematic vendors in future procurements.
Government contractors must monitor and report price changes within 30 days, creating new compliance costs and administrative burden for firms performing on DoD contracts.
Government contractors could receive adverse FAPIIS entries for failures to report, risking reputational harm and reduced future contract opportunities without a contested adjudication process.
Suppliers of critical items may be discouraged from doing business with the DoD if legitimate price fluctuations trigger reporting or adverse entries, risking supply disruptions and harming national security and readiness.
Based on analysis of 2 sections of legislative text.
Requires offerors on certain noncompetitive DoD contracts to report large price increases within 30 days and allows adverse FAPIIS entries for nonreporting.
Requires companies that win certain noncompetitive Department of Defense contracts to report large price increases for products or services and authorizes the Defense Contract Audit Agency director or service acquisition executives to enter adverse data into the federal performance database if a contractor fails to report. Contractors must notify the contracting officer within 30 days after learning a price meets specified thresholds (25% or 50% increases depending on prior price comparisons).
Introduced September 8, 2025 by Chris Deluzio · Last progress September 8, 2025