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This bill establishes a pilot program allowing the Department of Defense to use alternative capability-based analysis when evaluating prices proposed by nontraditional defense contractors for commercial products or services. Rather than relying solely on traditional cost-based pricing methods, contracting officers may consider factors such as product fitness for purpose, technical expertise required, business models, cost avoidance, and user input. The program expires September 30, 2029, and requires a report to Congress by February 1, 2028, assessing the program's effectiveness in increasing nontraditional contractor participation and access to new technologies.
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