Defense Industry Pricing Transparency Act

Key Points

• This bill requires companies that sell products or services to the military to report any major price increases. If a price jumps by 25 percent over the original bid or the previous year's price, the company must tell the government within 30 days.
• The rule specifically targets contracts that were not opened up for competition. These are often called sole-source contracts, where the government only buys from one specific company, making it harder to control costs.
• Companies must also report if a price is 50 percent higher than what the government paid at any point in the last five years. This helps officials track how much costs are rising over a longer period of time.
• If a company fails to report these price hikes, their name and the details of the expensive product will be listed in a public federal database. This list tracks the performance and honesty of companies that get government money.
• The goal is to stop the military from overpaying for equipment and services. By making price hikes public and mandatory to report, the bill aims to save taxpayer money and hold defense companies accountable.

Impact Analysis

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