On July 16, the General Services Administration published via its website 16 legislative proposals that the Office of Management and Budget transmitted to the 119th Congress. Legislative proposal No. 11, “Providing Best Value Through the Multiple Award Schedule Program,” will update “the standard for the GSA Multiple Award Schedules program to seek out the best value for government, rather than the lowest cost which many not account for administrative costs, product quality, delivery time, and other factors.” This proposal will have a profound, positive impact on delivering mission support through the Multiple Award Schedule program for customer agencies and the American people.
The current statutory language underpinning the MAS program provides that contracts and orders result in the lowest cost alternative to the meet the government’s needs. This standard was adopted over 40 years ago, in 1984, as part of the Competition in Contracting Act. The administration’s legislative proposal would update the MAS statutory language, bringing it into the 21st century, by substituting “lowest cost alternative to meet the government’s needs” with “best value products and services for the Federal government.”
This change will further empower the federal government to focus on outcomes rather than low price. In researching for this blog, I asked an artificial intelligence tool for a definition of best value. Here is the response in part:
“Best value refers to achieving the most advantageous combination of factors, including price, quality, performance, and other relevant considerations, when making a purchase or awarding a contract. It’s not solely about the lowest price, but rather about finding the optimal balance between cost and the desired outcome or benefit. [Emphasis added.] In government procurement, best value often involves evaluating factors beyond just the initial price, such as a vendor’s past performance, technical capabilities, and overall cost of ownership over the item’s lifespan.”
This classic definition of “best value” explains why the administration is seeking the change, as it will further enhance the ability of GSA, customer agencies, and contractors to focus on outcomes that deliver best value mission support for the American people rather than solely low price. It is about being a good steward of the public fisc. As my AI tool noted, “[i]n government procurement, best value is the cornerstone of ensuring that public funds are spent wisely and effectively.”
Best value can be found in the Federal Acquisition Regulation, agency supplemental guidance, and case law. If enacted, the administration’s legislative proposal will ensure that best value will be foundational to the MAS program, its implementing regulations, and contracts. The “best value” language will enhance GSA’s ability to craft MAS processes and contract terms that enhance effective and efficient outcomes for the federal government. Part and parcel of this updated authority will be greater flexibility to eliminate barriers to entry for innovative commercial firms seeking entry into the federal market. The positive impact will also benefit the Department of Veterans Affairs’ MAS program and its partners, as the VA operates its MAS program pursuant to a delegation of authority from GSA. In sum, this legislative change will be critical in providing GSA with the necessary procurement management authority for the MAS program to efficiently and effectively support consolidation of procurement operations at GSA.
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