The costs of contract duplication

As the federal acquisition community implements the Revolutionary Federal Acquisition Regulation (FAR) Overhaul (RFO) and consolidates procurement operations, the challenge of contract duplication remains. Unnecessary contract duplication increases bid and proposal, contract administration and management costs for government and industry. Contract duplication is a stealth tax on the procurement system, impacting customer agencies and contractors alike. It reduces efficiency, leads to higher prices, and reduces access to the federal market. Contract duplication creates barriers to entry for all firms, whether they are new entrants, current contractors, small businesses or large businesses.

The Army’s Marketplace for Acquisition of Professional Services (MAPS) procurement is a case study on contract duplication. As outlined in our Feb. 21 blog, MAPS duplicates a host of governmentwide contracting vehicles, including, but not limited to, the Federal Supply Schedule (FSS) program, Polaris, OASIS+ and Alliant. NASA will soon award its SEWP VI contract vehicle, which also includes professional services. The MAPS procurement, which has been in the planning stages for almost two years, remains months, if not years, away from announcement of contract awards. Of course, the announcement of MAPS contract awards does not mean the end of the process or an elimination of further costs. The bid protest period must close, and any protests, if filed, must first be resolved, which could include revised offers and/or reevaluation. Only when all the protests have been resolved and the contract awards finalized will the “real” competition to perform specific Army requirements begin.

Time is money. For large firms, MAPS is costing each of them hundreds of thousands of dollars in bid and proposal costs. Cumulatively, the MAPS procurement is costing small and large businesses millions of dollars in bid and proposal costs. Significantly, these costs do not include subsequent costs associated with the contract administration functions and resulting infrastructure necessary to manage the task order process. For small businesses in particular, these costs can be even more impactful given more limited resources. From the government’s perspective, developing, competing and administering new contract vehicles requires time and resources that could be directed toward meeting mission requirements through existing contracts. It is a question of productivity and efficiency.

Right now, the Army can immediately utilize the FSS, Polaris, Alliant and OASIS+, among others, to meet current, existing needs covered by MAPS. Such an approach would save time and money, while availing the Army of a robust, competitive contractor base of both small and large business firms. This approach is consistent with the president’s executive order (EO) 14240, “Eliminating Waste and Saving Taxpayer Dollars by Consolidating Procurement,” which emphasizes reducing overlap and streamlining acquisition. The administration is quite right to focus on leveraging procurement capabilities and taking advantage of shared services to reduce costs, improve efficiency, and deliver more timely best value solutions, services and products for the American people.

Consistent with these priorities, The Coalition for Common Sense in Government Procurement (Coalition) continues to emphasize that leveraging existing contract vehicles, where appropriate, reduces administrative burden, streamlines acquisition timelines, and enhances competition. To support this effort, we will be launching a new Contract Duplication Survey, in conjunction with the Coalition’s May 13 and 14 Spring Training Conference, The Revolutionary Federal Market Continued. The survey is designed to gather current data from members on the costs and impacts associated with participating in multiple, overlapping contract vehicles. This includes insights into bid and proposal investments, contract management costs and resource implications.

We encourage members to participate and share their perspectives. The results of the survey will be summarized and shared with stakeholders across the procurement community. The goal is to enhance discussions and decision making towards our common goal of reducing unnecessary duplication, improving efficiency, and ensuring the federal acquisition system delivers best value for customer agencies and the American people.

Roger Waldron is president of The Coalition for Common Sense in Government Procurement.

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