Defense Industry Pricing Transparency Act

The Defense Industry Pricing Transparency Act would require defense contractors to report significant price increases on government contracts. Specifically, contractors would need to notify the relevant contracting officer within 30 days if the price of a product or service reaches or exceeds 25 percent more than the original bid price, 25 percent more than what the government paid in the prior year, or 50 percent more than what the government paid in the previous five years.

The bill aims to increase transparency in defense spending by ensuring the government is aware of substantial price increases from its contractors. Contractors who fail to submit required reports could face penalties through the Federal Awardee Performance and Integrity Information System. The bill is currently under consideration by the House Committee on Armed Services and would need to pass both chambers and receive presidential approval to become law.