Annual report on contract cancellations

(a) Report required (1) In general Not later than 10 days after the date on which the President submits a budget of the United States Government for each of fiscal years 2027 through 2031 to Congress pursuant to section 1105 of title 31, United States Code, the Secretary of Defense shall submit to the congressional defense committees a report on any cancellations of contracts during the preceding fiscal year. (2) Reporting on fiscal year 2025 cancellations The Secretary of Defense shall include in the first report submitted under paragraph (1) reporting on any cancellations of contracts during fiscal year 2025. (b) Elements The report required under subsection (a) shall include the following elements: (1) Identification of the Contract Line Item Number affected. (2) Total value of such Contract Line Item Number. (3) Total existing obligations against that Contract Line Item Number. (4) Any fee paid, if applicable, for cancelling the contract. (5) A brief justification of the rationale for cancellation, tagged by— (A) non-alignment with the priorities of the Secretary of Defense; (B) requirement no longer exists; (C) requirement has decreased; (D) requirement exists, but the contract did not meet requirements for cost or the schedule or performance are unacceptable; or (E) any other rationale as determined by the Secretary. (6) For any Contract Line Item Number tagged pursuant to paragraph (5)(E), a brief proposed timeline for issuing a new contract to meet the specified requirement.

(a) Report required (1) In general Not later than 10 days after the date on which the President submits a budget of the United States Government for each of fiscal years 2027 through 2031 to Congress pursuant to section 1105 of title 31, United States Code, the Secretary of Defense shall submit to the congressional defense committees a report on any cancellations of contracts during the preceding fiscal year. (2) Reporting on fiscal year 2025 cancellations The Secretary of Defense shall include in the first report submitted under paragraph (1) reporting on any cancellations of contracts during fiscal year 2025. (b) Elements The report required under subsection (a) shall include the following elements: (1) Identification of the Contract Line Item Number affected. (2) Total value of such Contract Line Item Number. (3) Total existing obligations against that Contract Line Item Number. (4) Any fee paid, if applicable, for cancelling the contract. (5) A brief justification of the rationale for cancellation, tagged by— (A) non-alignment with the priorities of the Secretary of Defense; (B) requirement no longer exists; (C) requirement has decreased; (D) requirement exists, but the contract did not meet requirements for cost or the schedule or performance are unacceptable; or (E) any other rationale as determined by the Secretary. (6) For any Contract Line Item Number tagged pursuant to paragraph (5)(E), a brief proposed timeline for issuing a new contract to meet the specified requirement.