Two weeks ago, the FAR & Beyond blog highlighted the new Federal Supply Schedule (FSS) ordering procedures set forth in the General Services Acquisition Regulation (GSAR). See GSAR Part 538.71. The slim downed, plain language rewrite of the FSS ordering procedures under the Revolutionary FAR Overhaul (RFO) marks a significant, powerful improvement in the competitive ordering process. Moving the FSS ordering procedures to the GSAR provides the General Services Administration (GSA) with the ability to rapidly and effectively update the procedures to meet changing market conditions and capabilities. The new ordering procedures, however, are not the only major change to Federal Acquisition Regulation (FAR) Part 8. FAR 8.104, Use of Existing Contracts, establishes a new category of “required use” contracts. FAR 8.104 directs that when a commercial product or service that meets an agency’s needs is available on an existing governmentwide contract or Blanket Purchase Agreement (BPA), the agency:
Must use the existing government-wide contract or blanket purchase agreement to buy the supply or service if the contract has been designated by the Office of Federal Procurement Policy a “required use” contract, unless the head of the contracting activity provides an exception (e.g., because the contract’s terms and conditions, scope, or performance period do not meet the agency’s needs); and
Should consider use of other existing government-wide contracts or blanket purchase agreements if there is not a suitable “required use” contract to meet the agency’s needs.
This language is in an August 29th update to the original FAR 8.104 revision that was issued on August 14th. The August 14th version of FAR 8.104 essentially provided for the required use of best-in-class contracts. It is significant that the August 29th update eliminated any reference to best-in-class contracts as so-called required use contracts.
The updated guidance is more consistent with the current management approach to the consolidation of procurement functions across government. The new FAR 8.104 creates a “plain language” regulatory framework that will prioritize the use of specific governmentwide contract vehicles rather than a host of competing, duplicative, and overlapping suite of best-in-class contracts. For commercial firms, especially small businesses, the best-in-class framework is like playing “Whack a mole” at an amusement park. How do firms choose what best-in-class contracts to compete for? What do firms do if the government comes out with a new best-in-class contract that overlaps with a current agency specific contract the firm has already competed for and won? Is a firm not a best-in-class contractor if it is not on the right “best-in-class” contract vehicle? The Coalition for Common Sense in Government Procurement has heard these frustrating questions and more from companies trying to navigate opportunities in the federal market.
The best-in-class model reflected a highly bureaucratic, cumbersome approach built on specific criteria relating to contract terms and conditions. It has resulted in contract duplication across the portfolio of best-in-class contracts. The best-in-class criteria has always raised questions as to how contract vehicle “quality” was measured. The objective best-in-class criteria do not directly take into consideration actual contract performance results (e.g., did the identified best-in-class contract deliver best value mission support?). In sum, the best-in-class management approach did not significantly impact/reduce the growth of contract vehicles across government.
There is power in simplicity. Using a plan language management approach that identifies required use contract vehicles as outlined in FAR 8.104 will reduce unnecessary contract duplication, leverage government and commercial resources and capabilities, foster greater market discipline in agency acquisition planning, and provide more efficient and effective business opportunities for commercial firms. Clear management directives on the use of these contract vehicles will create greater discipline in the federal market, creating a dynamic that has great potential to deliver more efficient and effective mission support for the American people.
The Revolutionary FAR Overhaul represents a common sense approach to acquisition management, providing an opportunity to move beyond best-in-class.
The post FAR & Beyond: Time to retire the best-in-class regime? first appeared on Federal News Network.