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Report: Spending up on multiple-award contracts

Jul. 27, 2012 - 03:04PM   |  
By SARAH CHACKO   |   Comments

Federal procurement spending through multiple-award contracts increased 4 percent last year, despite an overall drop in contract spending, a new report by Bloomberg Government shows.

Multiple-award contract spending hit $132 billion in 2011, according to the report, which Bloomberg released Thursday.

MACs, which include the General Services Administration’s federal supply schedules, enable agencies to hold a competition among a pre-selected pool of vendors for each order.

Total federal contracting, however, dropped slightly — less than 1 percent — from $534 billion in 2010 to $530 billion in 2011, according Bloomberg.

Agencies are increasing the number of vendors that can compete for federal business on MACs, which increases competition for orders.

“Agencies are awarding more slots on non-schedule MACs, in part to expand their supplier base and in part to drive down prices by adding competitors,” the report says. “By selecting more companies, agencies also reduce the likelihood of bid protests — which can delay orders on a newly awarded MAC by months.”

Bloomberg Government reported in December that nearly 700 MACs have sprouted up across the government in the last five years.

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