Floor SpeechBipartisan2025-03-03

SAFE AND SMART FEDERAL PURCHASING ACT

TaxesEnvironmentForeign PolicyDefenseChinaTradeCrime & JusticeInfrastructure

Context

On 2025-03-03, Representative Byron Donalds (R-FL-19) delivered a floor speech titled "SAFE AND SMART FEDERAL PURCHASING ACT" in the House. The speech addressed taxes and also covered the environment, foreign policy. It referenced legislation: HR856.

Full Text

SAFE AND SMART FEDERAL PURCHASING ACT

Congressional Record, Volume 171 Issue 40 (Monday, March 3, 2025) [Congressional Record Volume 171, Number 40 (Monday, March 3, 2025)] [House] [Pages H932-H933] From the Congressional Record Online through the Government Publishing Office [ www.gpo.gov ] SAFE AND SMART FEDERAL PURCHASING ACT Mr. COMER. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 856) to require the Director of the Office of Management and Budget conduct a review to determine the impact of the lowest price technically acceptable source selection process on national security, and for other purposes. The Clerk read the title of the bill. The text of the bill is as follows: H.R. 856 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Safe and Smart Federal Purchasing Act''. SEC. 2. REVIEW TO DETERMINE THE IMPACT OF THE LOWEST PRICE TECHNICALLY ACCEPTABLE SOURCE SELECTION PROCESS ON NATIONAL SECURITY. (a) Review.--The Director shall review the procurement management practices of Defense and Civilian agencies to determine whether the provisions of section 15.101-2 of the Federal Acquisition Regulation have created any national security risk. (b) Report.--Not later than 180 days after the enactment of this Act, the Director shall submit a report on the results of the review under subsection (a) to-- (1) the Committee on Oversight and Government Reform of the House of Representatives; and (2) the Committee on Homeland Security and Governmental Affairs of the Senate. (c) Definitions.--In this section: (1) Defense and civilian agency.--The term ``Defense and Civilian agency'' has the meaning given the term ``agency'' in section 133 of title 41, United States Code. (2) Director.--The term ``Director'' means the Director of the Office of Management and Budget. The SPEAKER pro tempore. Pursuant to the rule, the gentleman from Kentucky (Mr. Comer) and the gentleman from Virginia (Mr. Connolly) each will control 20 minutes. The Chair recognizes the gentleman from Kentucky. General Leave Mr. COMER. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on this measure. The SPEAKER pro tempore. Is there objection to the request of the gentleman from Kentucky? There was no objection. Mr. COMER. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, the lowest price technically acceptable, LPTA, is a source selection method outlined in the Federal Acquisition Regulation. This process uses price as a determining factor for a contract rather than other technical or operational factors. Following legislative work done by the House Oversight Committee during the 115th Congress, constraints were placed on agency use of the LPTA in the fiscal year 2019 National Defense Authorization Act. These constraints recognize that the LPTA criteria are not always appropriate for agencies seeking complex or technically innovative services. For instance, this can result in agencies sacrificing long-term value for short-term savings. We also do not want the LPTA to be used in a manner that jeopardizes national security. This bill requires the Director of the Office of Management and Budget to evaluate this source selection process to determine whether agencies are [[Page H933]] using the LPTA in an appropriate manner. Mr. Speaker, I thank my Oversight Committee colleague, Mr. Donalds, for his leadership on this bill, and I reserve the balance of my time. Mr. CONNOLLY. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise in strong support of the Safe and Smart Federal Purchasing Act of which I am a proud cosponsor. The bill would require the Director of the Office of Management and Budget to review the procurement management practices of Federal agencies to determine whether the use of acquisition procedures focused exclusively on cost, known as the lowest price technically acceptable, poses any national security risk. Since our committee reported this bill last Congress, I appreciate that the majority sought and incorporated feedback from the administration. When Federal agencies purchase goods and services, they aim to achieve the best value for the American people. In the words of the Federal Acquisition Regulation, ``best value'' means that the acquisition should provide ``the greatest overall benefit in response to the requirement.'' Under the LPTA procedures, price is the determining factor in awarding a contract with no consideration given to other factors. This contrasts with the more frequently used tradeoff approach, which looks at the bigger picture and considers additional factors beyond just cost, perhaps assessing elements like quality and performance or a bidder's technical or managerial expertise. This