WASHINGTON ― The U.S. House of Representatives’ Oversight Committee Chairwoman Carolyn Maloney (D-NY) proposed legislation Jan. 19 to force government contractors to publicly disclose data about their costs in a move to assist the government to negotiate better deals for spare parts. “(E)nough is enough,” she said at hearing on findings of the Pentagon’s inspector general that indicated $20.8M overpayments for commercial/military aircraft parts from the Cleveland-based manufacturer TransDigm Group. The legislation would require firms to provide uncertified cost data when government contracting officers need it to determine whether prices are fair and reasonable. The bill, released as a discussion draft, would apply to government-wide contracts, starting a year after enactment. The proposed legislation has the support of the Pentagon. Access to cost data would give contracting officers a better chance to negotiate fair and reasonable prices, a DoD exec told the panel. The defense industry’s reception is expected to be less supportive. The audit found TransDigm made excess profit on 105 spare parts through 150 contracts. TransDigm executives argue they’ve broken no laws/rules and the IG’s acceptable profit of 15% was “arbitrary.” The company hasn’t decided whether to pay it back. Democrats admonished TransDigm. The panel’s Republicans argued the firm was singled out. Rep. James Comer (R-Ky.) called for DoD to better consolidate its orders, keep more spare parts and leverage information technology. The focus should be on making government more efficient, he continued, and not about placing more burdens on American businesses. (Source: Defense News 01/19/22) New bill aims to cut the price of spare parts for DoD (defensenews.com)
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