Sponsor
Chris Deluzio
Representative · D-PA
Representative · D-PA
The bill strengthens procurement transparency and oversight to help curb sharp price increases, but does so by imposing prompt reporting and FAPIIS consequences that raise compliance costs, risk unfair reputational entries, and could discourage critical suppliers — trading tighter cost control for increased burden and potential supply risks.
Taxpayers and DoD contracting officers get faster, clearer notice when noncompetitive contract prices rise sharply because contractors must report such changes and entries are recorded in FAPIIS, enabling quicker oversight, potential cost avoidance, and better vendor selection in future procurements.
Suppliers of critical items and taxpayers could be harmed if legitimate price fluctuations trigger reporting or adverse FAPIIS entries, potentially deterring those suppliers from doing business with the DoD and weakening supply resilience.
Government contractors risk reputational harm and reduced future contract opportunities if they are entered into FAPIIS for failing to report price changes, with limited recourse through a contested adjudication process.
Government contractors must monitor and report price changes within 30 days, creating new administrative burdens and compliance costs for firms doing business with the DoD.
Based on analysis of 2 sections of legislative text.
Requires contractors on certain noncompetitive DoD contracts to report large price increases and mandates adverse FAPIIS entries for failures to report.
Official title: To amend title 10, United States Code, to require reporting of certain price increases for covered contracts, and for other purposes.
Introduced September 8, 2025 by Chris Deluzio · Last progress September 8, 2025
Requires companies awarded certain noncompetitive Department of Defense contracts to notify the contracting officer within 30 days when prices for a product or service rise substantially above historical or bid prices, and mandates adverse reporting to the federal contractor performance database (FAPIIS) when firms fail to comply. The rule applies to noncompetitive DoD procurements and sets specific thresholds for what counts as a "significant" price increase.