June 13 2008 Copyright 2008 Business Research Services Inc. 301-229-5561 All rights reserved.

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New Controls For Interagency Contracting

The Office of Federal Procurement Policy has issued new guidance for the use of interagency contracts such as GSA schedules and governmentwide acquisition contracts.

In a June 6 memo, OFPP Administrator Paul Denett said, “Lack of clear lines of responsibility between agencies with requirements (requesting agencies) and the agencies which provide acquisition support and award contracts on their behalf (servicing agencies) has contributed to inadequate planning, inconsistent use of competition, weak contract management, and concerns regarding financial controls.”

One goal of the new guidance is to clarify the responsibilities of the requesting agency and the servicing agency. The document provides a checklist setting out who is responsible for what.

Starting Oct. 1, contracting officers must consider several factors, including price, to determine whether use of an interagency contract is in the best interest of the government.

OFPP has said that task and delivery orders accounted for more than half of federal procurement dollars in 2005, up from 14% in 2001. Last year the office completed the first census of interagency contracts. It found there are 54 multi-agency contracts, in addition to 13 GWACs and more than 200 agencywide contracts that may duplicate some of the interagency vehicles. (SAA, 6/29/07)

Denett announced steps to improve “the governance structure” of interagency contract vehicles. His office has authority to decide whether a new GWAC should be created or an existing one continued. Denett said he will work with the Chief Acquisition Officers Council to establish a similar review process for multi-agency contracts other than GWACs.

Denett plans new rules to increase competition on interagency contracts. Several bills pending in Congress address the same issue.


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