bill, and the tradeoff approach to Federal contracting, understands that focusing on contract price alone can actually increase the overall cost to the Federal Government and the American people. For example, cutting costs in the short-term can lead to expensive project delays, or might result in taxpayer dollars flowing to adversarial nations that threaten U.S. security interests. If no consideration is given to the strength and integrity of a bidder's supply chain, cutting costs in the short term could lead to inferior products or disastrous supply shortages at critical moments. I believe this is a thoughtful, commonsense approach to contracting. Mr. Speaker, I urge my colleagues to support the bill, and I reserve the balance of my time. Mr. COMER. Mr. Speaker, I yield 5 minutes to the gentleman from Florida (Mr. Donalds), a rising star. Mr. DONALDS. Mr. Speaker, I would be remiss without thanking Chairman Comer for the time on the floor today, and I might have to ask the chairman to introduce me everywhere going forward. I greatly appreciate that. Mr. Speaker, I rise in strong support of my bill, the Safe and Smart Federal Purchasing Act. For background, lowest price technically acceptable is the source selection method outlined in the Federal Acquisition Regulation, or FAR. Simply put, the LPTA FAR standard prioritizes price above everything else. Focusing on price, instead of other technical or operational factors in Federal procurement, can result in agencies cutting corners, long- term value being sacrificed, or in its worse aspects, even potential risks to America's national security. In my view, the use of the LPTA may not always be appropriate when Federal agencies purchase innovative technologies and technical services, and agencies should have the flexibility to pay more for a superior solution if the circumstances are appropriate. I will say to the American people that, obviously with all of the things that we are talking about in Washington around the Department of Government Efficiency, better known as DOGE, going through and trying to cut costs, we do have to be mindful that we are getting the best products for the Federal Government to use because that actually does yield great results for the American people. Moreover, we, as Congress, have an obligation to fully understand the impacts of utilizing the LPTA. One example of when the LPTA may not be appropriate relates to the procurement of Chinese drones. Chinese drone maker, DJI, is the world's largest manufacturer of personal and professional drones, and Federal agencies to this day utilize DJI drones, which present a large national security risk. Why would Federal agencies procure Chinese drones when there are higher-quality American drones currently available on the market? That is when the lowest price technically acceptable FAR standard may come into play. To provide some additional context, Chinese state-backed DJI aggressively dropped its prices in 2015 and now DJI drones account for more than 75 percent of the global drone marketplace, offering its products in over 100 countries. While a wide range of innovative American drone products are available, in many cases, the LPTA slides the Federal procurement preference scale away from American drones in favor of these Chinese drones merely because they are cheaper. To emphasize, all companies in China are required by Chinese law to give the Communist Chinese Party access to all their information upon request. In fact, in August 2017, Homeland Security Investigations issued an intelligence bulletin warning that DJI was providing critical infrastructure and law enforcement data to the Chinese Government. Today, the lowest price technically acceptable does not account for national security implications, so my bill would simply require an evaluation of potential national security concerns associated with the LPTA FAR standard. Instead of just looking at the initial price tag and procuring the cheapest product and service, it is vitally important that the United States Government understand the national security implications associated with its own Federal procurement policies. Mr. Speaker, I thank the ranking member, Mr. Connolly, for co-leading this bipartisan initiative with me, and I urge my colleagues to support this commonsense piece of legislation. Mr. CONNOLLY. Mr. Speaker, once again, I believe this is a commonsense approach to contracting. We can't just take a mindless approach to the lowest cost winning every bid. It can jeopardize national security and at the end of the day, it can actually cost more than if we had gone a different way. I thank my friend from Florida for his leadership on this issue. Mr. Speaker, I urge my colleagues to support passage of H.R. 856, and I yield back the balance of my time. Mr. COMER. Mr. Speaker, the Safe and Smart Federal Purchasing Act is measured and targeted legislation that can inform future congressional work on Federal procurement, a policy area we know is ripe for reform and taxpayer savings. Mr. Speaker, I encourage my House co

