DOD Issues Final Rules on Competition Under MACs and Expanding Commercial Item Treatment
The Defense Department October 25 issued a final rule, requiring competition when placing orders for services costing more than $100,000 under DOD multiple award contracts (MACs). MACs include multiple award schedules (MAS) programs operated by the General Services Administration as well as multiple award indefinite quantity task and delivery order contracts.
When placing an order for services costing more than $100,000 under MACs contracting officers must now contact as many MAC awardees or FSS schedule holders capable of doing the work as practicable, ensuring at least three responses are received or, alternatively, must contact all schedule holders. If a CO does not receive three responses, a written determination must be submitted saying no additional qualified contractors were identified despite “reasonable” efforts to do so.
The CO must:
Provide a fair notice of intent to make a purchase including a description of work and basis for selection Afford all contractors responding to the notice a fair opportunity to submit an offer and have it fairly considered Keep contractor submission requirements to a minimum Allow the use of streamlined procedures, including oral presentations Consider price or cost under each order as one of the factors of selection Consider past performance on earlier orders under the contract including quality, timeliness and cost control.
The new competition rules govern all orders on or after October 2002 regardless of when the MAC was awarded. In addition, it covers all DOD requirements for services, whether placed by DOD directly or placed on its behalf (Fed. Reg. 65,505).
DOD also issued a final rule on October 25 that would mandate the treatment of performance-based service contracts and task orders as contract for the procurement of commercial items under certain conditions. Those conditions are (1) it is a fixed price contract (2) has a value of $5 million or less (3) specifies each task to be performed (4) defines each task in measurable, mission-related terms (5) identifies the specific end products or outputs to be achieved and (6) is awarded to a contractor that provides similar services at the same time to the general public under similar terms and conditions as the contract or task order (Fed. Reg. 65,528).
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