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August 19, 2005
Sole Source Contracts
Everyone likes a sole-source contract when their company gets one, but we don't like them too much when they are given to other companies. When other companies get them, it's unfair; when our company gets one, it's a good thing.
So what's a sole source contract, you ask? Well, according to the Federal Acquisition Regulations, sole-source contracting can occur "when the supplies or services required by the agency are available from only one responsible source." That means, basically, that an agency can contract with a company without any competition. There are a few in's and out's to this -- you can read about them here.
I bring this up because I just got finished doing a quick sole source proposal for one of my clients. In this case, the federal agency decided that it needed to have a particular task done, and that the task could only be performed by two people that used to work there. My client had marketed to this agency, and it was "decided" that their company could hire these two people as consultants to perform the work. So the agency issued an RFP to my client, which no other company received. My client then had to respond to this RFP so that the agency would have the proper paperwork to award them the contract.
Fair? Not really. But of course it happens all the time. Most of the time we only hear about it when there is some type of investigation into possible improper practices and the media gets hold of it. But in reality, lots of companies receive sole source contracts. In many cases, it's just a matter of marketing and knowing the right people in an agency. In other cases, there is really only one responsible source out there, or there is a particularly urgent need for a product or service (another way that agencies can justify a sole source contract).
That's the lesson (or rant) for today.
Posted by Deborah at August 19, 2005 05:27 AM
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