S. 2809: Transparency in Contracting Act of 2025 (119th Congress) Bill Summary

This bill, known as the Transparency in Contracting Act of 2025, aims to enhance transparency in government contracting, particularly regarding price increases on noncompetitive contracts. Here is a breakdown of its key provisions:

Price Increase Reporting

The bill establishes a requirement for contractors to report price increases on covered contracts. Specifically, contractors must notify the relevant contracting officer within 30 days if they become aware that the price of a product or service under a contract:

Increases by 25% above the price specified in the contract bid or the price the government paid the previous calendar year, or
Increases by 50% above the price paid for that product or service five years earlier.

Definition of Covered Contracts

Covered contracts refer to those awarded without competition, as defined by U.S. law. This typically pertains to situations where contracts are awarded directly to a single source rather than through a bidding process.

Noncompliance Information

The bill also addresses the reporting of noncompliance by contractors. Information concerning contractors that fail to report the required price increases will be included in the Federal Awardee Performance and Integrity Information System (FAPIIS). This system tracks performance and integrity information regarding federal contractors.

The Director of the Defense Contract Audit Agency, or relevant service acquisition executive, will include the following in FAPIIS:

Names of contractors who fail to report price increases as mandated.
Results from audits regarding the contractors' compliance with reporting requirements.
Details about unreported price increases, including the product's National Stock Number, order quantity, unit cost, total cost, and relevant dates.

Purpose of the Bill

The overall purpose of the Transparency in Contracting Act of 2025 is to improve accountability in federal contracting processes by ensuring that significant price changes are reported, thus enabling better oversight and management of taxpayer dollars.