Value Over Cost Act of 2025
- Bill Number
- S. 2118
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Government Operations and Politics
- Status
- Introduced
- Latest Action
- 2025-06-18: Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
- Last Updated
- 2025-12-06T06:52:12Z
AI-Generated Summary
Purpose of the Legislation
The "Value Over Cost Act of 2025" (S. 2118) aims to update federal procurement rules to prioritize "best value" in government contracts under the multiple award schedule program. This program, managed by the General Services Administration (GSA), allows federal agencies to purchase goods and services from pre-qualified vendors through streamlined schedules rather than competitive bidding for each purchase. The act shifts emphasis from strictly the lowest price to a broader evaluation that includes quality, performance, and overall benefits to the government.
Key Provisions
- Amendments to Civilian Contracts (Title 41, U.S. Code): Updates Section 152(3)(B) to require that orders and contracts under the multiple award schedule program achieve either:
- The lowest overall cost alternative, or
- Best value (as defined in Section 15.101 of the Federal Acquisition Regulation, which considers factors like price, technical capability, and past performance), if the GSA Administrator determines it is necessary to serve the federal government's interests.
- Amendments to Defense Contracts (Title 10, U.S. Code): Similarly updates Section 3012(3)(B) for Department of Defense procurements, applying the same lowest cost or best value criteria, with the focus on meeting U.S. government needs.
- The changes apply specifically to the multiple award schedule program, giving the GSA Administrator discretion to opt for best value when it promotes broader government benefits.
Significant Changes to Existing Law
- Previously, these sections emphasized the "lowest overall cost alternative" as the primary outcome for multiple award schedule contracts.
- The act introduces flexibility by allowing "best value" as an alternative, but only when explicitly justified by the GSA Administrator. This aligns procurement more closely with the Federal Acquisition Regulation's best value principles, which already guide many federal buys but were not explicitly incorporated here before.
- No new programs or funding are created; the changes are targeted amendments to refine existing procurement criteria.
Potential Impacts
- On Government Agencies: Civilian and defense agencies (e.g., Department of Defense) may gain more efficient access to higher-quality goods and services, potentially reducing long-term costs through better durability or innovation, though it could slightly increase upfront evaluation time.
- On Citizens: Indirect benefits could include improved government operations and taxpayer value, as procurements might prioritize reliability over rock-bottom prices, leading to more effective public services.
- On International Relations: Minimal direct impact, as the changes focus on domestic federal contracting; however, it could indirectly affect U.S. vendors competing globally by making federal markets more attractive for innovative suppliers.
- Overall, the act promotes procurement efficiency without overhauling the system, potentially saving money and enhancing outcomes in federal spending, which totals billions annually through these schedules.
Main Stakeholders Affected
- Federal Agencies: Civilian agencies (via GSA) and the Department of Defense, which rely on the multiple award schedule for routine purchases like office supplies, IT, and professional services.
- Vendors and Contractors: Businesses participating in GSA schedules, who may compete more on quality and expertise rather than price alone, opening opportunities for non-lowest-bid providers.
- General Services Administration (GSA): Gains authority to determine when best value applies, influencing procurement decisions across government.
- Taxpayers: As indirect beneficiaries through more accountable federal spending.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: Strengthens alignment with existing Federal Acquisition Regulation standards, reducing potential disputes over "fair and reasonable" pricing by formalizing best value options. It maintains oversight by requiring GSA Administrator justification, avoiding arbitrary decisions.
- Constitutional Implications: None significant; the act operates within Congress's established authority over federal spending (Article I, Section 9) and does not infringe on states' rights or individual liberties.
- Political Implications: Supports bipartisan goals of government efficiency and fiscal responsibility, potentially appealing to those favoring streamlined procurement amid debates on federal spending. It could face scrutiny from advocates of strict cost controls but is unlikely to spark major controversy given its narrow scope.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2025-06-18: Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
- 2025-06-18: Introduced in Senate
Bill Versions
- Value Over Cost Act of 2025 — issued 2025-06-18 — PDF (3 pages)