MAC | The Contracting Education Academy

January 14, 2021 By cs

COFC confirms ‘rule of two’ analysis applies before agency decides to utilize a multiple-award vehicle

The U.S. Court of Federal Claims (COFC) issued a decision on Nov. 30, 2020 that supported the Small Business Administration’s position regarding the Rule of Two analysis requirements for government acquisitions.

The central question surrounding the case was whether the U.S. Army could cancel a Federal Acquisition Regulation (FAR) Part 8 service-disabled veteran-owned small business (SDVOSB) set-aside procurement under the General Services Administration’s Federal Supply Schedule (FSS) and move the requirement to a multiple-award indefinite-delivery, indefinite-quantity (MAIDIQ) contract vehicle that the plaintiff, The Tolliver Group, Inc. (Tolliver), did not hold.

In its protest, Tolliver argued, in part, that the Army’s actions violated the Rule of Two because the agency was required to determine whether two or more small businesses were capable of performing the requirement prior to choosing to put the procurement on the MAIDIQ contract.

The COFC’s decision confirms that the Rule of Two analysis applies before an agency elects to procure a requirement from a multiple-award contract (MAC) vehicle under FAR Part 16.5.

The Rule of Two requires contracting officers to set aside any acquisition over the simplified acquisition threshold for small business participation when there is a reasonable expectation that (1) offers will be obtained from at least two responsible small business concerns and (2) the award will be made at fair market prices.

In Tolliver, the Army argued that a Rule of Two analysis was not required because—according the Small Business Jobs Act, as implemented in 15 U.S.C. § 644(r)—federal agencies have the discretion to issue MACs without first conducting a Rule of Two analysis to determine whether it should be set aside for small businesses.

Keep reading this article at: https://www.jdsupra.com/legalnews/cofc-confirms-rule-of-two-analysis-83418/

June 4, 2020 By cs

Federal procurement spending up $120 billion since 2015

Agencies spent more on procurement in fiscal 2019 than in any of the previous 10 years.

**Click on graphic above to see full GAO infographic.**

And no surprise, agency pending on multiple award contracts for IT and services spiked last year.

Now that all of the 2019 numbers are final, the predictions of a banner year for contractors and agencies when it came to buying products and services came true.

The Government Accountability Office found agencies spent $584 billion on procurement last year, up $20 billion over 2018 and more than $120 billion since 2015.

Bloomberg Government reported that agencies spent $448 billion on procurement in 2014 and a six-year low of $442 billion in 2015.

The Defense Department accounted for $381 billion while civilian agencies spent $205 billion.

Of that, GAO said agencies procured 83.5% of all contracts competitively, up from 64.4% in 2015. DoD continues to struggle with competition as GAO found the Pentagon’s rate dropped to 53.8% in 2019 from 55.4% in 2015.

Keep reading this article at: https://federalnewsnetwork.com/reporters-notebook-jason-miller/2020/06/federal-procurement-spending-up-120b-since-2015/

May 15, 2018 By AMK

New OFPP strategy targets 13 percent reduction of duplicative contracts by 2020

The Office of Federal Procurement Policy (OFPP) has been trying to solve contract duplication for almost a decade.

OFPP required agencies to justify new multiple award contracts by submitting business cases. That had limited success.

OFPP tried to create catalogs of existing contracts so agencies could see what was out there first before going down the path of a new contract. That had even less success.

Now OFPP is trying to use category management and its subcategory best-in-class contracts to shrink the number of technology, professional services, transportation and logistics and seven other categories where the number of MACs has grown and grown for decades.

Each category manager developed new strategies for 2018 with goals across four broad areas. Without a doubt, reducing contract duplication and ensuring small businesses aren’t left behind are going to be the hardest to achieve.

Keep reading this article at: https://federalnewsradio.com/reporters-notebook-jason-miller/2018/04/new-ofpp-strategy-targets-13-percent-reduction-of-duplicative-contracts-by-2020

July 21, 2017 By AMK

Number of multiple award contracts drop — Will OMB’s new requirements continue the trend?

Efforts to stop the proliferation of multiple award contracts have found limited success. Data from Bloomberg Government shows that while the number of MACs governmentwide — Defense Department and civilian agencies — have dropped since 2012, there still are more than 2,600.

The total number of MACs have dropped by 239 in the five years since the Office of Management and Budget implemented the requirement to submit a business case for any new multiple award contract that will be worth more than $50 million over the life of the vehicle.

The 8 percent reduction comes as spending on MACs increased by $5 billion in 2016, as compared to 2015. Bloomberg Government reported in April that spending on these contract vehicles increased to $111 billion last fiscal year from $106 billion the year before.

Keep reading this article at: https://federalnewsradio.com/reporters-notebook-jason-miller/2017/06/multipleawardcontractsdrop/

October 24, 2016 By AMK

Sticks and stones: How words and terms of art can hurt the contracting profession

Contracting professional need precision in words and terms, as contract interpretation turns on minute differences in terminology and definitions.

mastery-of-words-oct-2016 Misuse of terms of art in the contracting profession leads to confusion, misunderstanding, and pernicious misconceptions. Clarity in contracting language improves professionalism and avoids inefficient or wasteful procedures.

Words, terms of art, and definitions do not get the respect they deserve. People calling themselves contracting professionals blithely misuse them. Seasoned practitioners — who should know better — stay silent and allow bad habits to persist.

This article turns the spotlight on several frequently misused and abused terms of art, but it is not an exhaustive list.

Read on to explore several flagrantly abused terms of art regarding justifications and scope of the contract: http://www.wifcon.com/analy/Sticks_and_Stones.pdf

The U.S. Court of Federal Claims (COFC) issued a decision on Nov. 30, 2020 that supported the Small Business Administration’s position regarding the Rule of Two analysis requirements for government acquisitions.

Agencies spent more on procurement in fiscal 2019 than in any of the previous 10 years.

The Office of Federal Procurement Policy (OFPP) has been trying to solve contract duplication for almost a decade.

Efforts to stop the proliferation of multiple award contracts have found limited success. Data from Bloomberg Government shows that while the number of MACs governmentwide — Defense Department and civilian agencies — have dropped since 2012, there still are more than 2,600.

Contracting professional need precision in words and terms, as contract interpretation turns on minute differences in terminology and definitions.

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