A bill to provide for the use of capability-based analysis of price of goods or services offered by nontraditional defense contractors.

This bill creates a temporary pilot program (2024-2029) allowing the U.S. Department of Defense to use "capability-based analysis" when evaluating prices from nontraditional defense contractors - companies that typically don’t work with the military but may offer innovative technology. Instead of standard price reviews, contracting officers can assess proposals based on factors like the product’s fit for military needs, the contractor’s unique expertise, business model, and potential long-term cost savings. The program requires a detailed report by 2028 to evaluate its success in boosting contractor participation and access to new capabilities, with the authority set to expire on September 30, 2029.