H.R. 10962: Justification Oversight and Opportunities for Main Street Act of 2026

This bill would change how the Department of Defense, especially the Army, explains and documents certain contracts that are awarded without using full competitive bidding.

What the bill changes

Under current law, when the Defense Department uses a noncompetitive contracting method, it must prepare a “justification and approval” explaining why competition was not used. This bill would require that explanation to include two additional items:

• Whether a subcontracting plan was included for the contract.
• A statement that the justification was coordinated with the Office of Small Business Programs.

The bill would also expand one of the reasons that can be used to justify a noncompetitive contract. It would allow the department to say that the award is intended to maintain a contracting relationship with the prime contractor.

Small business and bundling notices

For each covered contract, the Secretary of Defense would have to notify certain congressional committees in writing that the contract did not involve “bundling” of requirements. Bundling generally means combining work that could otherwise be separated in a way that may make it harder for smaller businesses to compete.

Regulations

The Secretary of Defense would have to issue or update regulations within 180 days so the new rules can be carried out.

Required report from the Comptroller General

Within 180 days, the Government Accountability Office (through the Comptroller General) would have to report to Congress on Army contracts awarded in fiscal years 2025 and 2026 using these noncompetitive procedures. The report would include:

• A list of the contracts awarded.
• Findings on whether the required justifications comply with the law.
• Findings on whether contracts involving small businesses meet Small Business Act requirements, including rules on bundling.
• Recommendations for improving oversight and competition in Army procurement.

Practical effect

In plain terms, the bill would add more paperwork and oversight when the Defense Department awards some contracts without open competition, with a particular focus on transparency, small business coordination, and whether contracts are being bundled in ways that could affect competition.

Relevant Companies

None found