the government's projected estimated costs. DOJ attributes these savings to the fact that awardees were competing
with one another for each task order. The Air Force's dual award multi-billion dollar contract for microcomputers
(known as Desktop V) allows ordering agencies within and outside the Department of Defense (DOD) to obtain more
efficiently new technology at the most competitive prices. The National Aeronautics and Space Administration's
(NASA's) Personal Computer Acquisition Contract (PCAC) required quarterly price resubmission which encouraged
cost competition and technological refreshment.
Many agencies are now successfully using the new FASA multiple award authority for major IT contracts. The
Department of Transportation (DOT), under its Information Technology Omnibus Program (ITOP) contract, DOJ,
under its Information Technology Support Services Contract, and the National Institutes of Health (NIH), under its
Chief Information Officer Solutions and Partners (CIO-SP) program contract, recently awarded multiple award
contracts for IT support services. GSA, through its Federal Systems Integration and Management Support Center,
has awarded multiple award contracts for IT services using the new FASA guidelines.
Many of the major multiple award IT contracts are satisfying not just the needs of the agency awarding the contract,
but of other agencies as well. Interagency usage can serve to reduce the overhead associated with multiple
acquisitions. In addition, aggregation of demand (especially for supplies) can help the government to exercise buying
leverage and encourage vendors to offer the best possible prices.
Under the Clinger-Cohen Act (formerly referred to in part as the Information Technology Management Reform Act),
which became effective on August 8, 1996, an agency head may establish a multi-agency contract for IT in
accordance with guidance issued by the Office of Management and Budget (OMB) (see 40 U.S.C. 1424(a)(2)). Prior
to this time, an agency's ability to contract for IT was subject to approval by GSA pursuant to the Brooks Act. OMB
guidance, set forth in OMB Memorandum M-97-07, dated February 26, 1997, states that multi-agency contracts must
be consistent with the Economy Act. Guidance on the Economy Act can be found at FAR Subpart 17.5.
The OMB guidance states that the benefits of a multi-agency contract can be realized only if there is a management
commitment commensurate with the potential size of the contracts. Agency heads must:
z
ensure that their Chief Information Officers and Senior Procurement Executives work together to assign
responsibilities and establish clear lines of accountability;
z
ensure that the agency component conducting the acquisition has established effective contract management
systems and has an adequately trained and sized staff available to administer the resulting contracts;
z
monitor the progress of the contracts and ensure that adequate management resources continue to be
devoted, particularly if the contracts prove to be unexpectedly popular or otherwise begin to strain existing
management resources;
z
ensure agency compliance with FAR 16.504(a) by setting an initial dollar or quantity limit on such contracts;
and
z
consider placing an initial limit on the amount of interagency usage, subject to periodic adjustment (either
upward or downward) depending on the agency components demonstrated ability to adequately manage the
contracts in light of the volume of orders received.
In addition to allowing agencies to establish multi-agency contracts, the Clinger-Cohen Act authorizes OMB to
designate one or more agency heads as executive agents for government-wide acquisitions of IT. Pursuant to this
authority (set forth at 40 U.S.C. 1412(e)), OMB designated GSA as an executive agent for, among other things, the
Federal Systems Integration and Management (FEDSIM) and Federal Computer Acquisition Center (FEDCAC)
programs.
Use of Multiple Award Contracts to Buy Other Services
The use of multiple award contracting has proven effective in acquiring other types of services and supplies. For
example, DOT has experienced similar success using multiple award contracts at its Volpe Center. These contracts,
known as the Multiple Contractor Resource Base (MCRB) program, enhance the Center's technology resources and
capabilities, increase private sector competition, and broaden industry participation in support of its research and
development program. The MCRB program encompasses four functional areas: operations research and analysis;
information systems engineering; communications, navigation, and surveillance systems; and vehicle, guideway, and
terminal systems. Twenty-nine contractors, seven of which are small businesses, compete for task orders under the
contracts. Full participation of management, procurement, and technical program specialists ensure quality
performance consistent with program objectives and responsiveness to customer requirements.
The Department of Health and Human Services (HHS) is using multiple award contracts for audit support services
(including financial, program, or contract audits) in their Inspector General's office at headquarters and throughout
their regional offices. Previously, these services were acquired under regional requirements contracts and work was
each contractor In August 1995 HHS awarded 14 ID/IQ contracts for
nationwide audit services which
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