Competition Requirements for Purchase of Services Under Multiple Award Contracts Section 803.
-
Upload
rachel-bel -
Category
Documents
-
view
219 -
download
5
Transcript of Competition Requirements for Purchase of Services Under Multiple Award Contracts Section 803.
![Page 1: Competition Requirements for Purchase of Services Under Multiple Award Contracts Section 803.](https://reader036.fdocuments.us/reader036/viewer/2022062619/55163409550346b2068b4de9/html5/thumbnails/1.jpg)
Competition Requirements for Competition Requirements for Purchase of Services Under Purchase of Services Under
Multiple Award ContractsMultiple Award Contracts
Section 803Section 803
![Page 2: Competition Requirements for Purchase of Services Under Multiple Award Contracts Section 803.](https://reader036.fdocuments.us/reader036/viewer/2022062619/55163409550346b2068b4de9/html5/thumbnails/2.jpg)
FPDS Data FPDS Data All Actions over $25,000All Actions over $25,000
$0
$50
$100
$150
$200
Billions
FY 00 FY 01 FY 02 FY 03
Supplies Services
![Page 3: Competition Requirements for Purchase of Services Under Multiple Award Contracts Section 803.](https://reader036.fdocuments.us/reader036/viewer/2022062619/55163409550346b2068b4de9/html5/thumbnails/3.jpg)
DoD Purchases for Services DoD Purchases for Services over $100,000 under over $100,000 under
Multiple Award ContractsMultiple Award Contracts
$0$2$4$6$8
$10$12$14
Billions
![Page 4: Competition Requirements for Purchase of Services Under Multiple Award Contracts Section 803.](https://reader036.fdocuments.us/reader036/viewer/2022062619/55163409550346b2068b4de9/html5/thumbnails/4.jpg)
The BeginningThe Beginning
October, 1994 – Federal Acquisition Streamlining Act (FASA)
Task/delivery orders using multiple award instruments;
Multiple award contractors be given “Fair Opportunity” to compete for task orders; and
Only 5 exceptions to “Fair Opportunity”.
![Page 5: Competition Requirements for Purchase of Services Under Multiple Award Contracts Section 803.](https://reader036.fdocuments.us/reader036/viewer/2022062619/55163409550346b2068b4de9/html5/thumbnails/5.jpg)
Fair Opportunity ExceptionsFair Opportunity Exceptions
Urgency FAR 16.505(b)(2) Unique Source FAR 16.505(b)
(2) Follow-on Order FAR
16.505(b)(2) Minimum Guarantee FAR
16.505(b)(2) Authorized by Statute
![Page 6: Competition Requirements for Purchase of Services Under Multiple Award Contracts Section 803.](https://reader036.fdocuments.us/reader036/viewer/2022062619/55163409550346b2068b4de9/html5/thumbnails/6.jpg)
GAO Finding / DFARS GAO Finding / DFARS ChangesChanges September, 1998 – GAO found that
short cuts were taken with regards to competition on task & deliver orders.
March, 1999 – DFARS revised to remind contracting personnel that all purchases over $2,500 made for DoD by another agency are subject to the Economy Act, unless the agency is identified by statute as an agent for the rest of the Government.
![Page 7: Competition Requirements for Purchase of Services Under Multiple Award Contracts Section 803.](https://reader036.fdocuments.us/reader036/viewer/2022062619/55163409550346b2068b4de9/html5/thumbnails/7.jpg)
DoDIG FindingsDoDIG Findings
April, 1999 – DoDIG Report found 78% of delivery orders for
products were awarded competitively to the low bidder; BUT
task orders for services were NOT awarded consistent with statutory requirements.
![Page 8: Competition Requirements for Purchase of Services Under Multiple Award Contracts Section 803.](https://reader036.fdocuments.us/reader036/viewer/2022062619/55163409550346b2068b4de9/html5/thumbnails/8.jpg)
DoD Policy LetterDoD Policy Letter April, 1999 – Director of
Defense Procurement Letter addressed: When to use Multiple Award
Contracts; When the follow-on exception can
be used; That price must be a
consideration; and Documentation & reporting
requirements.
![Page 9: Competition Requirements for Purchase of Services Under Multiple Award Contracts Section 803.](https://reader036.fdocuments.us/reader036/viewer/2022062619/55163409550346b2068b4de9/html5/thumbnails/9.jpg)
DoD Contract ReviewDoD Contract Review
June 1999 – Director of Defense Procurement Letter - Each military department selected 10 Multiple Award Contracts for services for further review.
The competition rate was worse that first projected
![Page 10: Competition Requirements for Purchase of Services Under Multiple Award Contracts Section 803.](https://reader036.fdocuments.us/reader036/viewer/2022062619/55163409550346b2068b4de9/html5/thumbnails/10.jpg)
New Procurement Reporting New Procurement Reporting RequirementRequirement
July, 1999 – Director of Defense Procurement Letter – revised the DD350 report to collect “Fair Opportunity” information.
