Stop Pentagon Price Gouging Act

The Stop Pentagon Price Gouging Act (S 2049) requires major defense contractors to annually report detailed pricing data to the Pentagon, including changes in sales volume, gross margins, and cost drivers. It mandates that contractors disclose how price increases relate to cost changes or sales volume, with specific tabular formats for transparency. The bill also creates a pilot program offering accelerated progress payments (up to 80-95%) to contractors who promptly provide certified cost data during negotiations. These provisions target "traditional defense contractors" (defined as firms with specific Pentagon contracts under cost accounting rules) to improve price transparency and prevent excessive pricing in defense procurement.