H.R.856 - Safe and Smart Federal Purchasing Act (119th Congress)
Summary
H.R. 856, the "Safe and Smart Federal Purchasing Act," mandates a review by the Director of the Office of Management and Budget (OMB) regarding the impact of the lowest price technically acceptable (LPTA) source selection process on national security. This review will encompass procurement management practices within both Defense and Civilian agencies. The Director is required to submit a report on the review's findings to specific committees in the House and Senate within 180 days of the Act's enactment.
The bill aims to assess whether prioritizing the lowest price in federal purchasing decisions compromises national security. The focus is on identifying potential risks associated with the LPTA process as defined in the Federal Acquisition Regulation.
Ultimately, the goal is to ensure that federal procurement practices effectively balance cost considerations with national security imperatives.
Expected Effects
The Act will likely lead to a reassessment of federal procurement strategies, potentially shifting away from a strict lowest-price approach in certain sectors. This could result in revised acquisition regulations that prioritize quality and security over cost in specific contexts.
Furthermore, the report generated by the OMB Director will inform Congress about the vulnerabilities introduced by the current LPTA process. This could lead to legislative action aimed at mitigating these risks.
In the long term, the Act may improve the resilience of the nation's supply chains and reduce the risk of acquiring substandard or compromised goods and services.
Potential Benefits
- Enhanced National Security: By scrutinizing the LPTA process, the Act may identify and mitigate vulnerabilities in federal procurement that could compromise national security.
- Improved Quality of Goods and Services: A shift away from prioritizing the lowest price could lead to the acquisition of higher-quality goods and services, improving the effectiveness of government programs.
- More Informed Decision-Making: The OMB Director's report will provide Congress with valuable insights into the risks and benefits of the LPTA process, enabling more informed decision-making regarding procurement policy.
- Strengthened Supply Chains: By considering factors beyond price, the Act may promote the development of more resilient and secure supply chains.
- Greater Accountability: The review process mandated by the Act will increase accountability in federal procurement, ensuring that agencies are considering all relevant factors when making purchasing decisions.
Most Benefited Areas:
Potential Disadvantages
- Increased Procurement Costs: Moving away from the LPTA process could lead to higher procurement costs, potentially straining government budgets.
- Potential for Delays: A more complex procurement process that considers factors beyond price could lead to delays in acquiring needed goods and services.
- Risk of Subjectivity: Introducing non-price factors into the procurement process could increase the risk of subjectivity and bias in decision-making.
- Administrative Burden: The review process mandated by the Act will create an additional administrative burden for the OMB and federal agencies.
- Uncertainty: The outcome of the review is uncertain, and it is possible that the Act will not lead to any significant changes in procurement policy.
Constitutional Alignment
The Act appears to align with the Constitution, particularly the implied powers necessary to execute the enumerated powers in Article I, Section 8, which include providing for the common defense and general welfare. By seeking to improve the security and effectiveness of federal procurement, the Act supports these constitutional objectives. The Act does not appear to infringe upon any specific constitutional rights or limitations.
Furthermore, the requirement for a report to Congress aligns with Congress's oversight responsibilities. The Act does not delegate legislative power to the executive branch in a way that would violate the separation of powers doctrine.
In summary, the Act's focus on improving federal procurement practices to enhance national security and efficiency is consistent with the Constitution's broad framework for governance.
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).