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Contracting Officers Told To Buy Brand X

The Office of Federal Procurement Policy has issued another reminder to agencies to avoid specifying brand names in procurement.

In an April 17 memorandum, Acting Administrator Robert Burton wrote, “Agencies should encourage their acquisition professionals to limit the use of brand name specifications and maximize competition.”

He said an amendment to the Federal Acquisition Regulation is being prepared to require a written justification of any procurement that specifies a particular brand. Last year OFPP told government buyers to begin preparing such justifications.

Burton said the justification or documentation for the use of a brand name must be posted with the solicitation at FedBizOpps or on e-Buy for GSA schedule procurements. The requirement applies to purchases over $25,000, including simplified acquisitions and sole-source awards.

The FAR allows brand-name specifications when the contracting officer determines that only one product will meet the government’s needs.

Computer-chip manufacturer Advanced Micro Devices applauded the memo. “OMB is once again demonstrating its commitment to foster choice and open competition in government procurement,” said Sue Snyder, AMD vice president and executive legal counsel. “This change will help government agencies choose from the best products at the fairest prices for American taxpayers.”

“The decision to include simplified acquisitions and sole source procurements, two commonly used practices, really raises the bar for standards of accountability to the American public,” she added.

AMD, which competes with the giant chipmaker Intel, commissioned a study of the issue by Cal Tech Professor R. Preston McAfee. He found that two-thirds of the applicable solicitations for computer systems and technology in 2004 contained language that either required specific name-brand microprocessors or specified that the processor should be equivalent to a particular brand, the company said.

McAfee estimated that brand-name specifications in contracts for computer hardware have cost American taxpayers up to $563 million.


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