,,ii  #aah? ,,congress  #a/ ,session    
,s4 #bjdi  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,june #bj1 #bjbc,ms4   
,w>r5 7= h]self & ,mr4 ,braun7 introduc$
 ! foll[+ bill2 :i* 0 read twice &      
ref]r$ to ! ,committee on ,arm$ ,s]vices
  ,a ,,bill  ,to prev5t price g\g+ at ! 
,dep>tm5t ( ,def5se4  #a4 ,%ort title   
,?is ,act may be cit$ z ! ,/op ,p5tagon 
,price ,g\g+ ,act4  #b4 ,/r5g!n+ ,tru? 9
 ,negotiations ,act provisions  7a7     
,requir$ co/ or pric+ data &            
c]tification ,section #cgjb7;a77#a7 (   
title #aj1 ,unit$ ,/ates ,code1 is am5d$
 by /rik+ only expect$ to receive "o bid
 %all be requir$ & replac+ ) only       
expect$ to h "o (f]or1 or = :i* aw>d ( a
 co/-reimbursem5t contract is           
contemplat$ reg>dless ( ! numb] ( (f]s  
receiv$1 %all be requir$4  7b7          
,exceptions ,section #cgjc7;a7 ( title  
#aj1 ,unit$ ,/ates ,code1 is am5d$--    
7#a7 9 p>agraph 7#a77;,a71 by /rik+     
adequate competition & all t foll[s     
?r\gh bids & ins]t+ adequate price      

competition = o!r ?an ! aw>d ( a        
co/-reimbursem5t contract t results 9 at
 lea/ two responsive & viable compet+   
(f]ors2 &  7#b7 9 p>agraph 7#b71 by     
ins]t+ bas$ on adequate price           
competition t results 9 at lea/ two     
responsive & responsible (f]s aft]      
comm]cial s]vice4  7c7 ,con=m+ am5dm5t  
relat$ to civilian contracts ,section   
#cejc7;a77#b7 ( title #da1 ,unit$ ,/ates
 ,code1 is by ins]t+ aft] comm]cial     
s]vice ! foll[+3 bas$ on adequate price 
competition t results 9 at lea/ two     
responsive & responsible (f]s4  #c4     
,revision ( def9ition ( t]m comm]cial   
item = purposes ( ,f$]al procurem5t     
/atutes provid+ proc$ures = procurem5t (
 comm]cial items  7a7 ,elim9ation ( ( a 
type crit]ion ,section #ajc ( title #da1
 ,unit$ ,/ates ,code1 is am5d$ by /rik+ 
( a type ea* place x appe>s4  7b7       
,elim9ation ( items & s]vices m]ely (f]$
 = sale1 lease1 or lic5se  7#a7 ,items  
,section #ajc7a77;,b7 ( title #da1      
,unit$ ,/ates ,code1 is am5d$ by /rik+ 1

 or (f]$ = sale1 lease1 or lic5se14     
7#b7 ,s]vices ,section #ajc;a7#b7 (     
title #da1 ,unit$ ,/ates ,code1 is am5d$
 by /rik+ (f]$ &4  7c7 ,adju/m5t (      
?re%old relat+ to prior sales  7#a7     
,comm]cial products ,section            
#ajc7f77;,b7 ( title #da1 ,unit$ ,/ates 
,code1 is am5d$ by /rik+ sub/antial     
quantities & ins]t+ l quantities4  7#b7 
,comm]cial s]vices ,section #ajc;a7#b7 (
 title #da1 ,unit$ ,/ates ,code1 is     
am5d$ by /rik+ sub/antial quantities &  
ins]t+ l quantities4  #d4 ,progress     
paym5t inc5tive pilot  7a7 ,pilot       
program ,! ,secret>y ( ,def5se1 act+    
?r\gh ! ,"u ,secret>y ( ,def5se =       
,acquisition & ,su/a9m5t1 %all e/abli% &
 implem5t a pilot program1 to be kn[n z 
! ,progress ,paym5t ,inc5tive ,pilot    
,program1 to make accel]at$ progress    
paym5ts cont+5t ^u responsiv5ess to     
,dep>tm5t ( ,def5se reque/s = co/ or    
pric+ in=mation4  7b7 ,purpose ,!       
purpose ( ! pilot program is to rew>d   
,dep>tm5t ( ,def5se contractors :o "w ) 

! ,dep>tm5t 9 ! pre-aw>d process to     
prev5t excessive co/s & e/abli%         
gu>drails aga9/ excessive prices4  7c7  
,progress paym5ts  7#a7 ,limitations =  
traditional contractors ,"u ! pilot     
program1 ! ,dep>tm5t ( ,def5se may n    
aw>d to traditional bus9ess contractors 
progress paym5ts 9 excess ( #ej p]c5t4  
7#b7 ,exceptions ,! ,dep>tm5t ( ,def5se 
may increase ! rate ( progress paym5ts  
to #hj p]c5t if ! division ( ! company  
provides c]tifi$ co/ or pric+ in=mation 
)9 #cj days ( ! ,dep>tm5t's reque/ = !  
in=mation4 ,! progress paym5t rate may n
 exce$ #ie p]c5t4  7d7 ,def9itions ,9   
?is section3 7#a7 ,traditional def5se   
contractor ,! t]m traditional def5se    
contractor means a contractor 7o!r ?an  
an in/itute ( high] education7 t is     
curr5tly p]=m+ or has curr5tly p]=m$ =  
at lea/ ! "o-ye> p]iod prec$+ !         
solicitation ( s\rces by ! ,dep>tm5t (  
,def5se = ! procurem5t or transaction1  
any contract or subcontract = !         
,dep>tm5t ( ,def5se t is subject to full

