It would eliminate contractors' ability to point out even simple mistakes or offer their perspective on circumstances when the agency officials view it different way, critics say.
Counterfeit parts, mostly made in China, have found their way into the U.S. military's supply chain, and now members of the Senate Armed Services Committee want to hold contractors more responsible.
Lawmakers have continually said the tax that would keep back 3 percent of payments to companies would hurt contractors and make it tough for agencies to comply with the administrative burdens.