This legislative proposal grants the Secretary of Defense the authority to include specific terms in large defense contracts to restrict the financial activities of underperforming contractors. The primary goal is to ensure that contractors prioritize performance and investment in production capabilities over certain financial distributions. Specifically, for contracts valued at $100,000,000 or more , the Secretary may prohibit a contractor from conducting stock buybacks , issuing shareholder dividends , or paying any executive an annual compensation exceeding $5,000,000 . These limitations are triggered if the contractor fails to perform the contract on time and on budget, or if they exhibit insufficient production speed or capacity. This measure aims to hold contractors accountable for their performance and incentivize efficient delivery of defense goods and services, particularly when failures stem from inadequate investment in production methodologies or equipment maintenance.