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Task Order Spending Continues to Climb

Spending on multiple award task order contracts jumped by 39% in fiscal 2007, as large agencies continued to look first to their own contract vehicles rather than GSA’s governmentwide acquisition contracts, according to the research firm Input.

The biggest growth was recorded in individual agencies’ contracts, such as the Navy’s SeaPort, and GWACs operated by agencies other than GSA, such as NASA’s SEWP.

Input said procurements on task order contracts topped $21 billion. “They allow agencies to speed the acquisition process, avoid scrutiny and have more control over the vendors who are able to bid,” said Kevin Plexico, the firm’s executive vice president.

“As agencies rely more and more on these types of vehicles, agencies should expect heightened scrutiny from Congress and the small business community concerned about the impact of these vehicles on competition.”

The administrator of the Office of Federal Procurement Policy, Paul Denett, called the growth of task order contracts “one of the most significant trends of the past decade.” He said they now account for more than half of federal procurement dollars.

Denett and other OFPP officials have expressed concern about competition for task orders. He told the House Small Business Committee last month that regulators are writing new rules in four categories:

*Requiring public notice of orders awarded on a sole source basis;

*Requiring contracting officers to get at least three offers on GSA schedule purchases, as the Defense Department already does, and to give fair notice to all contract holders on other multiple-award contracts;

*Clear statements of requirements, greater disclosure of evaluation criteria, reasonable response times, and documentation of the basis for best-value award decisions; and

*Post-award debriefings for unsuccessful offerors.

Researchers at the Center for Strategic and International Studies warned last year that winning a place on multiple award task order contracts has become vital for services contractors. The report also warned that the need to compete for many such contracts was driving up costs for contractors. (SAA,

OFPP has identified more than 200 enterprise-wide contracts operated by individual agencies, along with 54 interagency contracts and 13 GWACs. Agency officials have said they may take steps to control the creation of new task order contracts.


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