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Rep. Mac Thornberry, Sen. Jim Inhofe Raise Concern Over DoD’s Contractor Payment Proposal

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The leaders of the House and Senate Armed Services Committees have asked the Defense Department to delay the implementation of a proposed rule that seeks to compensate contractors based on performance, Breaking Defense reported Tuesday.

“We should not make it harder to do business with the Department of Defense than it is to do business with other parts of government — and that’s exactly what this regulation does,” HASC Chairman Rep. Mac Thornberry (R-Texas) told reporters Tuesday.

Thornberry and SASC Chairman Sen. Jim Inhofe (R-Okla.) expressed their concerns over the proposed policy through a Sept. 24 letter sent to Deputy Defense Secretary Patrick Shanahan.

Ellen Lord, defense undersecretary for acquisition and sustainment, said in a recent interview that DoD plans to use performance payments as an incentive to contractors that meet the requirements under the proposed rule, which is slated for implementation later this year.

Thornberry said Congress has asked DoD to provide data on contractor payments.

“Let’s hold this off until we can all look at the facts, and then we’ll take a new look at what makes sense based on what the data shows,” he added.