Competition for task orders begins only after the umbrella contract is in place. After that, contract awardees are entitled only to minimum quantities specified in their contract and a CO may select awardees for task orders using "streamlined" procedures.

Task Order Statement of Work. Unlike the umbrella contract, TO SOWs must be fairly detailed, all orders must be within the scope of the umbrella contract (again, this is the only grounds to protest a specific TO) and orders must include, at least, descriptions of services or supplies, quantity and unit or estimated price.

Streamlined Selection Process. COs have broad discretion in determining the process for selecting recipients for individual TOs and the FAR encourages "streamlined" approaches. The procedures and selection criteria must be identified in the umbrella contract. "Full and open competition" is not required but rather a "fair opportunity to be considered" for each order over $2,500 unless a sole source award is justified. Essentially, the CO can contact two or more contractors and ask them to compete.

The FAR directs COs to keep the requirements for submission to a minimum. Though written proposals may be required, the FAR allows and the OFPP encourages oral presentations. For selection criteria, the FAR requires only price or cost to be considered but adds the CO should consider (1) past performance on earlier orders under the contract (e.g. quality, timeliness and cost control) (2) potential impact on other orders placed with the contractor and (3) minimum order requirements. The OFPP recommends past performance be used as an "initial screen" to determine which offerors will be considered.

In practice, competition is often no more than a formality. Umbrella contract awardees are not required to be notified of an order opportunity. Many may be eliminated from further consideration (i.e. competitive range) because they did not pass the "initial screen". Under GWACs, ordinary agencies may state a preference for a contractor and request they receive a solicitation for an order.

Sole Source Orders. Compared to strict impediments to sole sourcing under normal contracting (e.g. approval by head of contracting agency, protests by other), an agency has significant discretion to award TOs on a sole source basis. Though the FAR directs COs to avoid situations where awardees specialize in only one or a few areas to avoid likelihood of sole-source awards, sole source awards over $2,500 are allowed when (1) the agency’s needs are urgent (2) only one awardee is capable of providing the quantity of service because it is unique or highly specialized (3) a follow on contract is justified for reasons of economy and efficiency as long as the original TO was fairly competed and (4) a minimum quantity must be met.

Pricing Orders. The FAR specifies that TO contracts can provide for a wide range cost or pricing arrangements including cost-reimbursement, time and material, labor hour/level of effort and fixed price. If the task can be specified in sufficient detail to permit reasonable estimates and fair price competition, fixed prices should be used; if not, then other pricing methods may be used. When the umbrella contract does not establish an overall price, the CO is to establish prices for individual TOs using methods established in FAR 15.4 for pricing negotiated contracts.

Contractors’ Obligation to Compete. Depending on terms of the umbrella contract, contractors are obligated to submit a good faith proposal if the agency requests one. Otherwise, the agency may simply issue the order at a price found to be reasonable. The OFPP encourages agencies to minimize the requirement for contractors to submit bids to provide them the flexibility to determine when to prepare bids.

Use of Blanket Purchase Agreements (BPAs). Further circumstances to lessen competition even more is use of BPAs. The FAR defines a BPA as a means of filling anticipated repetitive needs for supplies and services by establishing a "charge account" with qualified sources. BPAs are an acceptable contracting method under the FAR 15 simplified acquisition procedures for purchases under $100,000. The FAR and most recently the General Accounting Office allows agencies to establish BLAs with Federal Supply Schedule (FSS) suppliers where the FSS program gives established ID/IQ contracts with commercial firms to allow agencies to buy supplies and services at stated prices and time periods.

Duration of Contract. Whereas ordinary contracts contain specific dates by which the work must be completed, TO contracts specify a "period of performance" where orders may be placed but not a term of performance under the orders. The only time limit applies to advisory and assistance services where a 5 year time limit applies to placing orders (though not for performance of those orders).

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