H.R. 5235: Skills-Based Federal Contracting Act

The bill, titled the Skills-Based Federal Contracting Act, aims to change how federal contracts are awarded regarding the educational qualifications of contractor personnel. Here is a breakdown of what this bill proposes:

Prohibition of Minimum Education Requirements

The bill would prohibit federal contracting agencies from requiring any minimum educational qualifications for contractor personnel unless a written justification is provided. This means that bidders who want to secure contracts with the federal government will not be automatically disqualified based on educational criteria.

• Contracting officers must articulate why the needs of the agency cannot be met without setting minimum education requirements.
• The justification must explain how such requirements address the specific needs of the agency.

Implementation Guidance

Within six months of the bill's enactment, the Office of Management and Budget (OMB) is required to provide guidance for contracting officers. This guidance should include:

• Instructions on how to justify the use of education requirements.
• Encouragement for contracting officers to explore alternatives to educational requirements.

Applicability and Timeline

The changes made by this bill will apply to solicitations issued 15 months after the bill is enacted. This means that existing contracts would not be affected immediately, but future ones would be under the new guidelines.

Repeal of Existing Law

The bill seeks to repeal a specific provision from the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001, which currently mandates certain educational requirements. This repeal would take effect once the OMB guidance is implemented.

Oversight and Reporting

Furthermore, the bill mandates that within three years of its enactment, the Government Accountability Office (GAO) will evaluate how well executive agencies are complying with the new requirements regarding education qualifications for contractors.

Definitions

The bill includes specific definitions related to education and educational requirements:

• Education: Includes various levels of degrees and specified coursework from accredited institutions.
• Education Requirement: Refers to qualifications that can be met through education alone, or a combination of education and experience.
• Executive Agency: Defined in accordance with existing federal law.

Relevant Companies

• BA (Boeing) - As a major federal contractor, Boeing could see changes in how it hires personnel for contracts that may previously have had educational requirements.
• LMT (Lockheed Martin) - Similar to Boeing, this defense contractor may benefit from the flexibility in hiring personnel without strict educational requirements for certain roles.
• RTX (Raytheon Technologies) - Another major defense contractor that may adjust its hiring practices in response to the changes in contract solicitation rules.