DoD Must Prioritize U.S. Companies for Consulting, Engineering Contracts Under New 'SAFE Services Act'

The “Securing American Firms and Expertise in Services Act,” or SAFE Services Act, mandates a significant shift in how the Department of Defense (DoD) hires for specialized support. Essentially, the bill requires the DoD to give preference to U.S.-based companies when awarding contracts for professional services—think engineering, financial consulting, program management, and legal work (SEC. 2).

This isn't just a suggestion; the DoD must update its acquisition rules within 180 days of the bill becoming law to make this preference official. A “United States company” is strictly defined here: it must be organized under U.S. law, have its principal place of business here, and, critically, not be directly or indirectly owned or controlled by a foreign entity. Even joint ventures need at least 50% U.S. ownership to qualify (SEC. 2).

The 'Buy American' Rule for Brainpower

For the average taxpayer, this bill is about keeping defense dollars in the domestic economy. If you’re an engineer working for a U.S. firm, this means your company gets a leg up when the DoD is looking to hire for a major project, like designing a new facility or managing a complex software rollout. The goal is clear: strengthen the domestic industrial base that supports our military.

However, the preference only applies “to the maximum extent practicable and consistent with national security.” That phrase is the first sign that this isn't a hard-and-fast rule. It gives contracting officers significant wiggle room to interpret what is “practicable,” which could lead to some subjective decisions on the ground.

The National Security Escape Hatch

This bill recognizes that sometimes, the best or fastest option might not be a purely U.S. company. The Secretary of Defense has the authority to waive the preference under two specific conditions. First, if sticking to the preference would prevent the DoD from meeting an urgent operational requirement (like needing specialized foreign expertise immediately for a mission). Second, if no U.S. company can fulfill the contract requirements in a “timely or cost-effective manner” (SEC. 2).

This waiver clause is the bill's safety valve, but it’s also where things get interesting. Who determines what is “cost-effective”? If a foreign consulting firm offers a bid that is 30% lower than the U.S. option, does the DoD have to pay the premium to keep the contract domestic? The bill doesn't set a threshold, leaving that decision to the Secretary. Any waiver issued must be in writing with a justification and reported to Congress within 30 days, which at least keeps the process transparent and accountable.

Who Benefits and Who Pays?

The clear winners here are U.S. professional services firms—especially those in engineering and specialized consulting—who will see fewer foreign competitors bidding on lucrative defense contracts. This could stabilize or increase job security in these sectors.

On the flip side, limiting competition often means increasing costs. Taxpayers might end up footing a slightly higher bill for these services if the DoD is compelled to select a U.S. firm over a cheaper, equally capable foreign one. Furthermore, if the DoD needs highly specialized, niche expertise that only a foreign entity possesses, the waiver process could slow down procurement or potentially restrict access to the best available talent globally. This trade-off between supporting domestic industry and ensuring the most competitive pricing and expertise is the core dynamic of the SAFE Services Act.