The June 26th FAR & Beyond blog highlighted the start of the formal rulemaking for the Revolutionary Federal Acquisition Regulation (FAR) Overhaul (RFO). In doing so, the blog introduced a related opportunity for revolutionary procurement reform: the Revolutionary Multiple Award Schedule (MAS) Overhaul (RMO).
The RMO is an opportunity to build on the RFO by streamlining processes, reducing administrative/procurement burdens for the General Services Administration (GSA) and its industry partners, and expanding access to cutting edge commercial capabilities to meet customer agency mission requirements. The RMO should be a collective effort. GSA can solicit recommendations for MAS reform from stakeholders across the procurement community. Here are some structural reform recommendations for the RMO:
- Review and streamline the MAS solicitation as discussed in the June blog. The solicitation is approximately 600 pages, indicating an overly complex set of requirements and instructions for offerors and contracting officers. This review should include eliminating, to the maximum extent practicable, terms and conditions inconsistent with commercial practices. Moreover, the solicitation includes links to additional documents, instructions, forms, and questionnaires for offerors, contractors, and contracting officers. It is a procurement spiderweb of requirements.
- Implement “evergreen” contracting. As discussed in our April 10 FAR & Beyond blog, an unintended consequence of the RFO effectively reduces MAS contract terms from the original 20 years to 10 years. The RFO authorizes 10-year Blanket Purchase Agreements (BPAs). However, MAS rules require contractors to maintain contract coverage—including option periods—for the full BPA period of performance. As a result, a contractor with nine years remaining on its current contract cannot compete for a 10-year BPA without first obtaining a new 20-year contract. This limits competition, reduces access to best-value solutions, and increases bid and proposal costs for GSA and industry. There is a simple, common-sense fix. GSA can issue an optional modification to the MAS contracts incorporating two additional five-year options. Contractors can choose whether to sign or not. This would solve the immediate competitive harm while providing GSA with time to develop and issue a comprehensive solution through the ongoing General Services Acquisition Regulation (GSAR) rewrite. There is no magic to the 20-year contract limitation. It was a purely discretionary policy decision made at the close of the last century. Finally, as each contract is awarded independently, there is no prejudice against any party.
- Implement Section 876, Increasing Competition at the Task Order Level, of the 2019 National Defense Authorization Act. See the December 4, 2020, FAR & Beyond blog. Section 876 promotes competition at the task order level by eliminating the duplicative, formulaic, and burdensome administrative activities of negotiating contract level pricing for services. Under Section 876, pricing and value is determined at the competitive task order level, where customer agency requirements meet best value solutions proposed by MAS contractors. Section 876 remains a commonsense, efficient and effective approach to professional services under the MAS program and any other multiple award indefinite delivery indefinite quantity services contract vehicle. It is never too late to embrace common sense procurement measures!
- Finalize the new GSAR ordering procedures for the MAS program. The new ordering procedures provide clear, concise, and understandable guidance for the award and issuance of task and delivery orders. Significantly, the new GSAR eliminates duplicative language from the old FAR version that is in the standard terms and conditions of each MAS contract. The rewrite recognizes that there is no need to repeat what is already in the contract. The GSAR also provides clear guidance and flexibility for the inclusion of order level materials in tasks orders. Finally, the new GSAR takes the shackles off BPAs, providing greater flexibility in the use of single award BPAs and allowing longer terms than the old, FAR-based five-year limitation. The new procedures provide an efficient, effective process for the competition and issuance of best value task and delivery orders.
These structural reforms are revolutionary. They promote competition, increase access to the commercial market, and deliver best value for customer agencies and the American people.
Finally, GSA’s best value legislative proposal for the MAS is a game changer. As GSA explains on its website, “This proposal would update the standard for the General Services Administration’s Multiple Award Schedule program to seek out the best value for the Government, rather than the ‘lowest overall cost alternative,’ which may not account for administration costs, product quality, delivery time and other factors.” The best value language will provide a 21st Century management framework for the MAS program, providing both flexibility and accountability to ensure the MAS program delivers for the American people. It is a pro innovation, pro taxpayer, pro commercial item, and pro competition provision.