Issue: Contract Duplication. Across the federal enterprise there has been an explosion in the number of multiple award IDIQ contracts for the same or similar services.
Contract duplication increases bid and proposal and administrative costs for customer agencies and contractors. Contractors are compelled to compete for contracts for fear of being locked out of a market. At the same time there are many IDIQ contracts with little or no sales/purchases compounding the costs to industry and government over the long term. Contract duplication negatively impacts all contractors but is especially challenging for small business concerns who have limited resources to compete for new IDIQs.
Recommendation: The FAR preferences/priorities for pre-existing contracts should be strengthened. The language in FAR 17.5 requiring a determination as to best procurement method when utilizing an interagency contract program like the GSA schedules should be expanded to require a determination of best procurement method for new, open market procurements. In addition, the business case thresholds for new IDIQ contracts should be lowered. Currently, many in industry believe agencies are skirting the business case requirement by lowering the estimated value of new procurements.