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WH Orders Agencies to Review Existing Contracts Before Asking for New Ones

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The White House has ordered procurement executives at federal agencies to prepare analyses to ensure they are not duplicating an existing contract before releasing a solicitation.

The Office of Federal Procurement Policy released guidance Thursday, saying agencies must begin developing business cases for establishing or renewing government-wide contracts, multiagency contracts or interagency contracts.

The OFPP said the new rules for GWACs will take effect Jan. 1, 2012.

In compiling business cases, agencies will balance the value of creating a new contract against the benefit of using an existing one and whether the expected return from investment in the proposed contract is worth the taxpayer resources.

Guidelines for multiagency and interagency contracts will be introduced in stages. In fiscal year 2012, business cases will be required for contracts valued at $250 million or more. In fiscal 2013, they will be required for contracts valued at $100 million or more.

In fiscal 2014, analyses will be required for contracts valued at $50 million or more.

When an agency is considering starting a large new contract, either for itself or as an interagency contract, they will post information online for other sites to review, OFPP Administrator Daniel Gordon said on the White House blog.

“That should help agencies better determine if their needs can be met using an existing contract or – if they decide a new contract is justified – how they can accommodate other agencies’ needs under the new contract,” Gordon said.

Click here to read the full OFPP guidance.

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