Bill 118 s 5553, also known as the Capability-Based Analysis of Price of Goods or Services Offered by Nontraditional Defense Contractors Act, aims to improve the way the Department of Defense evaluates the prices of goods and services provided by nontraditional defense contractors. Nontraditional defense contractors are companies that do not typically work with the Department of Defense but may offer unique capabilities that could be beneficial to national security.
The bill proposes the use of capability-based analysis to determine the fair and reasonable prices for goods and services offered by these nontraditional defense contractors. This type of analysis takes into account the specific capabilities and expertise of the contractor, rather than relying solely on traditional pricing models.
By utilizing capability-based analysis, the Department of Defense hopes to better assess the value and cost-effectiveness of working with nontraditional defense contractors. This could lead to more efficient and cost-effective procurement processes, as well as potentially opening up opportunities for smaller or less established companies to contribute to national defense efforts.
Overall, Bill 118 s 5553 seeks to modernize and improve the way the Department of Defense evaluates and procures goods and services from nontraditional defense contractors, ultimately enhancing national security capabilities.