Referenced legislation: HR856, HR856

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SAFE AND SMART FEDERAL PURCHASING ACT Congressional Record, Volume 171 Issue 40 (Monday, March 3, 2025) [Congressional Record Volume 171, Number 40 (Monday, March 3, 2025)] [House] [Pages H932-H933] From the Congressional Record Online through the Government Publishing Office [ www.gpo.gov ] SAFE AND SMART FEDERAL PURCHASING ACT Mr. COMER. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 856) to require the Director of the Office of Management and Budget conduct a review to determine the impact of the lowest price technically acceptable source selection process on national security, and for other purposes. The Clerk read the title of the bill. The text of the bill is as follows: H.R. 856 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Safe and Smart Federal Purchasing Act''. SEC. 2. REVIEW TO DETERMINE THE IMPACT OF THE LOWEST PRICE TECHNICALLY ACCEPTABLE SOURCE SELECTION PROCESS ON NATIONAL SECURITY. (a) Review.--The Director shall review the procurement management practices of Defense and Civilian agencies to determine whether the provisions of section 15.101-2 of the Federal Acquisition Regulation have created any national security risk. (b) Report.--Not later than 180 days after the enactment of this Act, the Director shall submit a report on the results of the review under subsection (a) to-- (1) the Committee on Oversight and Government Reform of the House of Representatives; and (2) the Committee on Homeland Security and Governmental Affairs of the Senate. (c) Definitions.--In this section: (1) Defense and civilian agency.--The term ``Defense and Civilian agency'' has the meaning given the term ``agency'' in section 133 of title 41, United States Code. (2) Director.--The term ``Director'' means the Director of the Office of Management and Budget. The SPEAKER pro tempore. Pursuant to the rule, the gentleman from Kentucky (Mr. Comer) and the gentleman from Virginia (Mr. Connolly) each will control 20 minutes. The Chair recognizes the gentleman from Kentucky. General Leave Mr. COMER. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on this measure. The SPEAKER pro tempore. Is there objection to the request of the gentleman from Kentucky? There was no objection. Mr. COMER. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, the lowest price technically acceptable, LPTA, is a source selection method outlined in the Federal Acquisition Regulation. This process uses price as a determining factor for a contract rather than other technical or operational factors. Following legislative work done by the House Oversight Committee during the 115th Congress, constraints were placed on agency use of the LPTA in the fiscal year 2019 National Defense Authorization Act. These constraints recognize that the LPTA criteria are not always appropriate for agencies seeking complex or technically innovative services. For instance, this can result in agencies sacrificing long-term value for short-term savings. We also do not want the LPTA to be used in a manner that jeopardizes national security. This bill requires the Director of the Office of Management and Budget to evaluate this source selection process to determine whether agencies are [[Page H933]] using the LPTA in an appropriate manner. Mr. Speaker, I thank my Oversight Committee colleague, Mr. Donalds, for his leadership on this bill, and I reserve the balance of my time. Mr. CONNOLLY. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise in strong support of the Safe and Smart Federal Purchasing Act of which I am a proud cosponsor. The bill would require the Director of the Office of Management and Budget to review the procurement management practices of Federal agencies to determine whether the use of acquisition procedures focused exclusively on cost, known as the lowest price technically acceptable, poses any national security risk. Since our committee reported this bill last Congress, I appreciate that the majority sought and incorporated feedback from the administration. When Federal agencies purchase goods and services, they aim to achieve the best value for the American people. In the words of the Federal Acquisition Regulation, ``best value'' means that the acquisition should provide ``the greatest overall benefit in response to the requirement.'' Under the LPTA procedures, price is the determining factor in awarding a contract with no consideration given to other factors. This contrasts with the more frequently used tradeoff approach, which looks at the bigger picture and considers additional factors beyond just cost, perhaps assessing elements like quality and performance or a bidder's technical or managerial expertise. This bill, and the tradeoff approach to Federal contracting, understands that focusing on contract price alone can actually increase the overall cost to the Federal Government and the