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GovCon One-Off(er) Report™ for May 20, 2013: New York

Sunday, May 19, 2013   (0 Comments)
Posted by: Guy Timberlake
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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 $82.6 billion in FY13 awards YTD where only one vendor response was received. FPDS-NG indicates more than 520,000 contract actions* were processed in arriving at this total.

If we review competed vs. non-competed awards, we end up with $21.6 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."

When we pulled FY13 YTD data for total federal contract spending where The Empire State was place of performance, we found that thirty-six (36) federal agencies, boards and commissions have combined to spend just under $2 billion in goods and services buys where only one offer was 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 15,997 contract actions* during the report period.

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

  1. Department of Defense**
  2. Department of Energy
  3. Department of Veterans Affairs
  4. Department of Homeland Security
  5. Department of Health and Human Services

These organizations account for $1.78 billion of the total YTD spending for this place of performance.

Of the 105 contracting agencies referenced in this report, the top five contracting agencies by spending were:

  1. Department of the Navy**
  2. Department of Energy
  3. Department of the Army**
  4. Department f Veterans Affairs
  5. Defense Logistics Agency**

These agencies account for $1.33 billion of the total YTD spending.

Of the top five contracting agencies, the top contracting office at each combined to spend $941 million of the YTD total. The top contracting office for each of the top five contracting agencies is:

  1. Naval Air Systems Command
  2. Chicago Service Center (Office of Science)/Department of Energy
  3. Army Contracting Command - Aberdeen Proving Ground
  4. Network Contracting Office 03/Veterans Affairs
  5. DLA Aviation at Philadelphia, PA

The top five (5) competition types (of 10 used) for this place of performance account for $1.948 billion of the total YTD spending. (NOTE: There is a net of $1.7M awarded via delivery order that did not specify an extent competed.)

They are:

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

For this place of performance, federal agencies have awarded just under $724 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

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:

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

Of the total dollars awarded YTD, agencies have only awarded $250 million to small business.

Of the 644 NAICS Codes designated in these purchases YTD, the top five (5) NAICS Codes for this place of performance account for just over $1.1 billion of this location's total one-offer spending. 102 NAICS Codes had obligations totaling $1M or more for this period and place of performance.

The top five NAICS (by description) are:

  • All Other Professional, Scientific and Technical Services
  • Aircraft Manufacturing
  • Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
  • Search, Detection, Navigation, Guidance, Aeronautical and Nautical System and Instrument Manufacturing
  • Other Aircraft Parts and Auxiliary Equipment Manufacturing

"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 May 20, 2013: New York

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