New bipartisan bill cracks down on contractor price gouging

Source FEDNEWSNETWORK

Countless watchdog reports have found that defense contractors overcharge the military for spare parts. Now, lawmakers are pushing a new bill that seeks to curb price gouging on sole-source contracts awarded without competitive bidding.

The legislation, dubbed the “Transparency in Contract Pricing Act of 2025,” requires contractors to notify the Defense Department if the cost of a product or service increases by more than 25% from the agreed contract bid or from what the government paid for the item in the previous calendar year.

In addition, contractors must notify the government if the price is 50% higher than what the government has paid for the same item in the last five years.

“As part of my war on waste, I am exposing all price-gouging attempts at the Pentagon. You cannot stop what you cannot see. With the additional clarity of knowing where the bloated contracts are, our armed forces will be able to identify and eliminate wasteful spending to increase efficiency and better equip our warfighters,” Sen. Joni Ernst (R-Iowa), one of the bill’s sponsors, said in a statement.

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