![Page 11: Competition Requirements for Purchase of Services Under Multiple Award Contracts Section 803.](https://reader036.fdocuments.us/reader036/viewer/2022062619/55163409550346b2068b4de9/html5/thumbnails/11.jpg)
FY 2000 NDAAFY 2000 NDAA
October, 1999 – addressed the misuse & abuse of Task Order contracts, by establishing better control of orders placed under multiple award contract instruments.
![Page 12: Competition Requirements for Purchase of Services Under Multiple Award Contracts Section 803.](https://reader036.fdocuments.us/reader036/viewer/2022062619/55163409550346b2068b4de9/html5/thumbnails/12.jpg)
DoDIG FindingsDoDIG Findings
March, 2000 – DoDIG Report - Contracts for Professional, Administrative, & Management Support Services inadequate competition: and failure to properly award orders
under multiple-award contracts.
![Page 13: Competition Requirements for Purchase of Services Under Multiple Award Contracts Section 803.](https://reader036.fdocuments.us/reader036/viewer/2022062619/55163409550346b2068b4de9/html5/thumbnails/13.jpg)
GAO FindingsGAO Findings
March, 2000 – GAO Report Findings many large orders awarded
without competing proposals; agencies inappropriately used
statutory exceptions to the “fair opportunity” requirement;
![Page 14: Competition Requirements for Purchase of Services Under Multiple Award Contracts Section 803.](https://reader036.fdocuments.us/reader036/viewer/2022062619/55163409550346b2068b4de9/html5/thumbnails/14.jpg)
FAR ChangesFAR Changes April, 2000 – FAC 97-17 included:
how to plan for, compete, and administer multiple award task or delivery order contracts;
what must consider when deciding if a multiple award contract is appropriate;
key considerations when placing orders;
![Page 15: Competition Requirements for Purchase of Services Under Multiple Award Contracts Section 803.](https://reader036.fdocuments.us/reader036/viewer/2022062619/55163409550346b2068b4de9/html5/thumbnails/15.jpg)
FAR ChangesFAR Changesall awardees be given a fair
opportunity to compete on every multiple-award task/deliery order unless a specific exception applies;
decision to use multiple award contract be documented in the acquisition plan or contract file;
use of performance based statements of work;
![Page 16: Competition Requirements for Purchase of Services Under Multiple Award Contracts Section 803.](https://reader036.fdocuments.us/reader036/viewer/2022062619/55163409550346b2068b4de9/html5/thumbnails/16.jpg)
FAR ChangesFAR Changes guidance on how to develop
tailored order placement procedures;
cost or price be considered as evaluation factor;
prices for each order be established using the policies and methods in Subpart 15.4; and
document rationale for order placement.
![Page 17: Competition Requirements for Purchase of Services Under Multiple Award Contracts Section 803.](https://reader036.fdocuments.us/reader036/viewer/2022062619/55163409550346b2068b4de9/html5/thumbnails/17.jpg)
DoDIG FindingsDoDIG Findings
September, 2001 – Multiple Award Contracts for Services less than 26% of task orders were
competed; only 69% of those received more
than 1 response. contracting officer discretion cited
as the reason they did not compete the orders (NOTE-- this is NOT a legitimate exception)
![Page 18: Competition Requirements for Purchase of Services Under Multiple Award Contracts Section 803.](https://reader036.fdocuments.us/reader036/viewer/2022062619/55163409550346b2068b4de9/html5/thumbnails/18.jpg)
Section 803 – Competition Section 803 – Competition Requirements for Purchase of Requirements for Purchase of Services Under Multiple Award Services Under Multiple Award ContractsContracts
December, 2001 – FY 02 NDAA required DoD to issue DFARS policy requiring competition in the purchase of services over $100,000 under multiple award contracts.
![Page 19: Competition Requirements for Purchase of Services Under Multiple Award Contracts Section 803.](https://reader036.fdocuments.us/reader036/viewer/2022062619/55163409550346b2068b4de9/html5/thumbnails/19.jpg)
FSS OrdersFSS Orders
Issue the notice to as many schedule holders as practicable to reasonably ensure that proposals will be received from at least 3 sources that offer the required work; OR
Contact all schedule holders that offer the required work by informing them of the opportunity for award
![Page 20: Competition Requirements for Purchase of Services Under Multiple Award Contracts Section 803.](https://reader036.fdocuments.us/reader036/viewer/2022062619/55163409550346b2068b4de9/html5/thumbnails/20.jpg)
Non-FSS OrdersNon-FSS Orders
All awardees that offer the required work must be given the opportunity to submit a proposal.
The CO must consider all proposals submitted.
![Page 21: Competition Requirements for Purchase of Services Under Multiple Award Contracts Section 803.](https://reader036.fdocuments.us/reader036/viewer/2022062619/55163409550346b2068b4de9/html5/thumbnails/21.jpg)
FAR ChangesFAR Changes
September, 2002 – FAC 2001-09 included: definitions for GWAC and MAC; acquisition planning for task and
delivery orders; funding limitations apply; work with contractors to ensure
“fair opportunity”; and Economy Act does not apply to
FSS contracts.
