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Donalds Leads Bipartisan Initiative To Increase Efficiency In The Federal Bureaucracy

Washington, September 18, 2024

WASHINGTON – Congressman Byron Donalds (R-FL) has introduced legislation to provide the U.S. General Services Administration with the flexibility it needs to modernize antiquated federal procurement procedures and increase efficiency.

H.R. 9596 – "The Value Over Cost Act" will increase contractual flexibility and contracting competition while providing clarity for acquisition stakeholders. The legislation will also maximize the federal government’s ability to procure modern tech and help small businesses by reducing regulatory burdens.

H.R. 9596 – "The Value Over Cost Act" is the 102nd piece of legislation introduced by Congressman Donalds during the 118th Congress and has received the support of Representatives Lauren Boebert (R-CO), Jared Moskowitz (D-FL), Clay Higgins (R-LA), and Troy Nehls (R-TX).

Background:

  • The General Services Administration’s (GSA) Multiple Award Schedule (MAS) program is the Federal Government’s most-used contracting procedure for commercial products & services.
  • Currently, GSA’s MAS program requires GSA and federal agencies to contract using the “lowest overall cost alternative” standard—originally established in 1984. This legacy procurement standard calls for the selection of contracts that are in the best interest of the Federal Government—with price often being the determining factor.
  • Various GSA MAS contractors claim the legacy procurement standards increase their administrative costs, which leads them to charge the Federal Government higher prices. This legacy procedure is administratively burdensome—and GSA has agreed that change is necessary.


Bill Impacts:

  • In addition to considering the “lowest overall cost alternative,” this bill would provide GSA with additional flexibility to award contracts based on “best value” if GSA determines it to be in the best interest of the Federal Government.
  • Best Value—defined in Federal Acquisition Regulation (FAR) 2.101 as “the expected outcome of an acquisition that, in the Government’s estimation, provides the greatest overall benefit in response to the requirement.”
  • Ultimately, this bill puts the GSA MAS program on a level playing field with other acquisition procedures.


More:

  • Social Media Summary Graphics Roll-Out HERE.
  • Read the Full Text of the Legislation HERE.
  • Congress.gov profile of the Legislation HERE.