Transparency in Contracting Act of 2025
Summary
The Transparency in Contracting Act of 2025 aims to increase transparency in government contracting by requiring contractors to report significant price increases on noncompetitive contracts. It mandates reporting when prices exceed 25% above the original bid or the previous year's price, or 50% above the price five years prior. The bill also includes provisions for reporting noncompliance to the Federal Awardee Performance and Integrity Information System (FAPIIS).
Expected Effects
This act will likely lead to greater scrutiny of noncompetitive contracts and potentially deter unjustified price increases. By making price increases more visible, the government may be able to negotiate better contract terms and reduce wasteful spending. The public will have more insight into how taxpayer money is being spent on government contracts.
Potential Benefits
- Increased transparency in government contracting.
- Potential for reduced wasteful spending through greater scrutiny of price increases.
- Improved accountability for contractors.
- Enhanced ability for the government to negotiate fair contract terms.
- Greater public awareness of how taxpayer money is spent.
Most Benefited Areas:
Potential Disadvantages
- Increased administrative burden for contractors, potentially leading to higher contract costs.
- Potential for delays in contract execution due to reporting requirements.
- Risk of misinterpretation of price increases, leading to unnecessary investigations.
- Possible chilling effect on contractor participation in noncompetitive contracts.
- The act focuses solely on price increases, potentially overlooking other areas of contract mismanagement.
Constitutional Alignment
The act aligns with the principle of government transparency and accountability, which are implicit in the Constitution's emphasis on a government of the people. While the Constitution does not explicitly address government contracting, the act supports the general welfare by promoting efficient use of taxpayer funds. Article I, Section 9, Clause 7, which requires a regular Statement and Account of the Receipts and Expenditures of all public Money, aligns with the intention of this act.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).