Blog Article

No Price, No Problem for New Multiple-Award IDIQ Contracts

Written by: Steven Simpson

No Price, No Problem for New Multiple-Award IDIQ Contracts icon

For decades, a standard requirement in the federal contracting process has been that price must be an evaluation factor in award decisions. That requirement is no longer true for certain contracts issued by the Department of Defense (DoD), National Aeronautics and Space Administration (NASA), and Coast Guard.

Section 825 of the Fiscal Year 2017 National Defense Authorization Act (Pub. L. 114-328) permits contracting officers from these agencies to omit price or cost as an evaluation factor in solicitations for multiple-award indefinite-delivery/indefinite-quantity (IDIQ) contracts.

Although the statute was enacted in December 2016, it was not incorporated into the Federal Acquisition Regulation (FAR) until August 3, 2020. The regulatory rule implementing the act permits DoD, NASA, and Coast Guard contracting officers to omit price or cost as an evaluation factor for the award of multiple-award IDIQ contracts provided that the resultant contracts will:

  1. Have an estimated value above the simplified acquisition threshold (SAT);
  2. Be for the same or similar services; and
  3. Issued to all qualifying offerors.

If a contracting officer chooses not to include price or cost as an evaluation factor in the contract award process, then the contracting officer must consider price or cost as one of the factors in the selection decision for each order placed under the contract.

It should be noted that this new authority does not apply to certain small business multiple-award contracts issued by these agencies. Price or cost must still be evaluated for multiple-award IDIQ contracts that allow sole-source orders pursuant to section 8(a) of the Small Business Act (15 USC 637(a)).

This new rule saves time and money for industry and the Government. Prior to this regulatory change, DoD, NASA, and Coast Guard contracting officers were required to evaluate price or cost as a factor in the selection decision for the award of the multiple-award contracts and each order placed against them. When applied to applicable multiple-award solicitations, the new rule alleviates offerors’ need to gather and analyze internal cost or pricing information or propose a price or cost for each line item in the solicitation. Subsequently, contracting officers do not need to review, analyze, and determine in writing that the proposed costs and prices are fair and reasonable for the award of the multiple-award contracts. Instead, DoD, NASA, and Coast Guard contracting officers may now require that cost or pricing information be submitted only at the order level.

Presently this new authority has only been implemented in the FAR for DoD, NASA, and the Coast Guard. However, the General Services Administration (GSA) issued an Advanced Notice of Proposed Rulemaking (ANPR) on August 19, 2020, to announce its intent to permit the same practice for the Federal Supply Schedule Program and other GSA-issued IDIQ contracts. Authorization for the regulatory change is provided by Section 876 of the Fiscal Year 2019 National Defense Authorization Act (Pub. L. 115-232). GSA has yet to propose details on its regulatory implementation of the new authority. Rather, it issued the ANPR to encourage interested parties to submit comments on how this should be accomplished. Feedback can be provided no later than September 18, 2020, through the Federal eRulemaking portal at www.regulations.gov. Submissions should be directed to GSAR Case 2020-G502.

Related Resources

See All
Blog Article

NCMA World Congress 2024: Celebrating Silver and Going for the Gold

Management Concepts was proud to be a bronze sponsor of the National Contract Management Association’s (NCMA’s) signature annual event, World Congress. Over 3,000 attendees gathered together in Seattle, Washington, with an additional 1,500 joining virtually during…

Read More
Blog Article

NCMA Nexus: Tying It All Together

The National Contract Management Association (NCMA) held its inaugural Nexus event in Jacksonville, Florida, on March 3–6, 2024. Nexus drew hundreds of attendees both on-site and online, getting this new venture off to an energetic start. The concept…

Read More
Video

Acquisition & Contracting Training for Every Government Professional

Discover how our acquisition and contracting training helps federal professionals advance their career.

Watch
Blog Article

Supply Chain Management Best Practices In The Federal Acquisition Context

Supply chain management in the federal acquisition context involves various key procedures to ensure smooth internal and external operations. Steps like planning, sourcing, procurement, logistics, and management of goods and services play a crucial role in supply chain management. Carrying out these…

Read More
Blog Article

How Federal AC Contractors Can Effectively Use Small Businesses for Their Needs

For federal acquisition (AC) contractors, the challenges of small business procurement, seen as an innovation, efficiency, and community impact catalyst, can create a synergy beyond the usual vendor-client relationship. The result is an ecosystem that flourishes with agility, fresh viewpoints,…

Read More
Video

Career Gateway: Acquisition

Designed for real-world success, Career Gateway: Acquisition program doesn’t just check boxes – it cultivates true competency. Dive deep into seven key elements driving performance outcomes, from technical know-how to critical thinking and leadership skills. Gain expertise in Federal…

Watch
Infographic

Microlearning

Learn more on how Microlearning delivers bite-sized “nuggets of knowledge,” exactly when and where you need them, boosting retention with quick bursts of focused, engaging content.

Download
Webinar

Navigating Uncertainty: Risk Management in Federal Contracting

Empower yourself with the knowledge and tools needed to navigate the complexities of risk management as part of the federal acquisition process.

Watch
Blog Article

A Federal Acquisition Professional’s Introduction to Project Lifecycle Activities

The Federal Acquisition Certification for Program and Project Managers (FAC-P/PM) is a professional certification program designed to enhance the acquisition and project management skills of federal employees involved in planning, acquiring, and managing various projects. The program’s core structure encompasses a…

Read More
Blog Article

The Role of Acquisition in Supply Chain Management

Explore how effective acquisition strategies, from strategic sourcing to vendor relationships, reduce costs, improve quality, and enhance competitive advantage in supply chain management.

Read More

Scroll to view more