DOD rolls out multiple-award contracts rule

A new proposed rule would no longer require the Pentagon to consider cost or price when issuing certain multiple-award task order contracts.

According to a notice in the Federal Register, the rule would implement a section of the Fiscal Year 2017 National Defense Authorization Act. The proposal would add an "exception to requiring price or cost as an evaluation factor in solicitations valued above the simplified acquisition threshold for multiple-award contracts for the same or similar services when the Government intends to award a contract to each and all qualifying offerors."

Today, "offerors on solicitations for multiple-award contracts for services are required to submit cost or price information with their proposals in order to be eligible for award," the notice says. "The time and effort that offerors expend to produce this cost or price information varies according to numerous factors, such as the proposed contract type, the source selection approach, or the offeror's internal processes and resources."

But when the final rule is implemented, Pentagon contracting officers will be able to opt not to include cost or price as an evaluation factor, as long as an award will be made to all qualified bidders. Cost and price information would be evaluated before awarding a task order under the contract.

The notice says DOD is seeking input from contractors that might be affected, particularly the type of personnel used to prepare this information, the hours they typically spend and the hourly rate of these employees.

Alan Chvotkin of the Professional Services Council told Inside Defense his organization is "supportive" of the rule. "It shifts the competition to when the real work begins," he said.

Comments will be accepted through Nov. 23, the notice says.