October 1, 2024

How GWACs and Multi-Agency Contracts Streamline the Federal Procurement Process

Written by: Shauna Weatherly, President of FedSubK, SME Advisor to GovPort

For organizations in government contracting, acquiring and negotiating contracts can be tedious and time-consuming. Our team recently sat down with the President and founder of Federal Subcontract Solutions (FedSubK), Shauna Weatherly, to discuss Governmentwide Acquisition Contracts (GWACs) and Multi-Agency Indefinite-Delivery Indefinite-Quantity (MA-IDIQ). We talked about the perceived pendulum swing toward the Government’s reliance on these larger contracts and how businesses should view them in terms of optimizing existing relationships with federal agencies to provide mission-critical solutions.  

We also explored the benefits and pitfalls of these contracts and how businesses can find teaming partners and strategically leverage industry connections to participate in and successfully perform under GWACs and MA-IDIQs.

What are GWACs?  

Governmentwide Acquisition Contracts (GWACs) are contracts established by one federal agency and made available for use by other federal agencies and organizations. These Indefinite Delivery Indefinite Quantity (IDIQ) contracts are typically awarded to pools of businesses classified by size and socio-economic program. GWACs are primarily concentrated in the IT industry, while MA-IDIQs cover non-IT services like professional training, human capital, and building maintenance/operations services.  

GWACs and MA-IDIQs are designed to simplify and expedite the procurement process. Most GWACs and many MA-IDIQs seek and often receive the designation of “Best in Class” from the Office of Management and Business (OMB), meaning they meet a set of key criteria under which use of the GWAC is encouraged (and could be mandated on an agency-by-agency basis) as a contract of choice for Federal purchasing.  

The goal when utilizing BIC contracts is to align categories of purchases across the Government for smarter spending while making it easier for agencies to meet their needs.  

GWAC Examples:

MA-IDIQ Examples:

NOTE: The Interagency Contract Directory (ICD) is a central repository of Indefinite Delivery Vehicles and includes GWACs and other interagency contracts as well as intra agency IDVs.

GWACs and MA-IDIQs Benefit Federal Agencies in Three Major Ways

1.Simplified Contracts and Negotiations  

These contract vehicles streamline what are typically lengthy and complex federal procurement processes by providing a pre-negotiated and pre-vetted framework. Standardized terms and conditions ensure all parties adhere to known baseline requirements and rates are already established, reducing the administrative burden for all parties.

2.Reduction in Procurement Lead Times

Ordering agencies can simply place orders under these vehicles without the need to publicly solicit interest in a project. Agencies send requests directly to awardees, providing fair opportunity for all awardees within the selected pool to compete.  

3. Improved Compliance and Risk Management

With these vehicles, compliance with federal regulations is more manageable for the ordering agency because they are not also burdened with the need to perform contract administration efforts. Contract administration is provided by the awarding agency. Since these vehicles have already undergone a rigorous review of contractor qualifications, experience, performance, and pricing, this frees up the ordering agency acquisition personnel to focus solely on performance and risk management of the tasks at hand. Standardized terms and conditions ensure all parties adhere to known baseline requirements, lowering the risk of non-compliance and most often reducing the administrative burden for all parties.

Insights from Industry Experts

Like any contract your business may seek, GWACs and MA-IDIQs only make sense when pursued strategically. There are common challenges and barriers to entry that businesses face. "To learn more about how businesses can be smart in terms of their resources when looking at offering for GWACs and MA-IDIQs, Shauna Weatherly emphasized the importance of approaching the GWACs and MA-IDIQs landscape holistically and ensuring that GWACs align with the business’s capabilities.  

Check out our upcoming webinar series to stay current on key topics affecting the GovCon community.

Here are a few practical tips she shared:  

Most importantly, “don't want to wait until GWACs and MA-IDIQs are available or coming out to bid to start building your network,” Weatherly advises.  

The Bottom Line

Governmentwide Acquisition Contracts (GWACs) and Multi-Agency Indefinite-Delivery Indefinite-Quantity (MA-IDIQs) offer significant advantages for Federal agencies by simplifying the procurement process for complex groups of related services. Through leveraging pre-negotiated rates and terms agencies can often reduce costs and gain access to a wide array of services while ensuring compliance with federal regulations. Businesses interested in pursuing GWACs as a business strategy should prioritize developing relationships in the industry that allow you to offer a complete solution for agencies and leverage the strategic relationships of teaming partners to maximize the vast ordering potential GWACs and MA-IDIQs provide.  

Learn more about how GovPort contractor management software can help your organization navigate GWACs and MA-IDIQs and stay on top of your contracting needs.