H.R. 9596: Value Over Cost Act

This bill, known as the Value Over Cost Act, aims to modify the way federal government contracts are awarded, specifically through the multiple award schedule program. The primary focus of the bill is to emphasize obtaining the best value for the Federal Government rather than just the lowest cost.

Key Changes Proposed

• The bill amends existing laws in titles 41 and 10 of the United States Code to redefine how “best value” is determined in government contracts.
• It allows the Administrator of General Services to prioritize "best value" when determining contracts if it is deemed necessary for the government's interests.
• Under the amendments, contracts can result in either:
  • The lowest overall cost alternative, or
  • A best value determination that meets the needs of the federal government, as assessed by the Administrator.

Implications of the Bill

If enacted, this bill could potentially change the procurement strategy of the federal government by encouraging agencies to consider factors beyond just price. This may lead to better quality goods and services being delivered to the government, even if they don't always represent the lowest initial costs.

Relevant Companies

• BA - Boeing Co.: As a major supplier of defense and aerospace products, Boeing could be impacted by changes in government contract awards that prioritize best value.
• LOCK - Lockheed Martin Corp.: As a leading defense contractor, Lockheed Martin may benefit from a focus on best value in contracts, as it often provides advanced technology solutions that may not have the lowest upfront costs.
• RTX - Raytheon Technologies Corp.: Similar to Boeing and Lockheed Martin, Raytheon provides critical defense technologies and could see changes in its contract opportunities based on the new valuation criteria in this bill.