![Page 22: Competition Requirements for Purchase of Services Under Multiple Award Contracts Section 803.](https://reader036.fdocuments.us/reader036/viewer/2022062619/55163409550346b2068b4de9/html5/thumbnails/22.jpg)
DFARS ChangesDFARS Changes
October, 2002 – DFARS Change Notice 20021025 made changes to: Subpart 208.4 – Federal Supply
Schedules; and Subpart 216.5 – Indefinite Delivery
Contacts.
![Page 23: Competition Requirements for Purchase of Services Under Multiple Award Contracts Section 803.](https://reader036.fdocuments.us/reader036/viewer/2022062619/55163409550346b2068b4de9/html5/thumbnails/23.jpg)
FSS SurveyFSS Survey August, 2003 – Multiple Award
Schedule Users’ Survey found: 33% of DoD respondents were
familiar with Section 803 requirements;
7.5% of all respondents contacted less than 3 FSS holders;
27% of all respondents obtained less than 3 quotes; and
reason most cited was lack of reasonable quotes
![Page 24: Competition Requirements for Purchase of Services Under Multiple Award Contracts Section 803.](https://reader036.fdocuments.us/reader036/viewer/2022062619/55163409550346b2068b4de9/html5/thumbnails/24.jpg)
FAR ChangesFAR Changes July, 2004 - FAC 2001-24 included the
following changes for FSS orders: Required approval for sole source
orders; Required order offices to follow
regulations and laws applicable to requiring activity;
Required the basis for award on best value awards be explained to unsuccessful offerors;
Refined guidance for using Government-wide BPAs,
![Page 25: Competition Requirements for Purchase of Services Under Multiple Award Contracts Section 803.](https://reader036.fdocuments.us/reader036/viewer/2022062619/55163409550346b2068b4de9/html5/thumbnails/25.jpg)
FAC 2001-24, con’tFAC 2001-24, con’t
Allowed consideration of socio-economic status when identifying competitors;
Reinforced documentation requirements;
Encouraged seeking price reductions on any order;
Allowed credit card payments; Clarified termination procedures; and Clarified that competition shall not be
sought outside the FSS.
![Page 26: Competition Requirements for Purchase of Services Under Multiple Award Contracts Section 803.](https://reader036.fdocuments.us/reader036/viewer/2022062619/55163409550346b2068b4de9/html5/thumbnails/26.jpg)
GAO ReportGAO Report
July, 2004 – Recommended DoD: Develop additional guidance on
when logical follow-on and unique services waiver may be used;
Require waiver determinations be supported & documented; and
Establish approval levels for waivers.
![Page 27: Competition Requirements for Purchase of Services Under Multiple Award Contracts Section 803.](https://reader036.fdocuments.us/reader036/viewer/2022062619/55163409550346b2068b4de9/html5/thumbnails/27.jpg)
Available TrainingAvailable Training
November, 2002 – DAU Continuous November, 2002 – DAU Continuous Learning Module, Learning Module, http://clc.dau.mil/kc/no_login/portal.ahttp://clc.dau.mil/kc/no_login/portal.aspsp
March, 2003 – DoD training videoMarch, 2003 – DoD training video May, 2003 – FSS Customer Training May, 2003 – FSS Customer Training
Course, Course, https://fsstraining.gsa.gov/kc/Securelhttps://fsstraining.gsa.gov/kc/Securelogin/login.asp?kc_ident=kc0001ogin/login.asp?kc_ident=kc0001
![Page 28: Competition Requirements for Purchase of Services Under Multiple Award Contracts Section 803.](https://reader036.fdocuments.us/reader036/viewer/2022062619/55163409550346b2068b4de9/html5/thumbnails/28.jpg)
ReferencesReferences
NDAA - NDAA - http://thomas.loc.gov/http://thomas.loc.gov/ GAO Reports GAO Reports
http://www.gpoaccess.gov/gaoreporhttp://www.gpoaccess.gov/gaoreports/index.htmlts/index.html
DoDIG - DoDIG - http://www.dodig.osd.mil/audit/reporhttp://www.dodig.osd.mil/audit/reports/index.htmlts/index.html
DPAP Letters - DPAP Letters - http://www.acq.osd.mil/dpap/policy/http://www.acq.osd.mil/dpap/policy/policydocs.htmpolicydocs.htm
DAR Council - DAR Council - http://http://www.acq.osd.mil/dpap/dfars/index.hwww.acq.osd.mil/dpap/dfars/index.htmtm
![Page 29: Competition Requirements for Purchase of Services Under Multiple Award Contracts Section 803.](https://reader036.fdocuments.us/reader036/viewer/2022062619/55163409550346b2068b4de9/html5/thumbnails/29.jpg)
Presented byPresented by
Debbie BartlettDebbie Bartlett
Contracting Program DirectorContracting Program Director
Defense Acquisition UniversityDefense Acquisition University
[email protected]@dau.mil