New Provisions in Defense Authorization Act Relating to the Production on Demand of Cost and Pricing Data by Commercial Suppliers

On December 20, 2019, President Trump signed into law the National Defense Authorization Act (NDAA) for Fiscal Year 2020 (NDAA), which authorizes appropriations and sets forth policies for Department of Defense (DOD) programs and activities. In Title VIII of the bill, on “Acquisition Policy, Acquisition Management, and Related Matters,” provisions address policies associated with the DOD’s procurement of commercial products and services, specifically requirements associated with how the DOD must establish the fairness and reasonableness of offered prices, including the need for commercial suppliers to provide the DOD with cost and pricing data. This alert discusses what changes in law (if any) regarding this requirement result from the newly signed NDAA.