New interagency contracts might need approval

Officials might finally be cracking down on interagency contracts after years of concern about their proliferation. Paul Denett, administrator of the Office of Federal Procurement Policy, wrote in a June 6 memo that OFPP wants to establish a process for reviewing business cases for new multiagency contracts (MACs).

Such a review could help stem abuses of MACs, said Neal Fox, consultant and former assistant commissioner of acquisition at the General Services Administration. The Federal Acquisition Regulation has specific rules governing MACs, but agencies often ignore them. Meanwhile, creating MACs allows agencies to skirt OFPP rules and oversight that apply to other contracts, Fox said.

Denett said he favors a review process similar to one that applies to governmentwide acquisition contracts. They require OFPP approval.

MACs and GWACs are types of task- or delivery-order contracts that agencies establish for themselves and other agencies to use. GWACs are restricted to information technology products and services and require OFPP’s prior approval. MACs don’t have those restrictions.

Denett said OFPP’s staff is too small to review each MAC business case, adding that OFPP would need to seek help from the Chief Acquisition Officers Council.

Fox said a solution is simply to have the council review the business cases.