$500,000 Threshold for DOD Cost and Pricing Data

Maintain the $500,000 threshold for cost and pricing data requirements
for DOD.

The Truth in Negotiations Act should be amended to maintain the dollar
threshold for application of the statute at $500,000.9 All words in the
statute that refer to the threshold reverting to $100,000 after December
31, 1995, should be eliminated, and section 803 of the National Defense
Authorization Act should be repealed.10 The amendment should also
provide for periodic adjustment of the threshold to reflect inflation.
The permanent increase in the threshold would allow DOD, NASA, and the
Coast Guard to maintain the administrative savings and lower contract
costs that result from the higher threshold.

Endnotes

9. 10 U.S.C. 2306a.

10. National Defense Authorization Act, Fiscal Year 1991 (Public Law
101510).