Public Law 118 – 153: Disaster Contract Improvement Act
Enactment
Public Law 118 – 153, known as the Disaster Contract Improvement Act, was enacted on January 6, 2025.
Purpose
The primary purpose of this Act is to improve the efficiency and effectiveness of the Federal government’s contracting process in response to disasters.
Key Provisions
1. Expedited Contract Execution
The Act establishes streamlined procedures for awarding contracts for disaster response activities. It allows Federal agencies to use a “best value” determination rather than the traditional “lowest price” criterion for certain contracts.
2. Enhanced Flexibility
The Act provides Federal agencies with greater flexibility in modifying contracts during disaster response efforts. It allows for changes to contract terms and conditions, including scope of work, quantities, and timelines, to adapt to changing circumstances.
3. Simplified Closeout Procedures
The Act simplifies the closeout process for disaster response contracts to expedite final payments and reduce administrative burdens.
4. Increased Transparency
The Act requires Federal agencies to make certain contracting information publicly available, including contract awards, modifications, and closeout summaries. This enhances transparency and accountability in the contracting process.
5. Training and Guidance
The Act directs the Federal Emergency Management Agency (FEMA) to develop training programs and guidance materials for Federal agencies on disaster contract management best practices.
6. Reporting and Accountability
The Act mandates that Federal agencies submit annual reports to Congress on the implementation of the Act, including metrics on contracting efficiency, effectiveness, and compliance.
7. Temporary Provisions
Some provisions of the Act are temporary and will expire after a period of time, while others are permanent. The temporary provisions include the expedited contract execution procedures and the increased flexibility for contract modifications.
Significance
Public Law 118 – 153 is expected to have a significant impact on disaster response contracting by:
- Improving the speed and efficiency of contract awards
- Enhancing the flexibility of contracts to meet changing needs
- Simplifying contract closeouts
- Increasing transparency and accountability in the contracting process
- Providing training and support for Federal agencies involved in disaster response contracting
The Act is intended to ensure that the Federal government can effectively and swiftly respond to disasters and provide the necessary support to affected communities.
Public Law 118 – 153 – Disaster Contract Improvement Act
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