 cov]age "u ! co/ acc\nt+ /&>ds         
prescrib$ pursuant to section #aejb (   
title #da1 ,unit$ ,/ates ,code1 & !     
regulations implem5t+ su* section4  7#b7
 ,progress paym5ts ,! t]m progress      
paym5ts means paym5ts provid$ = "u      
section #chjd ( title #aj1 ,unit$ ,/ates
 ,code4  #e4 ,disclosure by traditional 
def5se contractors  7a7 ,annual report+ 
,n lat] ?an #fj days aft] ! date ( !    
enactm5t ( ?is ,act1 ! ,secret>y (      
,def5se %all am5d ! ,dep>tm5t ( ,def5se 
,supplem5t to ! ,f$]al ,acquisition     
,regulation to provide t traditional    
contractors %all be requir$ to annually 
report to ! ,"u ,secret>y ( ,def5se =   
,acquisition & ,su/a9m5t ! foll[+       
in=mation ) reg>d to ! cov]$ ye>1 z     
comp>$ ) ! ye> prec$+ t cov]$ ye>3 7#a7 
,! p]c5tage *ange 9 ! volume ( goods or 
s]vices sold & ! p]c5tage *ange 9 !     
av]age sales price ( ^? goods or        
s]vices1 :i* %all be brok5 d[n by       
mat]ial product categories1 :5 relevant1
 & pres5t$ 9 a tabul> =mat4  7#b7 ,!    

gross m>g9s ( ! traditional contractor1 
:i* %all be brok5 d[n by mat]ial product
 categories1 :5 relevant1 & pres5t$ 9 a 
tabul> =mat4  7#c7 ,pres5t$ 9 tabul>    
=mat1 ! %>e ( ! increase 9 rev5ue ( !   
l>ge def5se contractor t is attributable
 to-- 7,a7 a *ange 9 ! co/ ( goods or   
s]vices sold by ! traditional def5se    
contractor2 &  7,b7 a *ange 9 ! volume (
 goods or s]vices sold by ! cov]$ issu]4
  7#d7 ,! p]c5tage *ange 9 ! co/s ( !   
traditional contractor1 :i* %all be     
brok5 d[n by category & pres5t$ 9 tabul>
 =mat4  7#e7 ,9 doll>s1 ! *ange 9 ! co/s
 ( ! traditional def5se contractor1 :i* 
%all be pres5t$ 9 tabul> =mat4  7#f7 ,a 
detail$ n>rative disclosure ( ! pric+   
/rategy ( ! traditional def5se          
contractor1 :i* %all include-- 7,a7 an  
explanation = any increase 9 ! gross    
m>g9s ( mat]ial product categories1     
includ+-- 7i7 all mat]ial causes = su*  
an increase2  7ii7 an explanation ( h[  
ea* su* mat]ial cause affect$ su* an    
increase2 &  7iii7 a description ( !    

relative importance ( ea* su* mat]ial   
cause ) respect to su* an increase4     
7,b7 ,an explanation = ! decisions made 
by ! traditional def5se contractor )    
respect to ! prices ( goods & s]vices   
sold by ! l>ge def5se contractor4  7,c7 
,if ! l>ge def5se contractor increas$   
prices at a rate t 0 great] ?an ! rate  
at :i* ! co/s incurr$ by ! traditional  
def5se contractor increas$1 ! rationale 
& objectives = increas+ prices 9 su* a  
mann]4  7,d7 ,a description ( conditions
 "u :i* ! l>ge def5se contractor plans  
to modify pric+ aft] ! date on :i* !    
traditional def5se contractor submits ! 
report4  7b7 ,publication ,! ,"u        
,secret>y ( ,def5se = ,acquisition &    
,su/a9m5t %all annually publi% on a     
publicly available int]net website !    
previ\s ye>'s reports receiv$ "u        
subsection 7a74  7c7 ,traditional       
contractor def9$ ,9 ?is section1 ! t]m  
traditional contractor means a          
contractor 7o!r ?an an in/itute ( high] 
education7 t is curr5tly p]=m+ or has   

curr5tly p]=m$ = at lea/ ! "o-ye> p]iod 
prec$+ ! solicitation ( s\rces by !     
,dep>tm5t ( ,def5se = ! procurem5t or   
transaction ( any contract or           
subcontract = ! ,dep>tm5t ( ,def5se t is
 subject to full cov]age "u ! co/       
acc\nt+ /&>ds prescrib$ pursuant to     
section #aejb ( title #da1 ,unit$ ,/ates
 ,code1 & ! regulations implem5t+ su*   
section4