H.R.1118 - Value Over Cost Act of 2025 (119th Congress)
Summary
H.R.1118, the Value Over Cost Act of 2025, aims to amend Title 41 and Title 10 of the United States Code to prioritize 'best value' in federal procurement through the multiple award schedule program. The bill allows the Administrator of General Services to consider factors beyond the lowest overall cost when it is deemed necessary to promote the best interests of the Federal Government. This shift intends to ensure that the government receives the most advantageous goods and services, even if they are not the cheapest.
Expected Effects
The primary effect of this bill would be a change in how federal agencies evaluate bids for contracts under the multiple award schedule program. Instead of solely focusing on the lowest cost, agencies could consider other factors such as quality, reliability, and long-term value. This could lead to contracts being awarded to vendors offering superior products or services, even if their prices are slightly higher.
Potential Benefits
- Improved Quality of Goods and Services: By prioritizing 'best value,' the government may acquire higher-quality goods and services that better meet its needs.
- Long-Term Cost Savings: While the initial cost may be higher, better-value products could lead to reduced maintenance, replacement, and operational costs over time.
- Increased Innovation: Companies offering innovative solutions may be more competitive, even if their prices are not the absolute lowest.
- Enhanced Government Efficiency: Better-value acquisitions can improve the efficiency and effectiveness of government operations.
- Support for Businesses Offering Superior Value: The bill could incentivize businesses to focus on quality and innovation rather than solely competing on price.
Potential Disadvantages
- Potential for Increased Costs: A shift away from the lowest-cost approach could lead to higher initial expenditures.
- Risk of Subjectivity: Determining 'best value' can be subjective and may lead to inconsistencies in procurement decisions.
- Increased Administrative Burden: Evaluating bids based on multiple factors can be more complex and time-consuming.
- Potential for Favoritism or Bias: The flexibility to consider factors beyond cost could create opportunities for favoritism or bias in the procurement process.
- Difficulty in Measuring 'Best Value': Quantifying and comparing the 'value' of different products or services can be challenging.
Constitutional Alignment
The bill appears to align with the Constitution, particularly the implied powers necessary to execute the enumerated powers in Article I, Section 8, which includes providing for the common defense and general welfare. By aiming to improve the efficiency and effectiveness of government procurement, the bill supports the government's ability to fulfill its constitutional responsibilities. There is no apparent conflict with any specific constitutional provision.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).