S. 1592: Safe and Smart Federal Purchasing Act

The "Safe and Smart Federal Purchasing Act" aims to enhance the federal procurement process, especially regarding national security. Below are the key components of the bill:

Review of Procurement Practices

The bill mandates the Director of the Office of Management and Budget (OMB) to conduct a review focused on the procurement management practices used by Defense and Civilian agencies. The review specifically looks into whether the "lowest price technically acceptable source selection process," as defined under section 15.101-2 of the Federal Acquisition Regulation, poses any risks to national security.

Reporting Requirements

Following the review, the Director must compile the findings and submit a report within 180 days of the bill's enactment. This report is to be submitted to:

• The Committee on Oversight and Government Reform of the House of Representatives
• The Committee on Homeland Security and Governmental Affairs of the Senate

Definitions

For the purposes of this bill:

• Defense and Civilian Agency: This refers to any agency as defined in section 133 of title 41, United States Code.
• Director: This is the individual serving as the Director of the Office of Management and Budget.

Objectives

The primary objective of this bill is to ensure that federal procurement practices do not jeopardize national security by allowing only the lowest priced bids without adequate consideration of the technical qualifications and overall reliability of the suppliers.

Scope and Impact

This legislation may have implications for how federal contracts are awarded, potentially leading to changes in strategy for both government agencies and contractors involved in supplying goods and services, particularly those with national security implications.

Relevant Companies

• LMT - Lockheed Martin Corporation provides various defense services and products, and may need to adapt its bidding strategies based on outcomes from the review.
• BA - The Boeing Company is involved in defense contracting and could be impacted by changes in procurement processes emphasized by the bill.
• NOC - Northrop Grumman Corporation focuses on aerospace and defense technology, which may be affected by the level of scrutiny applied to lowest price proposals.
• RTX - Raytheon Technologies operates in the defense and aerospace sectors and might have to adjust its approaches to federal contracts as a result of this bill.