Been Awarded a GSA Schedule, GWAC, BPA or Other Indefinite Delivery Contract? Are Your Eyes on the Q4 Prize?The Chief Visionary
My last submission discussed Just How Much Competition Occurs In 'Competitive' Buys? where the Federal Procurement Data System (FPDS-NG) revealed sixty-two agencies issued a staggering $73B in competitive supplies and services buys where fewer than three offers were received from vendors in each case. This covers millions of individual contracts, delivery orders and task orders all classified as 'competitive' versus sole source or not competed. Trust me, even I'm blown away by this.
I received a lot of offline chatter about what this all means and based on what I see and how I've interpreted the information (which I checked and re-checked multiple times before publishing) and ensuring I understand the relevance of the attributes in the reports, it's either:
- lots of data entry errors (no offense to anyone in government);
- industry choosing not to respond to millions of competitive opportunities;
- companies are not getting their solicitation notifications, or;
- these were sole source buys misclassified in FPDS-NG.
I don't intend to cast aspersions but folks, this is a lot of activity and a lot of dollars going across the proverbial transom. I can't fathom why another company (or five hundred) with a 'spoiler' mentality or one that's just plain hungry wouldn't try to take some of the business that falls in their respective swim lane. There must be a reasonable explanation or two.
Until those explanations show up, here are the stats for FY2014 fourth quarter-to-date. As you review this information keep one thing in mind. Department of Defense is the biggest buyer across the board and in my previous article they own the top spot. Additionally, their obligations don't go public in FPDS-NG until ninety days after the fact. That means the $1B in obligations in this article are from three months ago and their current spending won't show up until after the fiscal year is actually completed.
With that said...
Including modifications, there have been $2.7B in obligations by fifty-two federal agencies, boards and commissions since July 1, 2014 where fewer than three offers were received. The tally is $1.8B where only one offer was received. These numbers include all award and IDV types. Here's the part that really baffles me.
Since the start of FY14 Q4, twenty-six agencies have obligated $552M in initial awards (not including modifications) to Indefinite Delivery Contracts (IDCs) where only one offer was received. IDCs include IDIQs and MACs but not BPAs, GWACs, GSA Schedules or BOAs. The top five contracting agencies making these buys are:
- Health and Human Services
- Veterans Affairs
- Homeland Security
These organizations account for nearly $500M of the Q4 spend where only one offer was received. As I mentioned in the previous piece, I'm only considering actions where the Government classified the buy as 'competitive' but I do not include 'Follow On To Competed Action' as these are sole source buys to me.
The IDCs referenced were issued by sixty-seven different contracting agencies (DLA vs. DoD or CMS vs. HHS for reference) and many appear to be multiple award. If that's the case and your company is in possession of an IDIQ or MAC issued by one of the following departments or one of their agencies, and you are not the recipient of a bunch of these dollars, you might want to check your inbox and take a look at how much has been awarded against your competitors contract vehicles so far this quarter:
- Broadcasting Board of Governors
- Library of Congress
- Smithsonian Institution
- State Department
"The person who says it cannot be done should not interrupt the person doing it."