Allow covered private borrowing costs in production and sustainment contracts
- Objective
- Expand production
- Family / instrument
- Industrial capacity, capital and credit · Contractor financing-cost recovery
- Statute
- Authority holder
- Secretary of Defense
- Executor · routing lead
- Covered-contract contracting and pricing teams under implemented pilot
Recorded eligibility gates (excerpt)
Secretary establishes pilot after briefing congressional defense committees on material/inventory audit compliance
Covered activity manages production or sustainment inventories, or materially expands production/sustainment capacity through capital expenditureAll requirements & limits
Recorded funding condition (excerpt)
Contract payments subject to availability of appropriations for purpose; financing-cost allowability does not itself provide funds or create government credit subsidy authority.All funding conditions
What this does not authorize / limits
No authorization of financing-cost treatment for covered contracts entered on or after Dec.31,2029
- Government termination liability capped at funding obligated when terminated
- Financing entity is not a subcontractor solely by participating
- Pilot establishment and current implementation guidance not verified
Legal basisSources linked
RequirementsGates recorded
Public fundingRules recorded
Assigned rolesRoles recorded
EngagementProgram unverified
Public evidence describes the institution and instrument; it is not approval of an individual transaction. Enacted discretionary pilot authority; establishment, implementing procedures and transaction funding must be verified.
Actor sources
Independent public-source guide; not an official U.S. government website. Original research target October 2, 2026; published October 3, 2026. Read the full record for currentness, coordination and all source notes.