[Federal Register Volume 67, Number 87 (Monday, May 6, 2002)]
[Notices]
[Pages 30403-30404]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-11139]
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OFFICE OF MANAGEMENT AND BUDGET
Competition in Contracting; Contract Bundling
AGENCY: Office of Management and Budget, Executive Office of the
President.
ACTION: Notice of public meeting and request for comments.
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SUMMARY: The Office of Management and Budget (OMB) is reviewing federal
agencies' use of competition in their contracting activities. Although
``full and open'' competition remains the general rule when agencies
acquire goods and services, a variety of legislative, regulatory, and
policy initiatives, implemented primarily over the past decade,
authorize competition on a significantly more restricted and informal
basis. The purpose of this review, which has been called for by the
White House, is to identify steps for ensuring that agency competition
practices facilitate access to the full range of marketplace
capabilities--especially those of small businesses--to consistently
achieve good quality at lower cost to the taxpayer. This review will
occur in conjunction with an initiative to address contract bundling
(i.e., the consolidation of two or more requirements previously
provided or performed under separate smaller contracts into a single
contract that is likely to be unsuitable for award to a small
business).
OMB invites interested parties from both the public and private
sector, and especially from small businesses, to provide comments on:
The positive and negative effects of agency competition practices from
the 1990s to the present, and the impact of contract bundling.
Interested parties may offer oral and/or written comments at a public
meeting to be held on June 14, 2002. Parties may also provide written
comments directly to OMB's Office of Federal Procurement Policy (OFPP)
by the date indicated below.
DATES: Public Meeting: A public meeting will be conducted at the
address shown below on June 14, 2002, from 1 p.m. to 3 p.m. Eastern
standard time. The time period may be extended based on the level of
interest expressed. Parties wishing to make formal oral presentations
at the public meeting must contact Ms. Barbara Diering of OFPP by June
3, 2002. Due to time limitations, OFPP will notify individuals of their
speaking status (time) prior to the meeting. Time allocations for oral
presentations will depend on the number of individuals who desire to
make presentations. Parties wishing to share written statements at the
public meeting must submit such statements to OFPP by June 7, 2002.
Statements: In lieu of, or in addition to, participating in the
public meeting, interested parties may submit comments to OFPP at the
address shown below on or before July 1, 2002.
ADDRESSES: Public Meeting: The public meeting will be held at the
General Services Administration (GSA) auditorium, 18th and F Streets
NW., Washington, DC 20405.
Statements: Interested parties may send comments by electronic mail
(e-mail) to [email protected]. While e-mail is preferred, parties
may alternatively submit comments by facsimile (202) 395-5105. In
either case, please cite ``Competition in contracting review'' as the
subject. Since hard copy mail is not being accepted on a regular basis
(due to security reasons), comments should not be submitted in this
mode. Parties that cannot submit comments using either e-mail or
facsimile should contact Ms. Diering.
FOR FURTHER INFORMATION CONTACT: For clarification of subject matter
related to the review of competition practices: Mr. Mathew Blum, OFPP,
(202) 395-4953.
For clarification of subject matter related to contract bundling
and small business issues: Mr. Michael Gerich, OFPP, (202) 395-6811.
For public meeting information and submission of comments to OFPP:
Ms. Barbara Diering, OFPP, (202) 395-3256.
The TTY number for further information is: 1-800-877-8339.
SUPPLEMENTARY INFORMATION: In 1984, the Competition in Contracting Act
(CICA), Public Law 98-369, sec. 2701, established ``full and open'' as
the competition standard in federal contracting. CICA's enactment
marked a culmination of concerns that competition had become the
exception, rather than the rule, in acquiring goods and services.
Despite these concerns, CICA's approach to competition has been
criticized as unduly burdensome and complex. These concerns led to a
series of legislative, regulatory, and policy reforms--the most
significant of which occurred in the mid-1990s--to streamline and
simplify competition and contracting processes. Many of these changes
authorize competition on a relatively restrictive and informal basis.
These changes include, among others:
Authority to conduct limited competitions under multiple
award task and delivery order contracts (MACs) or GSA's Multiple Award
Schedules (MAS) program, where the source selection process for
becoming a contract holder is open to all interested sources but
competitions for orders are limited to pre-qualified contract holders;
and
Authority to seek competition ``to the maximum extent
practicable'' using simplified source selection procedures for all
actions under the simplified acquisition threshold (SAT), which is
currently at $100,000, and, on a test basis, up to $5 million for
commercial items.
