S. 2139: Procurement Reform for Immediate Military Equipment Act

The Procurement Reform for Immediate Military Equipment Act, also known as the PRIME Act, proposes changes to the way the U.S. military procures experimental equipment and supplies. The main objectives of this bill include:

1. Expedited Procurement for Experimental Purposes

The bill aims to streamline the procurement process for defense-related items by modifying existing laws. It expands the category of items eligible for expedited procurement to include:

• Demonstrations
• Prototypes
• Products
• Supplies
• Parts
• Accessories
• Auxiliary services
• Designs for defense-related articles

2. Flexibility in Procurement Processes

The legislation introduces more flexibility in the procurement process by allowing modifications to purchase agreements. This includes enabling prototyping of equipment that may be deemed necessary without extensive justification or competitive procurement procedures.

3. Follow-On Production Contracts

The bill permits the military to enter into follow-on production contracts without needing to undergo competitive procedures if certain conditions are met. Specifically, if a combatant command determines in writing that an experimental item has successfully completed testing and plans to implement it, they can proceed with follow-on purchases without additional competitive justification.

4. Summary of Changes to Legal Text

The bill proposes amendments to Section 4023 of Title 10 of the United States Code, which are critical for the implementation of these expedited practices. The modifications include:

• Removing specific examples of supplies and items to broaden the scope for procurement.
• Allowing the use of modified items within the procurement process.
• Facilitating the creation of follow-on contracts based on successful experimental outcomes.

Relevant Companies

• BA (Boeing) - As a major defense contractor, Boeing may see increased opportunities for contracts related to experimental military equipment.
• LMT (Lockheed Martin) - Lockheed Martin could benefit from expedited procurement processes for prototypes and new defense products.
• NOC (Northrop Grumman) - Northrop Grumman might be involved in the rapid development and production of new defense technologies and equipment due to relaxed procurement rules.