GWACs: what are they and why would you want one?

Governmentwide acquisition contracts, or GWACs, have become commonplace vehicles for federal clients purchasing a vast array of products and services. In fact, those vehicles account for more than half the money spent on IT-related solutions.

GWACS most often possess several inherent advantages. Among them:

* Vehicles are often mandatory for users in the sponsoring agency. If you are not on the GWAC, you have no opportunity to bid on the requirement.

* Competition is limited solely to prime contract awardees, greatly reducing the number of competitors when compared with open market RFPs.

* Major terms and conditions are pre-negotiated as part of the prime contract awards.

* Awards tend to be long term--typically, five or more years before requirements are re-competed.

* GWACs can serve as a convenient procurement means for your government customers even when they are not part of the sponsoring Agency; hence the term "governmentwide."

As with any process, there is a downside to such acquisition vehicles. An enterprise must be completely candid with itself to determine if a particular GWAC, or even GWACs in general, serve their mission well. Considerations to be weighed:

* There is generally a long timeline from start to finish in planning, issuing and awarding many of these types of contracts due to their size and complexity.

* An enterprise must possess a niche solution so that they may be distinguished from the many other awardees and their teaming partners.

* If not the prime contractor, a team member must have assurances in their teaming agreement that the prime will make available all delivery or task orders that are generated under the GWAC.

* The GWAC is the proverbial "hunting license." You must go out and genuinely market and sell to the end user. There are few, if any, bluebirds in this arena. Virtually all task orders will be pre-sold by the time they are actually released.

* You will invariably face price competition from among the other prime contractors pursing the same task order as you are.

GWACs, because of their dominance, cannot be ignored. If your service or product offering addresses a specific problem in a target agency, not having a GWAC or being on a team may lock you out of marketing to that agency. However, as with any investment, you must determine realistically the possible return on investment for the effort required to pursue, bid, manage, market, and sell to eventually capture sales revenue.

For more information visit www.SenecaCreekConsulting.com.

Peter Adler

Seneca Creek Consulting