August 7 2009 Copyright 2009 Business Research Services Inc. 301-229-5561 All rights reserved.

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Agencies Seek Competition in 8(a) Contracts

Several agencies are backing away from 8(a) sole-source awards on projects funded by the Recovery Act.

The agencies have received permission to compete 8(a) contracts for IT and construction that would normally be awarded on a sole-source basis – that is, contracts amounting to less than $3.5 million, or $5.5 million for manufacturing.

Guidance from the Office of Management and Budget permits agencies to seek blanket waivers so they can avoid sole-source awards. Both the Obama administration and the Recovery Act have emphasized the need for competitive bidding in spending economic stimulus money.

SBA said it has granted blanket waivers for construction to the Army Corps of Engineers in Washington and its St. Paul, MN, district; the Army in Vicksburg, MS; the Interior Department, office of the secretary; the Transportation Department’s Federal Highway Administration and Federal Lands Highway Program; and the Smithsonian Institution.

Waivers for IT projects have been granted to GSA and the Air Force Mobility Command at Scott AFB, IL.

GSA has also been granted a waiver for construction contracts awarded by its Public Buildings Service, according to a memo from Al Matera, director of the office of acquisition policy.

The waivers will not take work away from the 8(a) program; instead, more 8(a) firms will be allowed to compete for contracts.


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