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    Previous MACC's have been used for not even a 1/8 of the total amount requested. Working on the next solicitation, it occurred to me, Why not have the new MACC for longer than 5 years? After looking into the DFARS, 217.204(e)(i)(c) the period could be 10 years if approved by the head agency. How will this affect 8(a) and HUBZones if the period is longer than 5 years? We are planning to also do on-off ramp procedures.


    Answer

    In your question you mentioned that previous Multi Award Contracts are used 1/8th  of the time.  Unfortunately, in my research to support this statement, there are no articles regarding this data and this could be unique to your organization, whereas other organizations may reach their ceilings the first year such as the NETCENTRIC (NETCENTS 2) Small Business Set-aside  (Reserve) 7-year multiple award contract.
     
    As you begin to build your next acquisition plan to draft your next solicitation, conduct market research IAW Far Part 10 to establish support to justify your requirement for more than seven years.  When considering your next solicitation, in accordance with FAR Part 17.106-2, multi-year contracts shall reflect all the factors to be considered for evaluation, specifically including the following:
     (a) The requirements, by item of supply or service, for the—
    (1) First program year; and
    (2) Multi-year contract including the requirements for each program year.
    (b) Criteria for comparing the lowest evaluated submission on the first program year requirements to the lowest evaluated submission on the multi-year requirements.
    (c) A provision that, if the Government determines before award that only the first program year requirements are needed, the Government’s evaluation of the price or estimated cost and fee shall consider only the first year.
    (d) A provision specifying a separate cancellation ceiling (on a percentage or dollar basis) and dates applicable to each program year subject to a cancellation (see 17.106-1(c) and (d)).
    (e) A statement that award will not be made on less than the first program year requirements.
    (f) The Government’s administrative costs of annual contracting may be used as a factor in the evaluation only if they can be reasonably established and are stated in the solicitation.
     
    In addition, your market research must also review consolidation and bundling justifications. Make sure your market research can justify your acquisition strategy in accordance with FAR 10.001 (c) If an agency contemplates consolidation or bundling, the agency—
     
    (1) When performing market research, should consult with the agency small business specialist and the local Small Business Administration procurement center representative (PCR).  (2) You must also notify any affected incumbent small business concerns of the Government's intention to bundle the requirement and how small business concerns may contact the appropriate Small Business Administration procurement center representative (see 7.107-5(a)) and the market research IAW FAR 10.002 (e) Agencies should document the results of market research in a manner appropriate to the size and complexity of the acquisition.
     
    Your comment states that after looking into the DFARS, 217.204(e)(i)(c) the period could be 10 years if approved by the head agency. How will this affect 8(a) and HUBZones if the period is longer than 5 years?  Again, as stated above, you must have current market research and follow FAR Part 17 and FAR Part 10 as a minimum for this acquisition. Your market research should ensure that small businesses are given the maximum extent practicable to compete for government opportunities (FAR Part 19).  Recommend you review the DoD Inspector General Report dated March 20, 2015 http://www.dodig.mil/reports.html/Article/1119138/small-business-contracting-at-regional-contracting-office-national-capital-regi/ ,where the prime and subcontracting findings did not allow small businesses to compete at the maximum extent practicable. Regional Contracting Office – National Capital Region (RCO-NCR) contracting officials delayed competition by awarding seven bridge contracts, totaling $91.1 million. Bridge contracts are noncompetitive contracts used to provide continuity of service between the end of one contract and the beginning of another.  As you are trying to justify a 10 year contract period with on/off ramps and the time it will take to make the award, will you need to award bridge contracts? Therefore review what the DoD IG report findings during their review. If there are no prime opportunities, your market research should provide subcontracting opportunities. In the DoD IG report, RCO-NCR contracting officials did not ensure that prime contractors provided small businesses adequate subcontracting opportunities.  The DoD IG reviewed seven prime contracts (valued at $871 million) awarded by RCO-NCR contracting officials that should have required subcontracting plans. For six of these seven contracts, RCO-NCR contracting officials did not ensure that prime contractors provided small businesses with adequate subcontracting opportunities. RCO-NCR contracting officials awarded: four contracts, valued at $58.2 million, either without requiring a subcontracting plan or with a subcontracting plan that did not include small business subcontracting goals; and two contracts, valued at $790 million, which had subcontracting plans with small business subcontracting goals; however, the contracting officials did not monitor whether the contractor met the goals. These conditions occurred because RCO-NCR did not have policies and procedures for evaluating and approving subcontracting plans or for monitoring contractor compliance with subcontracting plans.  As a result, small businesses may not have received subcontract work that large businesses were required to provide, and RCO-NCR officials may have missed an opportunity to recoup potential liquidated damages of up to $153.5 million which they may have been entitled to.  Therefore before determining that a 10 year contract is best for your acquisition, your market research and your small business office can help guide you to reduce or avoid impact of bundling and consolidations that would have an effect on 8a’s and HUBZones.

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