“To amend title 10, United States Code, to eliminate the late cost and pricing data submission defense, and for other purposes.”
No CRS summary available for this bill.
This section adds a new exception under 10 U.S.C. §3706(c) to the Department of Defense's recovery of contract overpayments attributable to defective cost or pricing data submitted by prime contractors or subcontractors. (As background, the Truthful Cost or Pricing Data Act requires such data for negotiated contracts above the Truthful Cost or Pricing Data threshold—$2 million as of 2024—to prevent inflated prices; absent an exception, the government may reduce the price and recover the overpayment.) The new exception applies if updates to the data, submitted after the contract (or modification) price agreement date—or another date agreed under subsection (a)(2)—were based on data more than 30 days old. (Thus, this eliminates any defense for late submission of updates based on data 30 days old or newer.)