HR 856 · 119th Congress

Safe and Smart Federal Purchasing Act

federal contractingnational securitygovernment procurementcongressional oversight
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Last action 2025-03-04

Sponsored by Rep. Donalds, Byron [R-FL-19] (R) — FL

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Would require the Office of Management and Budget to review whether a federal contracting rule — the 'lowest price technically acceptable' process, which awards contracts to the cheapest qualified bidder — has created national security risks, and report its findings to Congress within 180 days.

What this bill would do

What it would do

The bill would direct the Director of the Office of Management and Budget to review the procurement management practices of federal Defense and Civilian agencies to determine whether the "lowest price technically acceptable" (LPTA) source selection process — a rule under the Federal Acquisition Regulation that can steer contracts to the lowest-cost bidder meeting minimum technical requirements — has created any national security risk. Within 180 days of enactment, the Director would be required to submit a written report on those findings to the House Committee on Oversight and Government Reform and the Senate Committee on Homeland Security and Governmental Affairs.

The bill does not itself change the LPTA rule or any other procurement regulation. It solely requires a review and report; any policy changes would depend on separate future action by Congress or the executive branch.

Key provisions

  1. 1Would direct the OMB Director to review Defense and Civilian agency procurement practices to determine whether the LPTA source selection rule has created national security risks.Sec. 2(a)
  2. 2Would require the OMB Director to submit a written report of findings to the House and Senate oversight committees within 180 days of enactment.Sec. 2(b)

Who would be affected

The Office of Management and Budget, which would conduct and deliver the review. Federal Defense and Civilian agencies whose procurement practices would be evaluated. Contractors that compete for federal contracts under the LPTA process could ultimately be affected if the review leads to future regulatory changes, though the bill itself imposes no direct requirements on them.

Why it matters

If the review surfaces concrete national security concerns tied to the LPTA process — such as contracts awarded to vendors with inadequate security controls or foreign supply-chain risks — it could provide the evidentiary basis for reforming federal contracting rules. Without the review, Congress and agencies would lack a formal government-wide assessment of those risks.

What would change

Agencies directed to act

Office of Management and Budget

Effective dates

  • Deadline for OMB Director to submit the review report to CongressSec. 2(b)Within 180 days of enactment

How implementation would work

The OMB Director would conduct the review internally, examining procurement management practices across Defense and Civilian agencies as defined by 41 U.S.C. § 133. The bill sets a firm 180-day deadline from enactment for the written report to reach both oversight committees. No rulemaking, grant cycles, or enforcement mechanisms are established; the bill is limited to ordering the study and mandating the report.

Legislative status & sources

Latest action

Received in the Senate and Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

2025-03-04

Official CRS summary

Show the CRS summary

This bill requires the Office of Management and Budget (OMB) to evaluate the procurement activities of federal agencies to determine whether provisions of the Federal Acquisition Regulation related to the lowest price technically acceptable source selection process have created any national security risk and report to Congress.

From the Congressional Research Service.

Legislative subjects

Congressional oversight; Government Operations and Politics; Government information and archives; Public contracts and procurement

Congressional Bill

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HR 856: Safe and Smart Federal Purchasing Act | Legislation Reporter