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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5553 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  2d Session
                                S. 5553

 To provide for the use of capability-based analysis of price of goods 
       or services offered by nontraditional defense contractors.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

            December 17 (legislative day, December 16), 2024

  Mr. Cornyn introduced the following bill; which was read twice and 
              referred to the Committee on Armed Services

_______________________________________________________________________

                                 A BILL

 
 To provide for the use of capability-based analysis of price of goods 
       or services offered by nontraditional defense contractors.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. USE OF CAPABILITY-BASED ANALYSIS OF PRICE OF GOODS OR 
              SERVICES OFFERED BY NONTRADITIONAL DEFENSE CONTRACTORS.

    (a) Pilot Program.--A contracting officer of the Department of 
Defense may use alternative capability-based analysis to determine 
whether the proposed price or fee for a commercial product or 
commercial service offered by a nontraditional defense contractor (as 
that term is defined in section 3014 of title 10, United States Code) 
is fair and reasonable.
    (b) Report.--Not later than February 1, 2028, the Under Secretary 
of Defense for Acquisition and Sustainment shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives a report evaluating the use of the authority under 
subsection (a), including the following elements:
            (1) A summary of activities conducted because of the 
        inclusion of alternative capability-based analysis into the 
        evaluation of proposals offered by nontraditional contractors, 
        including specific examples.
            (2) An analysis of the effectiveness of the authority under 
        subsection (a) in increasing nontraditional defense contractor 
        participation in the defense industrial base and in increasing 
        access by the Department of Defense to new technologies or 
        capabilities.
            (3) Recommendations on--
                    (A) the continuation of the authority under 
                subsection (a);
                    (B) changes to existing law; and
                    (C) the expansion of the program to include other 
                contractors.
    (c) Sunset.--The authority under subsection (a) shall expire on 
September 30, 2029.
    (d) Alternative Capacity-Based Analysis Defined.--In this section, 
the term ``alternative capability-based analysis'' means an analysis of 
the value to the Federal Government of a commercial product or 
commercial service that considers one or more of the following 
elements:
             (1) The fitness of the product or service for the 
        particular purpose such commercial product or commercial 
        service is being procured.
            (2) The unique nature of, technical expertise required to 
        produce or provide, and the non-Federal resources expended to 
        develop such commercial product or commercial service.
            (3) The business model or financial projections of the 
        nontraditional defense contractor, commensurate with the scale 
        of the potential investment by the Secretary of Defense, which 
        may include cost information, self-funded risk, financial 
        projections, expenditure rates, estimates of total sales 
        market, and other financial, technical, or management data.
            (4) The estimated total cost avoidance or increased 
        capacity afforded by such commercial product or commercial 
        service in relation to current and future costs of programs and 
        operations that provide the same or similar capabilities.
            (5) Input from the anticipated users of such commercial 
        product or commercial service on the potential value added by 
        the improved capabilities or production processes resulting 
        from such commercial product or commercial service.
                                 <all>
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