PolicyBrief
H.R. 1118
119th CongressFeb 7th 2025
Value Over Cost Act of 2025
IN COMMITTEE

This bill amends Title 41 and Title 10 of the United States Code to ensure that orders and contracts through the multiple award schedule program result in either the lowest overall cost or the best value to the Federal Government or the United States.

Byron Donalds
R

Byron Donalds

Representative

FL-19

LEGISLATION

New Procurement Bill Prioritizes 'Best Value' Alongside Lowest Cost in Government Contracts

The "Value Over Cost Act of 2025" tweaks how the federal government buys stuff, aiming for either the absolute lowest price or the "best value" when using the multiple award schedule program. Basically, it's about getting the most bang for the taxpayer's buck, whether that's through rock-bottom pricing or a slightly pricier option that offers better long-term value.

Rethinking "Cheap"

This bill amends Titles 41 and 10 of the U.S. Code. It gives the Administrator of General Services the power to decide when "best value" trumps "lowest cost." Think of it like this: sometimes, spending a bit more upfront on, say, more durable office furniture saves money in the long run compared to constantly replacing cheap stuff. The bill doesn't define "best value," leaving that up to the Administrator. For a small business owner, this could mean winning a contract isn't just about undercutting everyone on price; quality and long-term reliability could matter more.

Real-World Rollout

How this plays out in practice is key. Imagine a construction company bidding on a government project. Under this law, they might win even with a slightly higher bid if they can prove their materials and methods will last longer, reducing maintenance costs down the line. Or, a tech company might snag a contract by offering better cybersecurity features, even if their software isn't the cheapest on the market. Section 2 of the bill is where all of this is laid out.

The Trade-Offs

While aiming for "best value" sounds good, it also opens the door to potential challenges. Without super clear rules on what "best value" actually means, there's a risk of things getting subjective, or even political. It puts a lot of power in the hands of the Administrator of General Services. The bill also raises the question of whether this new approach could make the procurement process more complex, potentially slowing things down for agencies and contractors alike. It's a balancing act between saving money and ensuring quality, and the devil is always in the details.