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 indicates obligating just over $2.5 billion in competitive FY14 awards YTD where only one vendor response was received.
In our review we only consider contract actions where the extent competed was 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 actions marked as Follow-On To Competed Action in our totals for competed buys. Additionally, we do not include modifications in our result, only the original action obligations.
A few years ago, 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. What about the ensuing modifications that increase funding after the initial obligation?
Based on having this added insight, would you change your capture approach if you knew competition for what you were selling was significantly lower than anticipated?
The GovCon One-Off(er) Report summarizes recent purchases for federal agencies, small business contracting, types of awards and the competition types that most often result in a purchase being made where only "one offer was received."
If you don't mind, let's keep this between us.
TOP PLACE OF PERFORMANCE
When we pulled FY14 YTD data for competitive federal contract spending for one-offer buys, we found $2.4B in obligations that referenced United States as principal place of performance, but a review of PoP's by U.S. State revealed $2.1B in obligations that did not identify a specific location in the U.S. Here are the top five U.S.State's referenced as PoP's for this report accounting for $245M in obligations:
TOP CONTRACTING AGENCIES
Of 136 contracting agencies listed, the top five by spending at the time of the report were:
- Department of Veterans Affairs
- Department of Education
- Federal Prison System
- Federal Acquisition Service
- National Institutes of Health
These organizations account for $1.4 billion of YTD obligations.
Here's a look at obligations by extent competed:
- Full and Open Competition ($1.9B)
- Full and Open Competition After Exclusion of Sources ($192M)
- Competed Under SAP ($379M)
AWARD or IDV TYPE
This section details obligations by Award or Indefinite Delivery Vehicle (IDV) Type:
- Delivery Order ($1.7B)
- BPA Call ($495M)
- Purchase Order ($199M)
- Definitive Contract ($110M)
- IDC ($5.5M)
- BPA ($42K)
TOP SMALL BUSINESS SET-ASIDES
FY14 YTD, agencies have obligated $232M to one-offer small business set-asides. Here's a look at obligations by set-aside type:
- Total Small Business Set-Aside ($153M)
- Service Disabled Veteran Owned Small Business Set-Aside ($30M)
- 8(a) Competed ($199M)
- HUBZone Set-Aside ($11M)
- Partial Small Business Set-Aside ($5M)
- Veteran Set-Aside ($1M)
NOTE: Although we specified competitive methods in the FPDS-NG report, $10M in 8(a), SDVOSB and HUBZone sole source obligation were on the report. After verifying our criteria, we found several actions listed as competitive buys that were in fact, sole source awards.
OVERALL ONE-OFF(ER) OBLIGATIONS TO SMALL BUSINESS
Of competitive one-offer obligations YTD, agencies have awarded $675 million to small business (regardless of set-aside).
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 January 21, 2014 - FY14 YTD Summary