The commercial shortcut goes through every ERP.
A DoD pricing directive invokes commercial best practices while seeking actual costs across every supplier tier and exploring direct financial-system APIs.
What happened
An August 18 memorandum from the Deputy Secretary of War reset the department's expectations for supplier cost and pricing information. It directed full transparency throughout all tiers of the supply chain for products and services valued at $10 million or more, regardless of whether the data require certification, and said contracting officers must have actual cost information at prime and supplier levels. Commercially available off-the-shelf items are excepted.
The memorandum said the department will explore application programming interfaces that pull cost information directly from contractor enterprise resource planning or other financial systems to reduce regulatory burden and compliance cost. It also directed submission of thousands of delinquent Cost and Software Data Reporting reports within 30 days. On August 26, Federal News Network reported industry concern that the approach could create new barriers for commercial and lower-tier suppliers.
Why CMCoE cares
The directive reaches price analysis, subcontractor flowdown, commercial-item strategy, financial-system access, cybersecurity, and negotiation leverage. Acquisition teams will need to distinguish the policy objective from the contractual authority and implementation mechanism that would actually obtain data from each tier.
Regulatory fine print
The memorandum is a department policy directive, not a final FAR or DFARS rule and not by itself a new contract clause or system-access right. It directs the acquisition office to explore an automated solution and update underlying issuances and regulations. It exempts COTS items, does not clearly resolve application to existing contracts, and does not establish that the approach is unlawful. The August 26 industry reaction is secondary reporting; the signed memorandum is the underlying source.
Sources
- Deputy Secretary memorandum - Supplier Cost and Pricing Transparency (Office of the Deputy Secretary of War, copy hosted by Federal News Network, )
- Federal News Network - Industry concerns about DoD acquisition reforms (Federal News Network, )