Transparency in Contracting Act of 2025
The Transparency in Contracting Act of 2025 would require reporting of large price increases on noncompetitive defense contracts. Specifically, if a product or service under a covered (sole-source) contract reaches or exceeds certain price thresholds, the offeror must notify the contracting officer within 30 days of awareness. The thresholds are: (1) 25 percent above the price specified in the contract bid or the government-paid price for the previous calendar year, or (2) 50 percent above the price paid for the product or service five years earlier. In addition, the bill would require that information about noncompliance be entered into the Federal Awardee Performance and Integrity Information System (FAPIIS), including details about unreported price increases and related audit findings. The intent is to increase transparency and oversight of noncompetitive contracting to curb improper price increases.
Key Points
- 1Targets noncompetitive contracts only (contracts awarded without competition under 10 U.S.C. 3204 and as defined by FAR 6.302).
- 2Reporting obligation: offerors must report to the relevant contracting officer within 30 days of awareness when prices reach either 25% above the contract/bid or government price from the prior year, or 50% above prices paid five years earlier.
- 3The term “covered contract” is defined to clarify what contracts trigger the reporting requirement.
- 4Noncompliance reporting: DoD or service acquisition executives must include noncompliance information in FAPIIS, flagging contractors who fail to report as required and updating audit findings.
- 5Data to be recorded for unreported price increases includes the product/service NSN, order quantity, unit cost, total cost, purchasing/reimbursing entity, and order date.