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GovCon One-Off(er) Report™ for June 9, 2013: Ohio

Posted By Guy Timberlake, The American Small Business Coalition, LLC, Monday, June 10, 2013

Ever wonder how many dollars are awarded by government agencies when only a few companies respond? What about when only one company responds? As of this report Uncle Sam reports obligating just over $90 billion in FY13 awards YTD where only one vendor response was received. For principal place of performance, these awards were dispersed to 203 countries in addition to the U.S. and its territories.

If we review competed vs. non-competed awards, we end up with $23.3 billion awarded where the extent competed was either Full and Open Competition, Full and Open Competition After Exclusion of Sources, Competed Under Simplified Acquisition Procedures or Competitive Delivery Order. We do not include acions marked as Follow-On To Competed Action in our totals for competed buys.

After an investigation of some DoD awards, GAO cited an error rate of about ten percent for orders tagged as having only received one offer. Even if we assumed half of the current competitive dollars awarded were incorrectly represented, there are still billions of dollars awarded this fiscal year where competition was apparently very low.

Would you change your approach if you knew competition for what you sell was significantly lower than what you had anticipated or been told?

The GovCon One-Off(er) Report summarizes recent purchases for the agencies, the goods and services and types of awards that most often result in a purchase being made where only "one offer was received."

PLACE OF PERFORMANCE: Ohio
When we pulled FY13 YTD data for total federal contract spending where The Buckeye State was place of performance, we found that twenty-nine (29) federal agencies, boards and commissions have combined to spend just over $1 billion in goods and services buys where only one offer was reported received. The total dollars referenced is based on competitive and non-competitive purchases as of the date of this report.

FPDS-NG indicates there were 16,367 contract actions* during the report period.

TOP CONTRACTING DEPARTMENTS
The top five contracting departments by spending at the time of the report were:

  1. Department of Defense**
  2. Department of Veterans Affairs
  3. General Services Administration
  4. National Aeronautics and Space Administration
  5. Department of Health and Human Services

These organizations account for $974 million of the total YTD spending for this place of performance.

 

TOP CONTRACTING AGENCIES
Of the 87 contracting agencies referenced in this report, the top five contracting agencies by spending were:

  1. Department of the Army**
  2. Defense Logistics Agency**
  3. Department of the Air Force**
  4. Department of Veterans Affairs
  5. Federal Acquisition Service

These agencies account for $839 million of the total YTD spending.

TOP CONTRACTING OFFICES
The top five contracting offices (of 566) combined to spend $439 million of the YTD total. The top contracting offices are:

  1. W6QK ACC-RSA/Redstone Arsenal/Department of the Army
  2. DLA Aviation at Oklahoma City, OK
  3. GSA/FAS Assisted and Expanded Acquisition
  4. DLA Aviation
  5. FA8214 AFNWC PZBE and PZBF/Department of the Air Force

EXTENT COMPETED
The top five (5) competition types (of 9 used) for this place of performance account for $1.948 billion of the total YTD spending.

They are:

  • Not Competed
  • Full and Open Competition
  • Not Available for Competition
  • Full and Open Competition After Exclusion of Sources
  • Not Competed Under SAP

COMPETITIVE DOLLARS
For this place of performance, federal agencies have awarded just over $373 million in competitive one-offer awards. This number includes actions designated as (does not include follow-on's to competed actions):

  • Full and Open Competition
  • Full and Open Competition After Exclusion of Sources
  • Competed Under SAP (Simplified Acquisition Procedures)
  • Competitive Delivery Order

TOP AWARD or IDV TYPE
Four (4) award or IDV (indefinite delivery vehicle) types for this location account for all spending YTD. The top award types in order of most dollars awarded YTD are:

  • Delivery Order
  • Definitive Contract
  • Purchase Order
  • BPA Call

ONE-OFF(ER) DOLLARS AWARDED TO SMALL BUSINESS
Of the total dollars awarded YTD, agencies have only awarded $207 million to small business.

TOP NAICS CODES
Of the 520 NAICS Codes designated in these purchases YTD, the top five (5) NAICS Codes for this place of performance account for just over $564 million of this location's total one-offer spending. 91 NAICS Codes had obligations totaling $1M or more for this period and place of performance.

The top five NAICS (by description) are:

  • Engineering Services
  • Aircraft Engine and Engine Parts Manufacturing
  • Other Aircraft Parts and Auxiliary Equipment Manufacturing
  • Search, Detection, Navigation, Guidance, Aeronautical and Nautical System and Instrument Manufacturing
  • Research and Development in the Physical, Engineering and Life Sciences (Except Biotechnology)

TOP PSC CODES
Of 788 Product/Service Code referenced, the top five account for $408 million in spending for this period and place of performance. They are:

  • Support - Management: Logistics Support
  • Gas Turbines and Jet Engines, Aircraft, Prime Moving and Components
  • Technical Representative - Guided Missiles
  • Support - Professional: Other
  • Operation Training Devices

"Offer" Defined
The term "offer" appears to have dual meaning's based on context as related to FPDS-NG. According to the FAR "Offer” means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. The FAR also specifies that responses to requests for quotations (simplified acquisition) are considered "quotations” and not offers. Generally, within FPDS-NG and where reporting for this data element is required, an offer is any response to an RFP or RFQ.

* Contract Actions
"Contract action” means any oral or written action that results in the purchase, rent, or lease of supplies or equipment, services, or construction using appropriated dollars over the micro-purchase threshold, or modifications to these actions regardless of dollar value. Contract action does not include grants, cooperative agreements, other transactions, real property leases, requisitions from Federal stock, training authorizations, or other non-FAR based transactions.

** Department of Defense Reporting Delay
For public users of FPDS-NG, Department of Defense contract actions are delayed 90 days due to operational security (OPSEC).

Our Article Series
The GovCon One-Off(er) Report™ is presented as part of The American Small Business Coalition's education and market intelligence initiative to help support decision-making for small government contractors.

GovCon One-Off(er) Report™ is presented by:

GovCon One-Off(er) Report™ for June 9, 2013: Ohio

 

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