The Securing American Firms and Expertise in Services Act would require the Secretary of Defense to revise the DoD Supplement to the Federal Acquisition Regulation to give a preference to offerors that are United States companies for contracts to procure professional services. The preference would apply to the maximum extent practicable and be conditioned by national security considerations.
The bill also sets out a waiver mechanism: waivers may be issued if adhering to the preference would prevent meeting an urgent operational requirement or if no United States firm can fulfill the contract in a timely or cost-effective manner, with the waiver in writing and reported to congressional defense committees within 30 days. Finally, the bill defines a United States company and lists professional services categories eligible for the preference, including engineering, architecture, design, environmental and financial consulting, program management, and legal services, plus other services defined in FAR.
At a Glance
What It Does
Not later than 180 days after enactment, the Secretary of Defense must revise the DoD FAR Supplement to establish a preference for offerors that are United States companies in contracts for professional services. The mechanism is limited by the maximum practicability standard and national security interests. A waiver process is provided for urgent needs or lack of US-capable bidders.
Who It Affects
DoD contracting officers issuing professional services contracts, and United States–based professional services firms that meet ownership and location criteria. Non-US firms competing for DoD professional services may face more limited access depending on eligibility.
Why It Matters
Sets a domestic-preference benchmark for professional services in defense procurement, with potential implications for competition, pricing, and supply-chain resilience in the national security context.
More articles like this one.
A weekly email with all the latest developments on this topic.
What This Bill Actually Does
The bill introduces a targeted foreign ownership preference for DoD professional services procurements. Within 180 days of enactment, DoD must adjust its acquisition rules to favor United States–based offerors when contracting for professional services such as engineering, architecture, design, environmental and financial consulting, program management, and legal work.
The preference is constrained by national security considerations and the reality that sometimes a non-US firm may be necessary. To manage these exceptions, the act allows waivers, provided the Secretary of Defense documents the rationale in writing and notifies the relevant defense committees within 30 days of issue.
The bill also defines what qualifies as a United States company and what counts as professional services, giving contract officers a clear framework to implement the policy.
The Five Things You Need to Know
Not later than 180 days after enactment, DoD must revise the DoD FAR Supplement to implement a US-based preference for professional services.
The preference applies to contracts for professional services such as engineering, architecture, design, environmental and financial consulting, program management, and legal services.
Waivers are allowed if the preference would impede urgent operations or if no US firm can meet requirements in a timely or cost-effective way, with written justification and congressional notice.
A United States company is defined as a US-organized business with a principal place of business in the US and not owned/controlled by a foreign entity; 50%+ ownership in a joint venture suffices.
The bill targets DoD professional services procurements and is focused on procurement mechanics, not broad policy shifts across all government contracting.
Section-by-Section Breakdown
Every bill we cover gets an analysis of its key sections.
Short title
The act may be cited as the Securing American Firms and Expertise in Services Act, or the SAFE Services Act. This establishes the naming and scope for the policy focused on defense-related professional services procurement.
General rule: US preference in professional services
Not later than 180 days after enactment, the Secretary of Defense shall revise the DoD Supplement to the FAR to ensure a preference for offerors that are United States companies in professional services contracts. The preference is to be applied to the maximum extent practicable and consistent with national security.
Waiver authority
The Secretary may waive the preference for a contract if adherence would prevent meeting an urgent operational requirement or if no US company is capable of fulfilling the contract in a timely or cost-effective manner. Waivers must be issued in writing, include a justification, and be reported to the defense committees within 30 days of issuance.
Definitions
Defines United States company as an entity organized under US law with its principal place of business in the United States and not directly or indirectly owned or controlled by a foreign entity; includes US-owned joint ventures with ownership at least 50%. The term professional services includes engineering, architecture, design, environmental consulting, financial consulting, program management, legal, and other services defined in the FAR.
This bill is one of many.
Codify tracks hundreds of bills on Defense across all five countries.
Explore Defense in Codify Search →Who Benefits and Who Bears the Cost
Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- US-based professional services firms that meet the ownership and location criteria gain access to DoD contracts with a preferential treatment in bidding.
- Joint ventures in which a US-owned partner holds at least 50% ownership qualify for the preference, encouraging domestic collaboration.
- DoD contracting officers receive a clear rule-set and a formal waiver process to handle exceptions while pursuing national security objectives.
Who Bears the Cost
- Foreign-owned or non-US firms may face reduced competitiveness for DoD professional services contracts.
- DoD procurement timelines could lengthen if agencies need to verify US-ownership status and manage a new waiver process.
- Potentially higher procurement costs if domestic firms command premiums in some professional service areas, or if competition narrows due to eligibility constraints.
- Compliance and administration burdens for DoD and contractors in documenting and reporting waivers and ownership verifications.
Key Issues
The Core Tension
The central dilemma is balancing a strong domestic procurement preference with the realities of urgent DoD needs and global supply chains. A rigid preference could constrain competition or raise costs, while a flexible waiver mechanism risks eroding the policy’s effectiveness if overused.
The bill creates a focused but potentially disruptive shift in how DoD procures professional services by prioritizing US ownership. While the intent is to strengthen the domestic industrial base and align procurement with national security interests, the mechanism introduces a trade-off between immediacy and competition.
Implementing the “maximum extent practicable” standard alongside a formal waiver process will require careful oversight to avoid unnecessary procurement delays or reduced competition. The definition of “United States company” hinges on ownership and control, which could become complex in multinational joint ventures or supplier networks.
The scope of “professional services” is anchored by the FAR, but the bill also allows for additions, creating a dynamic threshold for eligibility over time.
Try it yourself.
Ask a question in plain English, or pick a topic below. Results in seconds.