September 26 2008 Copyright 2008 Business Research Services Inc. 301-229-5561 All rights reserved.

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Rule Requires Competition for Task, Delivery Orders

Buyers on task and delivery order contracts must now give all awardees a fair opportunity to compete for orders worth more than $5 million.

An interim rule, effective Sept. 17, implements Section 843 of 2008 Defense Authorization Act. The Federal Acquisition Regulation councils said, “The goal is to improve the transparency and accountability of agency award decisions.”

The rule also allows protests on orders above $10 million and permits a vendor to request a debriefing on orders over $5 million.

Congress moved to require increased competition for task and delivery orders as the use of those contracts grew rapidly in recent years. The Office of Federal Procurement Policy said last year that task order contracts now account for more than half the government’s spending on services.

In addition to GSA schedules, OFPP has identified more than 200 task order contracts established by individual agencies, such as the Navy’s Seaport and Homeland Security’s Eagle and First Source.

The interim rule is FAC 2005-27, FAR case 2008-006. Comments are due Nov. 17.

Other FAR changes:

A final rule in FAR Case 2008-002 allows agencies to continue using simplified procedures to purchase commercial items worth up to $5.5 million until January 1, 2010.

A final rule in FAR Case 2006-014 implements set-asides for local businesses in areas affected by a major disaster or emergency.

A final rule in FAR Case 2005-018 revises procedures for determining and collecting debts owed to the government by contractors.

A final rule in FAR Case 2008-001 changes the name of the Defense Department’s Office of Small and Disadvantaged Business Utilization to the Office of Small Business Programs.


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