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Senate Votes For Competition in Contracting

The Senate has approved legislation aimed at promoting competition in contracting, especially on task orders under GSA schedules and other multiple award contracts.

The Accountability in Government Contracting Act, S. 680, would extend the Defense Department’s Section 803 rule to all civilian agencies, requiring contracting officers to attempt to get at least three bids on task orders over $100,000. The Senate passed the bill without debate on a unanimous voice vote Nov. 8.

It also requires contracting officers to draft a statement of work for any task order over $5 million; entitles bidders on those orders to a post-award debriefing; and permits protests on orders above the $5 million threshold.

“Federal agencies are awarding too many no-bid contracts,” said Sen. Susan Collins, R-ME. “This bill will strengthen competition in federal contracting.” She co-sponsored the bill with Sen. Joseph Lieberman, I-CT, chairman of the Homeland Security and Governmental Affairs Committee.

Industry groups have generally endorsed the competition requirements, but said allowing protests on task and delivery orders would slow procurement and be costly for contractors.

The Office of Federal Procurement Policy says more than half of government procurement dollars are now spent through task and delivery orders on multiple award contracts.

Many of the bill’s provisions were recommended by the Acquisition Advisory Panel, which completed an 18-month study of procurement laws, regulations and policies in December.

The House has passed a procurement bill, the Accountability in Contracting Act, H.R. 1362, sponsored by Oversight Committee Chairman Henry Waxman, D-CA. It contains many provisions similar to the Senate bill, but would also require agencies to implement plans to minimize the use of sole-source contracts and “to maximize, to the fullest extent practicable, the use of fixed-price type contracts.” (SAA, 3/23)

A joint Senate-House conference committee will write the final version of the legislation. Prospects for passage are uncertain with only a few weeks remaining in this year’s congressional session.

Other provisions of the Senate bill:

Agencies would be required to publish prompt notice of sole-source orders above the simplified acquisition threshold, $100,000, along with the justification for sole-sourcing.

“Undefinitized contracts,” usually awarded in emergencies, would have to have all the blanks filled in within 180 days.

Sole-source contracts awarded because of urgent and compelling need, such as after a natural disaster, must be competed within 270 days. Industry groups urged Congress not to set a firm deadline.

Several provisions are aimed at strengthening the federal acquisition workforce by setting up a governmentwide internship program and making contracting jobs more attractive to employees.

Many contracting jobs were eliminated during the acquisition reforms of the 1990s. A large number will soon be eligible to retire.


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