Section 1. Short title
This Act may be cited as the Prioritizing Warfighters in Defense Contracting Act.
(a) In general
The Secretary of Defense may include terms in a contract, the expected value of which is greater than or equal to $100,000,000, to prohibit the contractor from conducting a stock buyback, issuing dividends to shareholders of the contractor, or paying any executive (including the chief executive officer) of the contractor total annual compensation in excess of $5,000,000 if the contractor takes an action described in subsection (b).
(b) Actions described
An action described in this subsection is as follows:
(1) The contractor fails to perform such contract on time and on budget, including if such failure is due to inadequate investment in new or modernized production methodologies.
(2) The contractor performs such contract at insufficient production speed or capacity, including if such insufficiency is due to a failure to maintain equipment required for such performance.
(c) Applicability
This section shall apply with respect to contracts entered into on or after the date of the enactment of this Act.