Pentagon Orders Contractors to Submit Real Cost Data Amid Push for Fair Pricing
Deputy Secretary of Defense Steve Feinberg issued a memo telling Pentagon contracting officers to collect certified cost information from weapons makers to ensure contracts are priced fairly.
In a shift from the White House’s recent hands-off approach, Deputy Secretary of Defense Steve Feinberg sent out a memorandum directing contracting officers to obtain certified cost and pricing data from defense suppliers. The policy change counters 2025 executive orders that stripped away many procurement safeguards and a fiscal-year-2026 defense authorization that lifted the reporting threshold from $2.5 million to $10 million.
Critics had claimed the rules would impose heavy compliance costs on smaller firms, yet audits have repeatedly uncovered significant overcharges by large contractors such as TransDigm Group, Lockheed Martin and Boeing. Earlier investigations by the Defense Inspector General and Pentagon analysts revealed profit margins on some contracts approaching 40 percent, prompting renegotiations that saved hundreds of millions. By demanding accurate cost data, the Pentagon aims to identify and eliminate excessive profit claims and ensure fair pricing for future contracts.
Why it matters
Requiring real cost data could stop wasteful spending on defense contracts and protect taxpayers.
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