Value Over Cost Act of 2026

HR 1118, the Value Over Cost Act of 2025, amends federal procurement rules to allow government agencies to select contracts based on "best value" rather than solely the lowest price. It updates sections of the U.S. Code (41 U.S.C. §152 and 10 U.S.C. §3012) to require that contracts first consider the "lowest overall cost," but also permit agencies to choose "best value" when the General Services Administration Administrator determines it serves the government's best interests. This change directly affects federal agencies purchasing goods or services through the Multiple Award Schedule program and defense-related contracts. The bill formalizes an existing practice under federal procurement regulations (FAR §15.101) without altering the underlying definition of "best value."