Government Withholding Relief Coalition

The DoD reports on their cost estimate for compliance with the 3% withholding law. Their estimate is $17 billion for the first five years.

The report states:

DoD anticipates the costs for DoD to comply with section 511 will be significant – over $17 billion for the first five years. The estimated cost impact includes the costs for DoD to implement and manage section 511 within DoD and the additional costs escalation DoD will pay its contractors as a result of section 511. Further, DoD is concerned that section 511 may limit the number of companies willing to enter into the government market, thereby reducing competition and access to new technologies, and may cause other unintended consequences that are addressed in the report.

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