HR 1118: Value Over Cost Act of 2026

HR 1118 in plain English: This bill would allow the General Services Administration to award federal contracts under its multiple award schedule program based on 'best value' rather than lowest price alone, when GSA determines that approach serves the government's best interests. Best value means evaluators can consider non-cost factors, such as quality or performance, alongside price when selecting vendors.

Stated purpose

This bill changes the rule for how the federal government evaluates contracts under the GSA's multiple award schedule program, allowing purchases to be made based on 'best value' — which considers quality and other factors — rather than being required to choose the lowest overall cost option.

Key points

• Allows GSA to select contractors based on best value, not just lowest cost
• Applies to the multiple award schedule program, which helps agencies buy commercial goods and services
• GSA must determine that using best value criteria serves the government's best interests

Arguments supporters make

• Choosing only the cheapest option can lead to poor-quality goods and services that cost more to fix or replace later — best value gets taxpayers a better deal overall.
• Federal agencies should have the same flexibility that businesses and consumers use every day when deciding that quality and reliability matter, not just price.
• The GSA already determines when best value applies, so there is a built-in check to prevent misuse of this flexibility.

Arguments opponents make

• Removing a clear lowest-cost requirement opens the door to favoritism or waste, since 'best value' is a judgment call that is harder to audit or challenge.
• Taxpayer money should be spent as efficiently as possible, and allowing agencies to pay more than the minimum necessary price risks unnecessary government spending.
• Without strong oversight, vague best-value criteria could be used to steer contracts toward preferred vendors rather than the most deserving ones.

Tradeoffs

Giving agencies more flexibility to consider quality and other factors may improve what the government gets for its money, but it also removes a concrete, easy-to-verify cost limit — trading a clear rule for judgment calls that are harder to oversee.

Current status in Congress: Passed House.

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