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July 18, 2019 By AMK

2019 NDAA analysis: Enhancing IDIQs and other provisions

Over the past several months, this blog has analyzed several key provisions of the Fiscal Year 2019 National Defense Authorization Act (NDAA) that impact government contractors. This post briefly summarizes a variety of other government contracts-related provisions of the FY 2019 NDAA that we have not yet discussed, including several that reflect a congressional intent to enhance the use of multiple-award, indefinite-delivery/indefinite-quantity (IDIQ) contracts and encourage commercial item contracting, several that concern subcontracting and supply-chain considerations, and assorted other issues.

Awarding IDIQ Contracts Without Considering Price to Increase Order-Level Competition.

Section 876 provides a limited exception to the general requirement in 41 U.S.C. § 3306 that agencies must include cost or price to the government as an evaluation factor in evaluating proposals. The exception applies to task-order contracts (i.e., IDIQ contracts) for services that are priced on the basis of hourly rates. Specifically, agencies need not consider price as an evaluation factor for such contracts if:

  1. the agency will award a base contract to every “qualifying offeror”—meaning a responsible source whose proposal conforms to solicitation requirements, meets all technical requirements, and is otherwise eligible for award; and
  2. the agency will consider cost or price to the government in competitions for individual task orders.

This provision applies to non-defense agencies. Defense agencies had previously been granted a similar exception in the FY 2017 NDAA. See 10 U.S.C. § 2305(a)(3)(C).

Congress’s goal, as evidenced by the title to section 876, is “Increasing Competition at the Task Order Level.” By awarding base IDIQ contracts to all compliant proposals, without discriminating between them based on price, agencies are likely to have more contract-holders available to compete for specific work at the task-order level. Use of this mechanism should reduce an important barrier to entry to many potential competitors—not holding the necessary IDIQ contract to compete for work solicited under task order solicitations—and, by increasing competition, could result in lower pricing and better technical offerings at the task order level.

 

 

Keep reading article at: http://www.mondaq.com/article.asp?articleid=810088

Filed Under: Government Contracting News Tagged With: cost analysis, DFARS, DoD, evaluation factor, FAR, GSA, GWAC, IDIQ, multi-year contracts, NDAA, past performance, property acquisition, Section 816, Section 871, Section 876, Section 882, subcontracting, task order

January 19, 2016 By AMK

Proposed DFARS amendment would augment multi-year contract oversight

A proposed rule issued by the Defense Department would allow Congress to put DoD’s multi-year contracts on a shorter leash.

Federal RegisterThe proposal, which the Federal Register published Dec. 30, 2015 seeks to amend the Defense Federal Acquisition Regulation Supplement (DFARS) and implement a requirement under the 2015 National Defense Authorization Act (NDAA).

The proposal would require Congressional defense committees to be notified 30 days before a multi-year contract is terminated.

The NDAA also requires the DFARS to clarify that a multi-year contract can’t be entered into unless the Secretary of Defense certifies in writing no later than 30 days before the contract’s award that it meets certain requirements.

Keep reading this article at: http://www.fiercegovernmentit.com/story/proposed-dfars-amendment-would-augment-multi-year-contract-oversight/2016-01-06

See the proposed rule in the Federal Register at: https://www.federalregister.gov/articles/2015/12/30/2015-32873/defense-federal-acquisition-regulation-supplement-multiyear-contract-requirements-dfars-case

Filed Under: Government Contracting News Tagged With: DFARS, DoD, Federal Register, multi-year contracts, NDAA, proposed rule

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