A new DoD policy memo demands more data to support the prices the military pays for spare parts. But it only applies to one company.
The company previously indicated an unwillingness to issue the refunds, saying that doing so could amount to an admission of wrongdoing.
The Pentagon has launched a new data gathering effort to try to detect sole-source vendors who are making excess profits by hiding their cost data from contracting officers.
An audit of a sample of DoD’s contracts with Transdigm found half the company’s earnings were “excess” profit, but the inspector general said the findings highlight a need for broad policy changes.
The Defense Department wants the contracting community to embrace a new policy that could upend the annual procurement cycle for major weapons systems.
The Pentagon wants vendors to take no more than two months to develop their final proposals when purchasing its weapons systems.
Borrowing from an existing exemption for foreign military sales, DoD wants more flexibility to waive its requirement for vendors to supply cost and pricing data in domestic procurements.