American people. For example, cutting costs in the short-term can lead to expensive project delays, or might result in taxpayer dollars flowing to adversarial nations that threaten U.S. security interests. If no consideration is given to the strength and integrity of a bidder's supply chain, cutting costs in the short term could lead to inferior products or disastrous supply shortages at critical moments. I believe this is a thoughtful, commonsense approach to contracting. Mr. Speaker, I urge my colleagues to support the bill, and I reserve the balance of my time. Mr. COMER. Mr. Speaker, I yield 5 minutes to the gentleman from Florida (Mr. Donalds), a rising star. Mr. DONALDS. Mr. Speaker, I would be remiss without thanking Chairman Comer for the time on the floor today, and I might have to ask the chairman to introduce me everywhere going forward. I greatly appreciate that. Mr. Speaker, I rise in strong support of my bill, the Safe and Smart Federal Purchasing Act. For background, lowest price technically acceptable is the source selection method outlined in the Federal Acquisition Regulation, or FAR. Simply put, the LPTA FAR standard prioritizes price above everything else. Focusing on price, instead of other technical or operational factors in Federal procurement, can result in agencies cutting corners, long- term value being sacrificed, or in its worse aspects, even potential risks to America's national security. In my view, the use of the LPTA may not always be appropriate when Federal agencies purchase innovative technologies and technical services, and agencies should have the flexibility to pay more for a superior solution if the circumstances are appropriate. I will say to the American people that, obviously with all of the things that we are talking about in Washington around the Department of Government Efficiency, better known as DOGE, going through and trying to cut costs, we do have to be mindful that we are getting the best products for the Federal Government to use because that actually does yield great results for the American people. Moreover, we, as Congress, have an obligation to fully understand the impacts of utilizing the LPTA. One example of when the LPTA may not be appropriate relates to the procurement of Chinese drones. Chinese drone maker, DJI, is the world's largest manufacturer of personal and professional drones, and Federal agencies to this day utilize DJI drones, which present a large national security risk. Why would Federal agencies procure Chinese drones when there are higher-quality American drones currently available on the market? That is when the lowest price technically acceptable FAR standard may come into play. To provide some additional context, Chinese state-backed DJI aggressively dropped its prices in 2015 and now DJI drones account for more than 75 percent of the global drone marketplace, offering its products in over 100 countries. While a wide range of innovative American drone products are available, in many cases, the LPTA slides the Federal procurement preference scale away from American drones in favor of these Chinese drones merely because they are cheaper. To emphasize, all companies in China are required by Chinese law to give the Communist Chinese Party access to all their information upon request. In fact, in August 2017, Homeland Security Investigations issued an intelligence bulletin warning that DJI was providing critical infrastructure and law enforcement data to the Chinese Government. Today, the lowest price technically acceptable does not account for national security implications, so my bill would simply require an evaluation of potential national security concerns associated with the LPTA FAR standard. Instead of just looking at the initial price tag and procuring the cheapest product and service, it is vitally important that the United States Government understand the national security implications associated with its own Federal procurement policies. Mr. Speaker, I thank the ranking member, Mr. Connolly, for co-leading this bipartisan initiative with me, and I urge my colleagues to support this commonsense piece of legislation. Mr. CONNOLLY. Mr. Speaker, once again, I believe this is a commonsense approach to contracting. We can't just take a mindless approach to the lowest cost winning every bid. It can jeopardize national security and at the end of the day, it can actually cost more than if we had gone a different way. I thank my friend from Florida for his leadership on this issue. Mr. Speaker, I urge my colleagues to support passage of H.R. 856, and I yield back the balance of my time. Mr. COMER. Mr. Speaker, the Safe and Smart Federal Purchasing Act is measured and targeted legislation that can inform future congressional work on Federal procurement, a policy area we know is ripe for reform and taxpayer savings. Mr. Speaker, I encourage my House co Referenced legislation: HR856, HR856