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House Passes Rep. Doggett’s Bipartisan NDAA Amendment to Ensure Fair Pricing in Defense Contracts

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June 14, 2024

Prompted by 60 Minutes Reporting: Mass consolidation of the defense industry has led to unfair price gouging, threatening military readiness and wasting American taxpayer dollars.

Contact: Alexis.Torres@mail.house.gov(link is external)

Washington, D.C.—Today, the House passed the 2025 National Defense Authorization Act (NDAA), which included an amendment from U.S. Representative Lloyd Doggett (D-Texas), a senior member of the House Ways and Means Committee, that would protect taxpayers by ensuring fair and reasonable pricing in Department of Defense (DoD) contracts.

To ensure the United States has a strong military to meet the multiple challenges we face around the globe and that taxpayer dollars are fully utilized, Rep. Doggett’s Fair Pricing Oversight Amendmentestablishes a six-person panel of procurement experts to review contracts for major weapons systems, spare parts, and services to determine whether the DoD paid fair and reasonable prices and to ensure the sufficiency of contracting processes moving forward.

“Price gouging American taxpayers ultimately leaves our servicemembers with fewer resources and support needed to defend our national security,” said Rep. Doggett. “Defense contractors receive about half a trillion taxpayer dollars each year to equip our military. My modest amendment is one accountability check to ensure the federal government doesn’t overpay for goods and services and can make informed and reasonable decisions.”

Over the past 30 years, mass consolidation of defense contractors has led to monopolistic practices and increasing costs. During that time, the DoD has cut thousands of contract negotiator and watchdog positions, creating a culture at the Pentagon of less oversight, limited transparency, and too little accountability.

Last year, a troubling 60 Minutes(link is external) report exposed how some defense contractors have greatly overcharged American taxpayers and threatened military readiness, all while enjoying ballooning profits.

This is a small step toward greater accountability but much more action is needed. Rep. Doggett will continue engaging with colleagues, public interest advocates, and procurement experts to maintain a price gouging provision in the final version of the NDAA that will be eventually approved by House-Senate conferees. To watch Rep. Doggett’s remarks on the House floor, click here(link is external).

A fact sheet with more information on Rep. Doggett’s amendment and other efforts to strengthen the 2025 NDAA can be found here.