S. 2118: Value Over Cost Act of 2025

This bill, known as the Value Over Cost Act of 2025, proposes changes to how the Federal Government evaluates contracts for both civilian and defense purposes. The main goal of the bill is to emphasize the importance of obtaining the best value in government contracts rather than just the lowest price. Here’s a breakdown of the key aspects of the legislation:

1. Civilian Contracts

The bill amends the rules governing civilian contracts under title 41 of the United States Code. The main changes include:

• The obligation of government orders and contracts to result in either:
• The lowest overall cost alternative.
• If necessary for the best interests of the Federal Government, obtaining the best value, according to a specified evaluation framework.

2. Defense Contracts

The bill also updates the regulations concerning defense contracts under title 10 of the United States Code. Similar to civilian contracts, the amendments include:

• That government orders and contracts should result in either:
• The lowest overall cost alternative.
• Or, if deemed necessary by the General Services Administrator, obtaining the best value to meet the needs of the United States.

3. Implications

The bill aims to ensure that contracts awarded by the government are not solely based on price but also consider factors that contribute to overall value. This approach promotes a broader consideration of what constitutes value, which could include quality, sustainability, and effectiveness in addition to cost.

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