(b) Purpose The purpose of the pilot program is to reward Department of Defense contractors who work with the Department in the pre-award process to prevent excessive costs and establish guardrails against excessive prices. (c) Progress payments (1) Limitations for traditional contractors Under the pilot program, the Department of Defense may not award to traditional business contractors progress payments in excess of 50 percent. (2) Exceptions The Department of Defense may increase the rate of progress payments to 80 percent if the division of the company provides certified cost or pricing information within 30 days of the Department’s request for the information. The progress payment rate may not exceed 95 percent. (d) Definitions In this section: (1) Traditional defense contractor The term traditional defense contractor means a contractor (other than an institute of higher education) that is currently performing or has currently performed for at least the one-year period preceding the solicitation of sources by the Department of Defense for the procurement or transaction, any contract or subcontract for the Department of Defense that is subject to full coverage under the cost accounting standards prescribed pursuant to section 1502 of title 41, United States Code, and the regulations implementing such section. (2) Progress payments The term progress payments means payments provided for under section 3804 of title 10, United States Code. 5. Disclosure by traditional defense contractors (a) Annual reporting Not later than 60 days after the date of the enactment of this Act, the Secretary of Defense shall amend the Department of Defense Supplement to the Federal Acquisition Regulation to provide that traditional contractors shall be required to annually report to the Under Secretary of Defense for Acquisition and Sustainment the following information with regard to the covered year, as compared with the year preceding that covered year: (1) The percentage change in the volume of goods or services sold and the