Pentagon closes contractor loophole on late pricing data
H.R. 5082 — Best Price for Our Military Act of 2025 · Filed by Chris Deluzio (D-PA) · 1 cosponsor · Introduced Sep 2, 2025 · Referred to committee
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What it does
This bill amends federal procurement law to eliminate a contractor defense that currently allows late submission of cost and pricing data if that data is more than 30 days old. Under current law, contractors can submit updated pricing information after a contract price is agreed upon and still claim a defense if the data they submit is recent enough. This bill removes that defense, making contractors liable for overcharges even when they submit late data that is less than 30 days old, potentially lowering what the military pays for goods and services.
Why we flagged it
The bill tightens contractor liability for late cost submissions in military contracts, closing a loophole that has allowed contractors to submit pricing data after agreement without penalty. This is a straightforward accountability measure aimed at reducing defense procurement costs.
What the text implies
- Contractors may respond by submitting cost/pricing data earlier in the negotiation process, potentially shifting negotiating leverage and timelines.
- The 30-day threshold becomes a hard deadline; contractors who miss it lose a key defense and face potential liability recovery actions by the government.
The full analysis lists 3 implications of this text.
Who stands to gain
U.S. Department of Defense (reduced contract costs); U.S. taxpayers (lower defense spending)