,,ii #aagth ,,congress #b;d ,session ,s4 #dcgd ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,june #i1 #bjbb,ms4 ,warren introduced the following bill2 which was read twice and referred to the ,committee on ,armed ,services ,a ,,bill ,to prevent price gouging at the ,department of ,defense4 #a4 ,short title ,this ,act may be cited as the ,stop ,price ,gouging the ,military ,act4 #b4 ,strengthening ,truth in ,negotiations ,act provisions 7a7 ,required cost or pricing data and certification ,section #cgjb7;a77#a7 of title #aj1 ,united ,states ,code1 is amended by striking only expected to receive one bid shall be required and replacing with only expected to have one offeror1 or for which award of a cost-reimbursement contract is contemplated regardless of the number of offers received1 shall be required4 7b7 ,exceptions ,section #cgjc7;a7 of title #aj1 ,united ,states ,code1 is amended-- 7#a7 in paragraph 7#a77;,a71 by striking adequate competition and all that follows through bids and inserting adequate price competition1 except for the award of a cost-reimbursement contract1 that results in at least two responsive and viable competing offerors2 and 7#b7 in paragraph 7#b71 by inserting based on adequate price competition that results in at least two responsive and responsible offers after commercial service4 7c7 ,conforming amendment related to civilian contracts ,section #cejc7;a77#b7 of title #da1 ,united ,states ,code is by inserting after commercial service the following3 based on adequate price competition that results in at least two responsive and responsible offers4 #c4 ,revision of definition of term commercial item for purposes of ,federal procurement statutes providing procedures for procurement of commercial items 7a7 ,elimination of of a type criterion ,section #ajc of title #da1 ,united ,states ,code1 is amended by striking of a type each place it appears4 7b7 ,elimination of items and services merely offered for sale1 lease1 or license 7#a7 ,items ,section #ajc7a77;,b7 of title #da1 ,united ,states ,code1 is amended by striking 1 or offered for sale1 lease1 or license14 7#b7 ,services ,section #ajc;a7#b7 of title #da1 ,united ,states ,code1 is amended by striking offered and4 #d4 ,progress payment incentive pilot 7a7 ,pilot program ,the ,secretary of ,defense1 acting through the ,under ,secretary of ,defense for ,acquisition and ,sustainment1 shall establish and implement a pilot program1 to be known as the ,progress ,payment ,incentive ,pilot ,program1 to make accelerated progress payments contingent upon responsiveness to ,department of ,defense goals for effectiveness1 efficiency1 and increasing small business contract opportunities4 7b7 ,purpose ,the purpose of the pilot program is to reward ,department of ,defense contractors who meet contract delivery dates1 respond to ,department solicitations for required certified cost or pricing data1 meet small business contracting goals1 and provide subcontracting opportunities for ,ability,one contracts4 7c7 ,progress payments 7#a7 ,limitations for large contractors ,except as provided under paragraph 7#b71 under the pilot program1 the ,department of ,defense may not award to large business contractors progress payments in excess of #ej percent4 7#b7 ,exceptions ,the ,department of ,defense may increase the rate of progress payments1 up to a total of #ie percent1 by the following percentages3 7,a7 #aj percent if the relevant division of the contractor met contract delivery dates for contract end items and contract data requirement lists or performance milestone schedule1 as the case may be1 at least #ie percent of the time during the preceding ,government fiscal year4 7,b7 #aj percent if the division does not have open level ,,iii or ,,iv corrective action requests4 7,c7 #g4e percent if all applicable contractor business systems are acceptable1 without significant deficiencies4 7,d7 #aj percent if at least #ie percent of the time during the preceding ,government fiscal year1 when responding to solicitations that required submission of certified cost or pricing data1 the division met the due date in the request for proposal4 7,e7 #e percent if the contractor discloses first tier subcontractor data1 the prime contractor's beneficial owners1 and total compensation for recipient executives4 7,f7 #e percent if the contractor has met its small business subcontracting goals during the preceding ,government fiscal year4 7,g7 #c percent if the contractor has provided subcontracting opportunities for the blind and severely disabled4 7d7 ,definitions ,in this section3 7#a7 ,beneficial owners ,the term beneficial owner has the meaning given the term in section #hdg of the ,national ,defense ,authorization ,act for ,fiscal ,year #bjbj 7,public ,law #aaf-ib2 #acc ,stat4 #aeje2 #aj ,u4,s4,c4 #beji note74 7#b7 ,compensation for recipient executives ,the term compensation for recipient executives refers to the names and total compensation of the five most highly compensated officers of the entity pursuant to section #b7;b77#a7 of the ,federal ,funding ,accountability and ,transparency ,act of #bjjf 7,public ,law #aji-bhb2 #ca ,u4,s4,c4 #faja note74 7#c7 ,first tier subcontractor ,the term first tier subcontractor means a subcontractor who has a subcontract directly with the prime contractor4 7#d7 ,large defense contractor ,the term large defense contractor means a contractor 7other than an institute of higher education or a federally funded research and development center7 that received more than #aj1jjj1jjj in annual revenue from the ,department of ,defense contracts or licenses in any of the previous three years4 7#e7 ,progress payments ,the term progress payments means payments provided for under section #chjd of title #aj1 ,united ,states ,code4 #e4 ,disclosure by large defense contractors 7a7 ,annual reporting ,not later than #fj days after the date of the enactment of this ,act1 the ,secretary of ,defense shall amend the ,department of ,defense ,supplement to the ,federal ,acquisition ,regulation to provide that large defense contractors shall be required to annually report to the ,under ,secretary of ,defense for ,acquisition and ,sustainment the following information with regard to the covered year1 as compared with the year preceding that covered year3 7#a7 ,the percentage change in the volume of goods or services sold and the percentage change in the average sales price of those goods or services1 which shall be broken down by material product categories1 when relevant1 and presented in a tabular format4 7#b7 ,the gross margins of the large defense contractor1 which shall be broken down by material product categories1 when relevant1 and presented in a tabular format4 7#c7 ,presented in tabular format1 the share of the increase in revenue of the large defense contractor that is attributable to-- 7,a7 a change in the cost of goods or services sold by the large defense contractor2 and 7,b7 a change in the volume of goods or services sold by the large defense contractor4 7#d7 ,the percentage change in the costs of the large defense contractor1 which shall be broken down by category and presented in tabular format4 7#e7 ,in dollars1 the change in the costs of the large defense contractor1 which shall be presented in tabular format4 7#f7 ,a detailed narrative disclosure of the pricing strategy of the large defense contractor1 which shall include-- 7,a7 an explanation for any increase in the gross margins of material product categories1 including-- 7i7 all material causes for such an increase2 7ii7 an explanation of how each such material cause affected such an increase2 and 7iii7 a description of the relative importance of each such material cause with respect to such an increase2 7,b7 an explanation for the decisions made by the large defense contractor with respect to the prices of goods and services sold by the large defense contractor2 7,c7 if the large defense contractor increased prices at a rate that was greater than the rate at which the costs incurred by the large defense contractor increased1 the rationale and objectives for increasing prices in such a manner2 and 7,d7 a description of conditions under which the large defense contractor plans to modify pricing after the date on which the large defense contractor submits the report4 7b7 ,publication ,the ,under ,secretary of ,defense for ,acquisition and ,sustainment shall annually publish on a publicly available internet website the previous year's reports received under subsection 7a74 7c7 ,penalties ,a knowing failure to disclose or update information in accordance with subsection 7a7 may result in-- 7#a7 entry of the violation in the database for ,federal agency contract and grant officers and suspension and debarment officials defined in section #bcac of title #da1 ,united ,states ,code2 7#b7 imprisonment for not more than #e years or a fine under title #ah1 ,united ,states ,code1 or both2 7#c7 a civil fine of not more than #bjj1jjj1 depending on the extent and gravity of the violation2 7#d7 liability pursuant to section #cgbi of title #ca1 ,united ,states ,code2 or 7#e7 suspension or debarment4 7d7 ,large defense contractor defined ,in this section1 the term large defense contractor means a contractor 7other than an institute of higher education or a federally funded research and development center7 that-- 7#a7 received more than #aj1jjj1jjj in annual revenue from the ,department of ,defense contracts or licenses in any of the previous three years2 and 7#b7 earned more than #bj percent of its total annual revenue from ,department of ,defense contracts or licenses in any of the previous three fiscal years4