,,ii #aahth ,,congress #ast ,session ,s4 #bjdi ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,june #bj1 #bjbc,ms4 ,warren 7for herself and ,mr4 ,braun7 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 ,pentagon ,price ,gouging ,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 competition for other than the award of a cost-reimbursement contract 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 ,code1 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 7c7 ,adjustment of threshold relating to prior sales 7#a7 ,commercial products ,section #ajc7f77;,b7 of title #da1 ,united ,states ,code1 is amended by striking substantial quantities and inserting like quantities4 7#b7 ,commercial services ,section #ajc;a7#b7 of title #da1 ,united ,states ,code1 is amended by striking substantial quantities and inserting like quantities4 #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 requests for cost or pricing information4 7b7 ,purpose ,the purpose of the pilot program is to reward ,department of ,defense contractors who work with the ,department in the pre-award process to prevent excessive costs and establish guardrails against excessive prices4 7c7 ,progress payments 7#a7 ,limitations for traditional contractors ,under the pilot program1 the ,department of ,defense may not award to traditional business contractors progress payments in excess of #ej percent4 7#b7 ,exceptions ,the ,department of ,defense may increase the rate of progress payments to #hj percent if the division of the company provides certified cost or pricing information within #cj days of the ,department's request for the information4 ,the progress payment rate may not exceed #ie percent4 7d7 ,definitions ,in this section3 7#a7 ,traditional defense contractor ,the term traditional defense contractor means a contractor 7other than an institute of higher education7 that is currently performing or has currently performed for at least the one-year period preceding the solicitation of sources by the ,department of ,defense for the procurement or transaction1 any contract or subcontract for the ,department of ,defense that is subject to full coverage under the cost accounting standards prescribed pursuant to section #aejb of title #da1 ,united ,states ,code1 and the regulations implementing such section4 7#b7 ,progress payments ,the term progress payments means payments provided for under section #chjd of title #aj1 ,united ,states ,code4 #e4 ,disclosure by traditional 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 traditional 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 traditional 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 traditional defense contractor2 and 7,b7 a change in the volume of goods or services sold by the covered issuer4 7#d7 ,the percentage change in the costs of the traditional contractor1 which shall be broken down by category and presented in tabular format4 7#e7 ,in dollars1 the change in the costs of the traditional defense contractor1 which shall be presented in tabular format4 7#f7 ,a detailed narrative disclosure of the pricing strategy of the traditional 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 increase4 7,b7 ,an explanation for the decisions made by the traditional defense contractor with respect to the prices of goods and services sold by the large defense contractor4 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 traditional defense contractor increased1 the rationale and objectives for increasing prices in such a manner4 7,d7 ,a description of conditions under which the large defense contractor plans to modify pricing after the date on which the traditional 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 ,traditional contractor defined ,in this section1 the term traditional contractor means a contractor 7other than an institute of higher education7 that is currently performing or has currently performed for at least the one-year period preceding the solicitation of sources by the ,department of ,defense for the procurement or transaction of any contract or subcontract for the ,department of ,defense that is subject to full coverage under the cost accounting standards prescribed pursuant to section #aejb of title #da1 ,united ,states ,code1 and the regulations implementing such section4