Please provide DoD policy memo if you are aware.
Also would like to hear your opinion on the advantages and disadvantages of multiple and single award for type D and C Contracts. I have read FAR 16.504 and DFARs 204.70 but would like your opinion.
Very much appreciate your assistance in this matter.
Thanks, V/R Frank Lorentzen, CDR, SC, USN (retired) and prior Contracting Officer
We have not been able to source the DoD memo you are referring to. DFARS subpart 204.70 has been removed. DAU and AAP do not offer opinions as it would be a single professor's thinking and not the opinion of DAU.
Open full Question Details
We will note a disadvantage of multiple awards is that there is more administrative activity and challenges related to multiple contracts. An advantage is the ability to continue completion through fair opportunities.
As stated below an important part of the decision process starts with market research and the acquisition strategy built to best meet your team's specific acquisition needs.
FAR specifically identifies a statutory preference for a competition resulting in award of multiple contracts in FAR subpart 16.5.
It goes into some detail at FAR 16.504 Indefinite-quantity contracts.
(c) Multiple award preference—
(1) Planning the acquisition.
(i) Except for indefinite-quantity contracts for advisory and assistance services as provided in paragraph (c)(2) of this section, the contracting officer must, to the maximum extent practicable, give preference to making multiple awards of indefinite-quantity contracts under a single solicitation for the same or similar supplies or services to two or more sources.
(ii) (A) The contracting officer must determine whether multiple awards are appropriate as part of acquisition planning. The contracting officer must avoid situations in which awardees specialize exclusively in one or a few areas within the statement of work, thus creating the likelihood that orders in those areas will be awarded on a sole-source basis; however, each awardee need not be capable of performing every requirement as well as any other awardee under the contracts. The contracting officer should consider the following when determining the number of contracts to be awarded:
(1) The scope and complexity of the contract requirement.
(2) The expected duration and frequency of task or delivery orders.
(3) The mix of resources a contractor must have to perform expected task or delivery order requirements.
(4) The ability to maintain competition among the awardees throughout the contracts’ period of performance.
(B) The contracting officer must not use the multiple award approach if—
(1) Only one contractor is capable of providing performance at the level of quality required because the supplies or services are unique or highly specialized;
(2) Based on the contracting officer’s knowledge of the market, more favorable terms and conditions, including pricing, will be provided if a single award is made;
(3) The expected cost of administration of multiple contracts outweighs the expected benefits of making multiple awards;
(4) The projected task orders are so integrally related that only a single contractor can reasonably perform the work;
(5) The total estimated value of the contract is less than the simplified acquisition threshold; or
(6) Multiple awards would not be in the best interests of the Government.
(C) The contracting officer must document the decision whether or not to use multiple awards in the acquisition plan or contract file. The contracting officer may determine that a class of acquisitions is not appropriate for multiple awards (see subpart 1.7).
(D) (1) No task or delivery order contract in an amount estimated to exceed $112 million (including all options) may be awarded to a single source unless the head of the agency determines in writing that—
(i) The task or delivery orders expected under the contract are so integrally related that only a single source can reasonably perform the work;
(ii) The contract provides only for firm-fixed price (see 16.202) task or delivery orders for—
(A) Products for which unit prices are established in the contract; or
(B) Services for which prices are established in the contract for the specific tasks to be performed;
(iii) Only one source is qualified and capable of performing the work at a reasonable price to the Government; or
(iv) It is necessary in the public interest to award the contract to a single source due to exceptional circumstances.
(2) The head of the agency must notify Congress within 30 days after any determination under paragraph (c)(1)(ii)(D)(1)(iv) of this section.
(3) The requirement for a determination for a single-award contract greater than $112 million—
(i) Is in addition to any applicable requirements of subpart 6.3; and
(ii) Is not applicable for architect-engineer services awarded pursuant to subpart 36.6.
(2) Contracts for advisory and assistance services.
(i) Except as provided in paragraph (c)(2)(ii) of this section, if an indefinite-quantity contract for advisory and assistance services exceeds 3 years and $13.5 million, including all options, the contracting officer must make multiple awards unless—
(A) The contracting officer or other official designated by the head of the agency determines in writing, as part of acquisition planning, that multiple awards are not practicable. The contracting officer or other official must determine that only one contractor can reasonably perform the work because either the scope of work is unique or highly specialized or the tasks so integrally related;
(B) The contracting officer or other official designated by the head of the agency determines in writing, after the evaluation of offers, that only one offeror is capable of providing the services required at the level of quality required; or
(C) Only one offer is received.
(ii) The requirements of paragraph (c)(2)(i) of this section do not apply if the contracting officer or other official designated by the head of the agency determines that the advisory and assistance services are incidental and not a significant component of the contract.