Procurement Rules Get a Rewrite
The Senate $900B Defense Bill also drills down into acquisition policy. It directs Hegseth to revise the Defense Federal Acquisition Regulation Supplement to allow contracting officers to withhold up to 5% of payments to incumbent contractors who file bid protests at the Government Accountability Office over procurements involving similar goods or services.
If such a protest is dismissed as lacking any reasonable legal or factual basis, the withheld funds would be forfeited, according to Section 875.
Broader Contracting Flexibility
The legislation further orders the Pentagon to issue guidance on when it should credit a broader range of projects — including commercial or nongovernmental work — when evaluating past performance in contract proposals.
Another provision exempts products and services from nontraditional defense contractors from eight DFARS rules, as well as Federal Acquisition Regulation Part 31 cost principles and the statutory requirement to submit certified cost or pricing data.
As the Senate $900B Defense Bill advances to the White House, it stands as both a financial juggernaut and a policy lever — funding the future force while tugging the Pentagon toward greater transparency and procurement reform.
