On Tuesday, U.S. Sen. Gary Peters (D-MI) chair of the Homeland Security and Governmental Affairs Committee, introduced legislation to prevent defense contracting waste and fraud.
The legislation, Denial Reporting in the Federal Awardee Performance and Integrity Information System Act, would update U.S. Department of Defense contracting guidelines and require reporting when contractors fail to provide data justifying contract costs. The legislation would also note the contractors’ failure in the Federal Awardee Performance and Integrity Information System.
Currently, contractors do not face punishment or pressure to provide cost information to the DoD. Peters said his bill would increase transparency and compliance by creating incentives for contractors to provide information proving that contract prices are fair.
“Current Department of Defense contracting standards create the opportunity for companies to withhold cost data from the agency without the risk of being denied future contracts,” Peters said. “My legislation will increase transparency and compliance across Department of Defense contracting by providing the agency with more tools to secure fair contract prices and put pressure on companies to provide the requested data.”
According to Peters’ office, reports to Congress from the DoD show that between 2021 and 2023, incidents of contractors failing to provide cost and pricing data increased, and that contractors did not face any consequences as a result. DoD awards an estimated $200 billion in contracts every year without competition, which means the department must rely on data from contractors to determine if prices are reasonable.
Peters said the legislation would discourage companies from denying cost data when requested, and would note in their performance records if they fail to do so, which could impact their ability to get future contracts.