Proposed rule would clarify multiple-award contracts

Federal contracting officers would be required to give all vendors a fair opportunity to compete in governmentwide contracts under proposed changes to the Federal Acquisition Regulation (FAR) published Wednesday in the Federal Register.

Governmentwide contracts have been criticized for allowing contracting officers to identify preferred sources, rather than giving all vendors a fair chance to compete. But the 2000 Defense Authorization Act, enacted Oct. 5, requires that the FAR be revised to prevent inappropriate use of such contracts.

Wednesday's proposed changes to FAR rules clarify when contracting officers should consider using multiple-award contracts such as a governmentwide acquisition contracts (GWACs). With a GWAC, an agency negotiates a deal with a number of vendors for a set of products or services and then lets other agencies use the contract for a fee. Such arrangements help speed up contracting for agencies.

Under the proposed revisions, contracting officers must give preference to at least two contractors in governmentwide and multiagency contracts.

The revisions also spell out cases when it is not appropriate to use multiple-award contracts, such as when the service that is being contracted out is so specialized that only one contractor can perform it.

Officers must make sure each contractor is given a fair chance to be considered for each order over $2,500. Allocating or designating a preferred awardee would not be allowed under the proposed changes.

Comments on the proposed revisions are due before February 14, 2000 and can be emailed to farcase.1999-0114@gsa.gov.