I attended Tuesday, January 22 in NCMA Tysons Corner educational seminar Gregg Garrett speaking on "IDIQ contracting: the Good, the Bad, and the Ugly”. What a conversation!
He first talked about ID contracting fundamentals that is. Basically, everything is an IDIQ. An IDIQ issues usually by agency; GWAC is government wide: MAS is GSA run; and BPA is essentially an IDIQ. An IDIQ is the most preferred way that government spends money. In 2008, 60% of money spent was through use IDIQ's; in 2011, 80% were on IDIQs.
We add that, the loss of experienced letter personnel (30+ plus years); now complemented by a junior acquisition workforce with little training. Add to the mix, lowest price technically acceptable; how can we ensure “technically acceptable”? The pendulum has swung back to the 1980s; and that's not good!
The next issue is the need for well–defined acceptance criteria. To the government, “it's never good enough”.
Finally, we have the DCAA issue. Of the past couple of years, they have increased their staffing by 33% and have generated 30% less reports.
Where does that take us? Small companies are going to find it harder to compete against larger companies and may not make money on IDIQ contracts. The other issue small companies face is the contractor/subcontractor relationship. Both sides need clear expectations; regular feedback; and treated with respect.
In my opinion, Gregg hit the nail on the head! He knows what he's talking about and he is a stimulating speaker!