The Navy plans to buy most IT services through multiple award contracts.

Use of multiple award vehicles is mandatory for new acquisitions and for any follow-on contracts that drew three or fewer offers, according to a memo from Elliot Branch, deputy assistant secretary for research, development and acquisition. For all other IT services requirements, the multiple award contracts are to be given first consideration.

“I don’t know of any other agency that has embraced a whole suite of MACs,” said Jamey Halke, the Navy program manager for strategic sourcing.

The memo listed the GSA Alliant, Alliant Small Business, DISA Encore II, Army ITES-2S, Air Force NETCENTS, NIH GWAC, and the Navy’s Seaport-E contract vehicles as preferred sources.

In an interview, Halke said the purpose of the policy is to reduce transaction costs and increase competition, while leaving Navy customers with a choice of several possible vehicles.

Defense Department officials have said that too many solicitations attract only one offer. Officials describe those as “failed competitions.”

“Analysis has shown that the highest instance of single offers occurs on stand-alone acquisitions,” Halke said. When only one offer is received, it often indicates a bias in favor of the incumbent contractor.

He said each of the multiple award vehicles provides access to dozens or hundreds of contractors, including small ones.

Separately, the Navy has awarded a contract to FedBid Inc. to conduct reverse auctions for commodities and spot purchases. The contract is for up to five years, including options.

The company says more than 50,000 vendors have signed up to bid on its auctions.