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Business/Financial

DoD Bill Limits Cost-Type Contracts

Julie Samuel

Thursday, December 20th, 2012

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Congress is putting the final touches on legislation that would limit the Pentagon’s ability to award cost-type contracts to defense companies. The measure, in the final House-Senate defense authorization bill unveiled Tuesday, is a slightly-modified version of contracting limitations Sen. Claire McCaskill (D-Mo.) added to an earlier version of the legislation. House and Senate negotiators agreed to the contracting limitations not long after the Pentagon recognized, in its revised Better Buying Power guidance, that varied types of business deals--including cost-type…

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