HR1118-119

What This Bill Does

The Value Over Cost Act changes federal multiple award schedule procurement rules in title 41 and title 10. Current procedures focus on orders and contracts resulting in the lowest overall cost alternative. The bill allows those procedures to result either in the lowest overall cost alternative or, when the Administrator of General Services determines that obtaining best value as described in Federal Acquisition Regulation section 15.101 is necessary to promote the best interests of the federal government, obtaining the best value to meet federal needs. Parallel language is added for defense procurement references, using best value to meet the needs of the United States.

Who Benefits and How

Federal agencies buying through multiple award schedules benefit because they can prioritize best value when GSA determines that lowest cost alone does not meet federal needs. Contractors offering higher-quality, more technically capable, or lower-risk products and services benefit because best value can consider more than price. The General Services Administration benefits from explicit authority to approve best-value use under FAR 15.101. Defense procurement customers benefit from parallel title 10 language. Taxpayers benefit if best-value choices reduce lifecycle risk, performance failures, or poor-quality purchasing despite higher upfront prices.

Who Bears the Burden and How

The Administrator of General Services must determine when best value is necessary and justify use of FAR 15.101 concepts. Contracting officers must document and apply best-value tradeoffs rather than relying solely on lowest cost. Lowest-price vendors may lose some advantage when agencies use best value. Procurement oversight staff must monitor whether best-value determinations are used appropriately. Agencies may face more evaluation complexity when nonprice factors are weighed.

Key Provisions

• Amends title 41 multiple award schedule procedures.
• Amends parallel title 10 defense procurement procedures.
• Preserves the lowest overall cost alternative as one permissible result.
• Allows best value when the GSA Administrator determines it is necessary for federal interests.
• Incorporates the Federal Acquisition Regulation section 15.101 concept of best value.
• Gives agencies room to weigh quality, technical merit, and risk when authorized.