H.R. 1118 — Value Over Cost Act of 2025, as amended
Executive Summary
H.R. 1118 modernizes federal procurement by shifting the evaluation standard for the multiple award schedule program from 'lowest overall cost alternative' to 'best value.' Under the status quo, contracting officers are often forced to select the cheapest bid, which can result in poor-quality goods, higher long-term maintenance costs, and supply chain vulnerabilities. By adopting a 'best value' standard, this bipartisan bill empowers agencies to weigh factors like past performance, reliability, and technical superiority alongside price, ultimately aiming to improve the quality of government services and reduce lifecycle costs.
Arguments For
- Quality Over Cheapness: Allows agencies to procure higher-quality goods and services, which often reduces long-term lifecycle costs associated with maintenance, replacement, and operational failures.
- Supply Chain Security: Empowers contracting officers to consider reliability and security, preventing the government from being handcuffed to the cheapest, potentially vulnerable (e.g., subsidized foreign) bidders.
- Bipartisan Appeal: Demonstrates a common-sense approach to government efficiency that appeals to both industry partners wanting fair competition and agencies wanting better tools.
Likely Supporters
Arguments Against
- Subjectivity and Protests: 'Best value' is inherently more subjective than 'lowest cost,' which could lead to an increase in bid protests from losing contractors claiming the evaluation criteria were arbitrary.
- Upfront Cost Increases: Removing the mandate to choose the lowest cost alternative will likely increase the immediate, upfront price tag of federal contracts, drawing scrutiny from fiscal conservatives.
Likely Opponents
📋 Key Provisions
- Amends Section 152(3)(B) of title 41, United States Code, governing the multiple award schedule program.
- Strikes the statutory requirement to select the 'lowest overall cost alternative'.
- Establishes 'best value' as the new standard for evaluating and awarding contracts under the program.
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Names the bill the Value Over Cost Act of 2026.
"cited as the “Value Over Cost Act"
Replaces the lowest cost mandate with a best value standard.
"striking “lowest overall cost alternative” and inserting “best value”"