An increasing number of recent reports addressing streamlined
acquisition processes and competition practices, including studies by
the General Accounting Office and agency inspectors general, call into
question whether agencies are taking advantage of the full range of
marketplace capabilities in their use of competition. In addition,
concerns have been voiced that other acquisition practices are also
limiting opportunities for contractors, especially small businesses. In
particular, there is ongoing concern that agencies are unnecessarily
bundling
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contracts and, in doing so, have created an environment that makes it
difficult for small businesses to flourish.
The President is committed to ensuring that agencies take full
advantage of competition in contracting, especially the services of
small business contractors. This commitment, like those in the
President's Management Agenda generally, reflect the Administration's
focus on strengthening the performance of government through results-
oriented initiatives--i.e., in this case, improving the return on
taxpayer investments in contracting. To this end, OMB has been
instructed both to review competition practices at agencies with
significant procurement activities and to develop a strategy to address
contract bundling.
OMB has established two inter-agency working groups to carry out
these efforts: one working group will address agency competition
practices; the other will develop a strategy for unbundling contracts
whenever practicable. OMB seeks public comment from all interested
parties, and especially from small businesses, to inform these working
groups. Comments are especially welcome on the following topics:
1. Use of other than full and open competition. What are the
positive and negative effects of authorities that allow competition on
other than a full and open basis?
Authorities to consider might include:
(1) Micro-purchase authority (see Federal Acquisition Regulation
(FAR) Subpart 13.2);
(2) Authority to transact using the government-wide purchase card
(see FAR 13.301);
(3) Authority to seek competition to the ``maximum extent
practicable'' and use of simplified source selection procedures for
acquisitions under the SAT (see FAR part 13 generally) and up to $5
million for the acquisition of commercial items (see FAR subpart 13.5);
(4) Authority to conduct limited competitions through MACs (see FAR
16.504 and 16.505) and the MAS program (see FAR subpart 8.4); and
(5) Inter-agency contracting through government-wide acquisition
contracts (i.e., task or delivery order contracts for information
technology established for government-wide use and operated by
executive agents designated by OMB), multi-agency contracts (i.e., task
or delivery order contracts established for use by government agencies
consistent with the Economy Act), or other contracts for multiple
agency use.
Effects to consider might include:
(a) Opportunities to learn about and participate in planned
acquisitions;
(b) Ability of contractors to offer, or agencies to secure: (i)
Fair and reasonable pricing, (ii) favorable terms and conditions, and
(iii) timely delivery of good and services; and
(c) Ability of contractors to make meaningful offers and agencies
to make rationally-based decisions.
2. Use of full and open competition. What are the effects, positive
and negative, of changes made in the way full and open competition is
pursued, such as under Part 15 of the FAR? (For effects to consider,
see question no. 1.)
3. Areas of impact. Have the authorities identified in question
nos. 1 and 2 had an especially noticeable effect on any particular: (a)
Dollar range, (b) contract type, or (c) product or service category?
4. Barriers to small business participation. What barriers
presently make it difficult for small businesses to participate in
federal procurement, and what steps can be taken to remove barriers to
participation, particularly in full and open competitions?
5. Contract bundling. If you believe that agency contract bundling
has direct effects on participation by small businesses in federal
contracting, what steps can be taken to mitigate those effects?
6. Application of electronic commerce techniques. How has
electronic commerce affected contractor participation in government
contracting in general, and small business participation in particular,
and in what, if any, ways can its applications be improved to increase
participation in government contracting?
7. Studies and articles on competition and bundling. What, if any,
recent studies or articles addressing competition or contract bundling
in federal contracting should be considered by OMB's competition and
bundling working groups?
Special Accommodations
The public meeting is physically accessible to people with
disabilities. Requests for sign language interpretation or other
auxiliary aids should be directed to Ms. Diering (202-395-3254) at
least 5 days prior to the meeting date.
Angela B. Styles,
Administrator.
[FR Doc. 02-11139 Filed 5-3-02; 8:45 am]
BILLING CODE 3110-01-P