Defense Industry Pricing Transparency Act
Summary
The Defense Industry Pricing Transparency Act aims to amend Title 10 of the United States Code, mandating the reporting of significant price increases in defense contracts. This bill requires offerors to report price hikes exceeding specified thresholds to the relevant contracting officer. Noncompliance results in the inclusion of the offeror's identification and related contract details in the Federal Awardee Performance and Integrity Information System.
Expected Effects
The act seeks to increase transparency and accountability in defense spending. It will likely lead to greater scrutiny of defense contractor pricing practices. This could potentially reduce instances of unjustified price increases.
Potential Benefits
- Increased transparency in defense contract pricing.
- Potential for reduced wasteful spending in the defense sector.
- Improved oversight of defense contractors.
- Greater accountability for price increases.
- May incentivize more competitive bidding processes.
Most Benefited Areas:
Potential Disadvantages
- Increased administrative burden for defense contractors.
- Potential for delays in contract negotiations due to reporting requirements.
- Possible chilling effect on innovation if contractors are overly cautious about pricing.
- Risk of inaccurate or incomplete reporting.
- May not address the root causes of price increases in the defense industry.
Constitutional Alignment
The bill aligns with the Constitution's broad mandate to "provide for the common defence" (Preamble). Article I, Section 8 grants Congress the power to raise and support armies and provide for a navy, implying the power to regulate defense spending. The requirement for reporting price increases can be seen as an exercise of Congress's power to oversee the expenditure of public funds, ensuring accountability and preventing waste.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).