Value Over Cost Act of 2025
- Bill Number
- H.R. 1118
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Government Operations and Politics
- Status
- Introduced
- Latest Action
- 2026-02-05: Ordered to be Reported (Amended) by the Yeas and Nays: 44 - 0.
- Last Updated
- 2026-03-19T20:35:23Z
AI-Generated Summary
Purpose
The Value Over Cost Act of 2025 aims to improve federal procurement by allowing the use of "best value" criteria—factors like quality, performance, and reliability beyond just price—in the Multiple Award Schedule (MAS) program. This program lets federal agencies buy goods and services from pre-approved vendors through streamlined contracts. The goal is to ensure purchases meet government needs more effectively while still considering cost.
Key Provisions
- Amendments to Procurement Laws: Updates Section 152(3)(B) of Title 41, United States Code (governing civilian agencies) and Section 3012(3)(B) of Title 10, United States Code (governing the Department of Defense).
- Criteria for MAS Orders and Contracts:
- These must result in either:
- The lowest overall cost alternative, or
- Best value, as defined in Section 15.101 of the Federal Acquisition Regulation (FAR)—a set of rules that weighs non-price factors like vendor reliability and product quality—when the General Services Administration (GSA) Administrator decides it serves the federal government's best interests.
- The changes apply to both civilian and military procurement under the MAS program.
Significant Changes to Existing Law
- Previously, MAS procedures emphasized the "lowest overall cost alternative" without explicit flexibility for best value determinations.
- The bill introduces discretion for the GSA Administrator to prioritize best value when it promotes government interests, shifting from a strict cost-focus to a more balanced approach. This aligns civilian and defense procurement rules for consistency.
Potential Impacts
- On Government Agencies: Agencies, including the Department of Defense, can select higher-quality options that may cost more upfront but save money long-term through better performance or reduced maintenance. This could streamline buying processes and improve outcomes for missions.
- On Citizens and Taxpayers: May lead to more efficient use of public funds by avoiding low-cost but inferior products, potentially enhancing service delivery (e.g., better equipment for federal workers).
- On International Relations: Minimal direct impact, though it could indirectly affect U.S. vendors competing globally by favoring domestic best-value selections in federal contracts.
- Overall, promotes value-driven spending, but could increase short-term costs if best-value choices exceed lowest-cost bids.
Main Stakeholders Affected
- Federal Agencies: Including civilian offices under GSA and the Department of Defense, which rely on MAS for efficient purchasing.
- Vendors and Contractors: Companies on the MAS schedule (pre-qualified suppliers) may benefit from competing on quality, not just price, potentially increasing opportunities for innovative or high-performing firms.
- GSA Administrator: Gains authority to make best-value determinations, influencing procurement decisions.
- Taxpayers: Indirectly affected through how federal dollars are spent on goods and services.
Notable Legal, Constitutional, or Political Implications
- Legal: Enhances flexibility in the Federal Acquisition Regulation without altering core contracting principles; ensures compliance with existing procurement statutes by tying "best value" to established FAR definitions. No major challenges anticipated, as it builds on current law.
- Constitutional: Aligns with Congress's authority under Article I to regulate federal spending and commerce, promoting accountable use of taxpayer funds without infringing on executive procurement powers.
- Political: Introduced bipartisanship (by Rep. Donalds and Rep. Moskowitz) signals broad support for reforming government efficiency. Could influence future debates on balancing cost savings with quality in federal budgeting, potentially setting precedent for similar reforms in other procurement areas.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Rep. Moskowitz, Jared [D-FL-23]
Recent Actions
- 2026-02-05: Ordered to be Reported (Amended) by the Yeas and Nays: 44 - 0.
- 2026-02-04: Committee Consideration and Mark-up Session Held
- 2025-02-07: Referred to the Committee on Oversight and Government Reform, and in addition to the Committee on Armed Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-02-07: Referred to the Committee on Oversight and Government Reform, and in addition to the Committee on Armed Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-02-07: Introduced in House
- 2025-02-07: Introduced in House
Bill Versions
- Value Over Cost Act of 2025 — issued 2025-02-07 — PDF (3 pages)