HR-5176 : Still Just a Bill

The Defense Industry Pricing Transparency Act, also known as H.R. 5176, aims to increase oversight of defense contracts by requiring companies to report significant price increases to the government. Key provisions of the bill include:

• Reporting Requirement: Defense contractors must report to the relevant contracting officer within 30 days if the price of a product or service under a non-competitive contract exceeds certain thresholds.
• Price Increase Thresholds: Reports are required when prices exceed:
  • 25% more than the initial bid price.
  • 25% more than the price paid by the government in the immediately preceding calendar year.
  • 50% more than the price paid by the government at any point in the five years preceding the contract date.
• Noncompliance Penalties: If a contractor fails to report a price increase, the Director of the Defense Contract Audit Agency or the relevant service acquisition executive will include specific information about the contractor and the product/service in the Federal Awardee Performance and Integrity Information System. This includes identifying the contractor, the product/service, its national stock number, order details (quantity, unit cost, total cost, purchasing entity, and date).
• Covered Contracts: The reporting requirements apply to contracts awarded without competitive bidding, as defined under section 3204 of title 10 of the U.S. Code or section 6.302 of the Federal Acquisition Regulation.

In essence, H.R. 5176 seeks to bring greater transparency to defense contracting and hold contractors accountable for substantial price increases, particularly in non-competitive contract situations.