[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3541 Introduced in Senate (IS)]

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119th CONGRESS
  1st Session
                                S. 3541

To increase competition in Defense contracting, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 17, 2025

  Mr. Peters introduced the following bill; which was read twice and 
              referred to the Committee on Armed Services

_______________________________________________________________________

                                 A BILL


 
To increase competition in Defense contracting, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. INCREASING COMPETITION IN DEFENSE CONTRACTING.

    (a) Uses of Past Performance.--
            (1) In general.--Not later than 1 year after the date of 
        the enactment of this Act, the Secretary of Defense shall issue 
        guidance, including examples and templates where appropriate, 
        on--
                    (A) when the Department of Defense should accept 
                past performance on a wider range of projects, such as 
                a requirement without much precedent, in order to have 
                increased competition among eligible firms with 
                capability to perform a requirement, by including 
                commercial or non-government projects as relevant past 
                performance for the purposes of awarding contracts or 
                other agreements;
                    (B) a means by which the Department may validate 
                non-government past performance references, including 
                by requiring an official of an entity providing past 
                performance references to attest to their authenticity 
                and by providing verifiable contact information for the 
                references; and
                    (C) using alternative methods of evaluation other 
                than past performance that may be appropriate for a 
                requirement without much precedent, such as 
                demonstrations and testing of technologies as part of 
                the proposal process for contracts or other awards of 
                the Department.
            (2) Supplement not supplant.--The guidance issued under 
        paragraph (1) shall supplement existing Department of Defense 
        policy and procedures for consideration of past performance and 
        other evaluation factors and methods.
    (b) Enhancing Competition in Defense Procurement.--
            (1) Council recommendations.--Not later than 90 days after 
        the date of the enactment of this Act, the Secretary of Defense 
        shall convene the Defense Acquisition Regulations Council (in 
        this section referred to as the ``Council''), to make 
        recommendations to identify and eliminate specific, unnecessary 
        procedural barriers that disproportionately affect the ability 
        of small business concerns and nontraditional defense 
        contractors, to compete for contracts with the Department of 
        Defense, with a focus on streamlining documentation and 
        qualification requirements unrelated to the protection of 
        privacy and civil liberties.
            (2) Consultation.--The Council shall obtain input from the 
        public, including from the APEX Accelerators program (formerly 
        known as the Procurement Technical Assistance Center network) 
        and other contractor representatives, to identify procurement 
        policies and regulations that are obsolete, overly burdensome 
        or restrictive, not adequately harmonized, or otherwise serve 
        to create barriers to small business concerns and 
        nontraditional defense contractors contracting with the 
        Department or that unnecessarily increase bid and proposal 
        costs.
            (3) Examination of actions.--The Council shall consider the 
        input obtained under paragraph (2) and any other information 
        determined to be relevant by the Council to identify 
        legislative, regulatory, and other actions to increase 
        competition and remove barriers to small business concerns and 
        nontraditional defense contractors participating in the 
        procurement process of the Department of Defense.
            (4) Implementation.--Not later than 2 years after the date 
        of the enactment of this Act, the Secretary of Defense shall 
        implement the regulatory and other non-legislative actions 
        identified under paragraph (3), as determined necessary by the 
        Secretary, to remove barriers to entry for small business 
        concerns and nontraditional defense contractors seeking to 
        participate in Department of Defense procurement.
            (5) Briefing.--Not later than two years after the date of 
        the enactment of this Act, the Secretary of Defense shall 
        provide to the Committees on Armed Services of the Senate and 
        House of Representatives a briefing on the legislative actions 
        identified under paragraph (3) and the actions implemented 
        under paragraph (4).
    (c) Consideration of Cost-Efficiency and Qualify.--The Secretary of 
Defense shall advocate for and prioritize contracting policies that 
ensure that cost efficiency and quality of goods and services are key 
determining factors in awarding procurement contracts.
    (d) Definitions.--In this section--
            (1) the term ``nontraditional defense contractors'' has the 
        meaning given such term in section 3014 of title 10, United 
        States Code; and
            (2) the term ``small business concern'' has the meaning 
        given such term under section 3 of the Small Business Act (15 
        U.S.C. 632).
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